N o t e s t o t h e f i n a n c i a l s t a t e m e n t s
Year ended 31 March 2015
3 Significant accounting policies (continued)
(j)
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:
(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 units in the Trust are not obtained from that operation.
The reduced concessionary tax rate of 10.0% has been extended to 31 March 2020.
(k) Distribution policy
The Trust’s distribution policy is to distribute 100% of its taxable income to Unitholders, other than gains on the sale
of properties that are determined by IRAS to be trading gains. With effect from 1 April 2014, the Manager adopted a
semi-annual distribution frequency, with distributions being made in respect of the six months ending 30 September
and 31 March each year. Income from the overseas subsidiaries will be distributed, after relevant adjustments (if any)
such as withholding tax payable, at the discretion of the Manager.
(l)
Issue expenses
Issue expenses represent expenses incurred in the issuance of additional units in the Trust. The expenses are deducted
directly against Unitholders’ funds, as stipulated in the Trust Deed.
(m) 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.
Contingent rentals, which include gross turnover rental, are recognised as income in the accounting period in which
they are earned and the amount can be measured reliably.
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.
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