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Tax Refund Procedures for CapitaLand Mall Trust Unitholders

Background

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.

Which Unitholders Are Eligible For This Tax Refund?

Eligible Unitholders are:

  1. Individuals holding CMT Units through Depository Agents; or
  2. Foreign Non-individual holding CMT Units in their own name or through Depository Agents; or
  3. Charities registered under the Charities Act (Cap. 37) or established by any written law, town councils, statutory boards, co-operative societies registered under the Co-operative Societies Act (Cap. 62) or trade unions registered under the Trade Unions Act (Cap. 333) (collectively referred to as "Exempt Non-Corporate Unitholders") holding CMT Units in their own name or through Depository Agents.

How To Make A Claim?

  1. If you are a Foreign Non-individual or an Exempt Non-Corporate Unitholder holding CMT Units in your own name, Click Here.
  2. If you are an Individual, a Foreign Non-individual or an Exempt Non-Corporate Unitholder holding CMT 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.
  3. 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.

1 Or which other date as may be applicable should the duration of the tax concession mentioned herein be subsequently extended.

Definition of Foreign Non-Individual

A foreign non-individual investor is a person (other than an individual) who is not a resident of Singapore* for income tax purposes and:

  1. who does not have a permanent establishment** in Singapore; or
  2. who carries on any operation in Singapore through a permanent establishment** in Singapore, where the funds used to acquire the REIT's units are not obtained from that operation.

*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: -

  1. has and habitually exercises an authority to conclude contracts;
  2. maintains stock of goods or merchandise for the purpose of delivery on its behalf; or
  3. habitually secures orders wholly and almost wholly for the unitholder or for such enterprises as are controlled by the unitholder.

Foreign Non-Individuals Holding CapitaLand Mall Trust Units In Own Name

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?

  • Download and complete Form R1 below. Use a separate Form R1 for each distribution period.
  • Submit the duly completed Form R1, accompanied by the Subsidiary Income Tax Certificate ("SITC") or the Annual Dividend Statement ("ADS") issued by the Central Depository (Pte) Ltd for the distribution in respect of which the claim for refund is made, to Boardroom Corporate & Advisory Services Pte. Ltd., 50 Raffles Place, #32-01 Singapore Land Tower, Singapore 048623

C) When Do We Submit Form R1?

  • You may submit Form R1 and accompanying SITC or ADS to Boardroom Corporate & Advisory Services Pte. Ltd. at any time.
  • The Trustee of CMT will collate the claims for refund submitted by Unitholders and make a claim for refund to the Inland Revenue Authority of Singapore ("IRAS") on a half-yearly basis (Submission deadline is 30 June and 31 December). For example, all Forms received during the period ending 30 June 2014 will be submitted to IRAS sometime in July 2014.

D) Will An Amended Tax Certificate Be Issued For The Refund?

  • CapitaLand Mall Trust Management Limited will issue a letter together with the cheque for the refund amount to the Unitholders. This letter will serve as evidence that the tax refunds have been made.

E) When Will We Receive Our Tax Refund?

  • The tax refund will be paid out to eligible investors upon receipt of the tax refund from the IRAS by the Trustee of CMT.

Download Form R1

Depository Agents Holding CapitaLand Mall Trust Units On Behalf Of Beneficial Owners Who Are Individuals Or Foreign Non-Individuals

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?

  • Download and complete Form R2 below, including Annexes 1 and 2. Use a separate Form R2 for each distribution period.
  • Submit the duly completed Form R2, accompanied by the Subsidiary Income Tax Certificate ("SITC") issued for the distribution in respect of which the claim for refund is made to Boardroom Corporate & Advisory Services Pte. Ltd., 50 Raffles Place, #32-01 Singapore Land Tower, Singapore 048623.
  • Email a soft copy of the completed Annexes to Boardroom Corporate & Advisory Services Pte. Ltd. at SRS.TeamA@boardroomlimited.com.

C) Is Identification (ID) Number Required On The Declaration Form?

  • Yes, ID numbers such as Singapore NRIC number, passport number or foreign ID numbers are required for Individuals who hold their Units through Depository Agents.

D) When Do We Submit Form R2?

  • You may submit the Form R2 and accompanying SITCs to Boardroom Corporate & Advisory Services Pte. Ltd. at any time.
  • The Trustee of CMT will collate the claims for refund submitted by the Depository Agents and make a claim for refund to the Inland Revenue Authority of Singapore ("IRAS") on a half-yearly basis (Submission deadline is 30 June and 31 December). For example, all Forms received during the period ending 30 June 2014 will be submitted to IRAS sometime in July 2014.

E) Will An Amended Tax Certificate Be Issued For The Refund?

  • CapitaLand Mall Trust Management Limited will issue a letter together with the cheque for the refund amount to the Depository Agents. This letter will serve as evidence that the tax refunds have been made.

F) When Will We Receive The Tax Refund On Behalf Of The Beneficial Owners?

  • The tax refund will be paid to Depository Agents upon receipt of the tax refund from the IRAS by the Trustee of CMT. You can then proceed to make refunds to your respective beneficial owners.

Download Circular to Depository Agents (15 February 2006)

Download Form R2

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.