Notes to the financial statements
Year ended 31 March 2016
3 Significant accounting policies (continued)
(i)
Taxation (continued)
However, the Trustee and the Manager will not deduct tax from distributions made out of the Trust’s taxable
income that is not taxed at the Trust’s level to the extent that the beneficial Unitholders are:
(i)
individuals (whether resident or non-resident) who receive such distributions as investment income
(excluding income received through a Singapore partnership);
(ii)
companies incorporated and tax resident in Singapore;
(iii)
Singapore branches of foreign companies which have presented a letter of approval from the IRAS granting
waiver from tax deducted at source in respect of distributions from the Trust;
(iv)
non-corporate Singapore constituted or registered entities (e.g. town councils, statutory boards,
charitable organisations, management corporations, clubs and trade and industry associations constituted,
incorporated, registered or organised in Singapore);
(v)
Central Provident Fund (“CPF”) members who use their CPF funds under the CPF Investment Scheme and
where the distributions received are returned to the CPF accounts; and
(vi)
individuals who use their Supplementary Retirement Scheme (“SRS”) funds and where the distributions
received are returned to the SRS accounts.
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.
(j)
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. Distributions are made semi-annually,
for 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.
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A-REIT ANNUAL REPORT
2015/2016
