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 Mall Trust ("CMT") 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 1(both dates inclusive).
The Manager of CMT has established an arrangement with the IRAS to allow eligible Unitholders to claim a back-end refund of tax over-deducted, if any, from distributions made to them.
Eligible Unitholders are:
1 Or which other date as may be applicable should the duration of the tax concession mentioned herein be subsequently extended.
A foreign non-individual investor is a person (other than an individual) who is not a resident of Singapore* for income tax purposes and:
*A company is not a tax resident in Singapore if the management and control of its business is exercised outside Singapore during the respective calendar year in which the distribution was made and there is no intention to change the management and control of its business to Singapore.
**A permanent establishment is defined under the Singapore Income Tax Act as a fixed place where a business is wholly or partly carried on including a place of management, a branch, an office, a factory, a warehouse, a workshop, a farm or plantation, a mine, oil well, quarry or other place of extraction of natural resources, a building or work site or a construction, installation or assembly project. A unitholder shall be deemed to have a permanent establishment in Singapore if it: -
carries on supervisory activities in connection with a building or work site or a construction, installation or assembly project; or
has another person acting on the unitholder's behalf in Singapore who: -
A) Which Distributions Are Eligible For The Tax Refund?
The tax refund applies to distributions paid or to be paid within the period February 2005 to 31 March 20201.
B) How To Make A Claim?
C) When Do We Submit Form R1?
D) Will An Amended Tax Certificate Be Issued For The Refund?
E) When Will We Receive Our Tax Refund?
A) Which Distributions Are Eligible for Refund?
The tax refund relates to distribution periods commencing on or after 1 January 2004. In the case of beneficial owners who are Foreign Non-Individuals, the tax refund applies to distributions received during the period, 18 February 2005 to 31 March 20201.
B) How To Make A Claim?
C) Is Identification (ID) Number Required On The Declaration Form?
D) When Do We Submit Form R2?
E) Will An Amended Tax Certificate Be Issued For The Refund?
F) When Will We Receive The Tax Refund On Behalf Of The Beneficial Owners?
Time limit for claim of 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 CMT for the period from 1 April 2010 to 30 June 2010 (which relates to the year of assessment 2011), the claim must be submitted to the IRAS on or before 31 December 2015. Unitholders and the Depository Agents must ensure that the relevant Forms are submitted on a timely basis to allow the Trustee of CMT to make the refund claim within the prescribed time limit. The IRAS will not process any claim that is out of time.