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 2015 (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.
Which Unitholders Are Eligible For This Tax Refund?
Eligible Unitholders are:
- Individuals holding CCT Units through a Depository Agent and have received CCT distributions (relating to the distribution periods commencing on or after 1 January 2004) after tax-deduction; or
- Foreign non-individuals holding CCT units through a Depository Agent and have, on or after 18 February 2005 to 31 March 2015, received CCT distributions after tax-deduction of more than 10%;
- Foreign non-individuals holding CCT units through a Depository Agent and have, on or after 18 February 2005 to 31 March 202015, received CCT distributions after tax-deduction of more than 10%;
- A charity registered under the Charities Act (Cap. 37) or established by any written law, a town council, a statutory board, a co-operative society registered under the Co-operative Societies Act (Cap. 62) or a trade union registered under the Trade Unions Act (Cap. 333), collectively referred to as "Exempt Non-corporate Unitholders"). If your CCT units are held through a Depository Agent, please approach your Depository Agent who will claim the refund on your behalf.
How To Make A Claim?
- If you are a Foreign Non-Individual or an Exempt Non-corporate Unitholder holding CCT Units in your own name, Click Here.
- If you are an Individual, Foreign Non-Individual or an Exempt Non-corporate Unitholder holding CCT Units through Depository Agents, please liaise with your respective Depository Agent on your claim for the tax refund. The claim will be made on your behalf by your Depository Agent.
- If you are a Depository Agent and wish to claim for the tax refund on behalf of beneficial owners who are Individuals, Foreign Non-Individuals or Exempt Non-corporate Unitholders, Click Here.
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