How will I benefit from the recent announcement on tax exemption for Unitholders?
With immediate effect, all individual Unitholders (including individuals who hold Units jointly with other individuals but not as a partnership) will receive gross distributions from A-REIT without tax being deducted at source. The gross distributions received by the individuals as investment income will be exempted from Singapore income tax. The tax exemption will only apply to gross distributions made by A-REIT out of its taxable income earned from 1 January 2004. Individual Unitholders will no longer be required to complete and submit tax status declaration forms. Individuals who receive such distributions as gains or profits from any trade, business or profession will continue to be taxable and are required to declare such distribution as income in their tax returns. Inland Revenue Authority of Singapore (IRAS) has also confirmed that the rate of tax deducted at source, if any, to be applied to future distributions will be at the reduced corporate tax rate of 20% from year of asses
