Page 151 - ar2013.pdf

Notes to the Financial Statements
Year ended 31 March 2013
ANNUAL REPORT FY12/13 147
3 Significant accounting policies (continued)
(i) Taxation (continued)
The Trustee and the Manager will deduct tax at the reduced concessionary rate of 10.0% from distributions made out of the
Trust’s taxable income that is not taxed at the Trust’s level to beneficial Unitholders who are qualifying foreign non-individual
investors. A qualifying foreign non-individual investor is one who is not a resident of Singapore for income tax purposes and:
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(ii) Who carries on any operation in Singapore through a permanent establishment in Singapore, where the funds used
to acquire the units in the Trust are not obtained from that operation.
The reduced concessionary tax rate of 10.0% will expire for distributions made after 31 March 2015 unless this concession
is extended.
(j) Distribution policy
The Trust’s distribution policy is to distribute 100% of its distributable income to Unitholders, other than gains on the sale of
properties that are determined by IRAS to be trading gains and unrealised surplus on revaluation of investment properties
and investment properties under development. Distributions are usually made on a quarterly basis at the discretion of the
Manager. However, in the case of its overseas subsidiaries, income from these subsidiaries will be distributed, after relevant
adjustments (if any) such as withholding tax payable, at the discretion of the Manager.
(k) Issue expenses
Issue expenses represent expenses incurred in the issuance and placement of additional units in the Trust. The expenses are
deducted directly against Unitholders’ funds, as stipulated in the Trust Deed.
(l) Revenue recognition
Rental income from operating leases
Rental income receivable under operating leases is recognised on a straight-line basis over the term of the lease, except
where an alternative basis is more representative of the pattern of benefits to be derived from the leased assets. Lease
incentives granted are recognised as an integral part of total rental income over the term of the lease.
Dividend
Dividend income is recognised on the date that the Group’s right to receive payment is established.
Other income
Other income comprises interest income received from finance lease receivable, car park charges, utilities income and sundry
income. Interest income received from finance lease receivable is recognised on a basis that reflects a constant periodic
rate of return on the net investment in the finance lease receivable. Except for interest income received from finance lease
receivable, other income is recognised when the right to receive payment is established, after services have been rendered.