Distributions made by Real Estate Investment Trusts (“REITs”) listed on the Singapore Exchange to individuals, whether foreign or local, is tax exempt. In this respect, the Inland Revenue Authority of Singapore (“IRAS”) has confirmed that all individuals (excluding partnerships) will receive their distributions from Mapletree Logistics Trust ("MLT") without tax being deducted at source (“gross distributions”).
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 have been made to them.
In addition, REITs’ distributions to foreign non-individual investors are entitled to a reduced rate of tax of 10% for distributions made during the period from 18 February 2005 to 31 March 2015.
The Manager of MLT has established an arrangement with the IRAS to allow eligible Unitholders to claim a back-end refund of tax, if any, over-deducted from income distributions made to them.
Who is eligible?
You can avail of this arrangement if you are:
i) a foreign non-individual holding units in Mapletree Logistics Trust ("Units") in your own name; or
ii) an individual or a foreign non-individual whose Units are held through a Depository Agent. Please approach your Depository Agent who will claim the refund on your behalf.
Which distributions are eligible?
This refund arrangement applies to the following distributions:
i) where the beneficial owner of Units is an individual, distributions made by MLT on or after 28 February 2006; and
ii) where the beneficial owner of Units is a foreign non-individual, distributions made by MLT during the period from 28 February 2006 to 31 March 2015.
Please note that MLT’s first distribution after listing was made on 28 February 2006.
What must do you to make a claim?
If you are a foreign non-individual holding Units in your own name:
1. download and complete Form R1. Use a separate Form R1 for each income distribution period.
2. submit the duly completed Form R1, accompanied by the Subsidiary Income Tax Certificate (“SITC”) or the Account Statement issued by the CDP which reflects the distribution in respect of which the claim for refund is made, to Boardroom Corporate & Advisory Services Pte. Ltd. at 50 Raffles Place, Singapore Land Tower, #32-01, Singapore 048623.
If you are an individual or a foreign non-individual and you hold Units through Depository Agents, please liaise with your Depository Agent on your claim for refund. The claim will be made on your behalf by your Depository Agent.
If you are Depository Agent and wish to claim for refund on behalf of beneficial owners who are individuals or foreign non-individuals:
1. download and complete Form R2, including Annexes 1 and 2. Use a separate Form R2 for each income distribution period.
2. 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. at 50 Raffles Place, Singapore Land Tower, #32-01, Singapore 048623.
3. Email a soft copy of the completed Annexes to Boardroom Corporate & Advisory Services Pte. Ltd. at email addresses: firstname.lastname@example.org / email@example.com
When to submit Form R1 or Form R2
You may submit the Forms and accompanying SITCs or CDP Account Statement to Boardroom Corporate & Advisory Services Pte. Ltd. at any time.
The Trustee will collate the claims for refund submitted by Unitholders and the Depository Agents and make a claim for refund to the IRAS on a half-yearly basis. For example, all Forms received during the period ending 30 June 2010 will be submitted to IRAS sometime in July 2010.
When do you get your refund
The amount of tax over-deducted will be refunded only when the IRAS has refunded the amount to the Trustee.
Definition of foreign non-individual
A foreign non-individual investor is defined as one who is not a resident of Singapore* for income tax purposes and:
i) who does not have a permanent establishment** in Singapore; or
ii) who carries on any operation in Singapore through a permanent establishment** in Singapore, where the funds used to acquire the Trust’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: -
i) carries on supervisory activities in connection with a building or work site or a construction, installation or assembly project; or
ii) has another person acting on the unitholder’s behalf in Singapore who: -
a) has and habitually exercises an authority to conclude contracts;
b) maintains stock of goods or merchandise for the purpose of delivery on its behalf; or
c) habitually secures orders wholly and almost wholly for the unitholder or for such enterprises as are controlled by the unitholder.