Distributions made by Real Estate Investment Trusts ("REITs") listed on the Singapore Exchange to Individuals, whether foreign or local, are tax exempt except where such distribution is derived by the Individual through a partnership in Singapore or from the carrying on of a trade, business or profession. In this respect, the Inland Revenue Authority of Singapore ("IRAS") has allowed CapitaLand Commercial Trust ("CCT") to make gross distributions (i.e. without tax deducted at source) to all Individuals (excluding partnerships). Individuals who derived the distributions from the carrying on of a trade, business or profession are not eligible for this tax exemption and are required to declare the distributions in their income tax returns, notwithstanding that gross distributions are made to them.
In addition, REIT's distributions to qualifying foreign non-individual investors are subject to a reduced rate of tax of 10% for distributions made during the period from 18 February 2005 to 31 March 2020 (both dates inclusive).
Where tax has been deducted from distributions made at a higher rate than the applicable tax rate, eligible unitholders may claim a refund of the tax over-deducted from the IRAS through the trustee and manager of CCT. The procedures for this back-end refund claim are set out below.
Eligible Unitholders are:
Time limit for claim or refund
Every claim of refund must be made to the IRAS within 4 years from the end of the year of assessment to which the claim relates. For example, for claim of refund in respect of distributions made by CCT for the period from 1 January 2012 to 30 June 2012 (which relates to the year of assessment 2013), the claim must be submitted to the IRAS on or before 31 December 2017. Unitholders and the Depository Agents must ensure that the relevant Forms are submitted on a timely basis to allow the Trustee of CCT to make the refund claim within the prescribed time limit. The IRAS will not process any claim that is out of time.
Select your status: