Background
Taxable income distributions made by Real Estate Investment Trusts ("REITs") listed on the Singapore Exchange to individuals, whether foreign or local, are tax exempt except where such distribution is derived by the individuals through a partnership in Singapore or from the carrying on of a trade, business or profession.
In this respect, the Inland Revenue Authority of Singapore ("IRAS") has allowed Keppel REIT to make taxable income distributions to all individuals (excluding individuals who hold their units through partnerships) at gross (i.e. without tax being deducted at source). Individuals who derive distributions through a partnership in Singapore or 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 are made to them.
In addition, taxable income distributions to qualifying non-resident non-individual Unitholdersand qualifying non-resident funds are entitled to a reduced rate of withholding tax deduction of 10% for distributions made during the periods from 18 February 2005 to 31 December 20251(both dates inclusive) and 1 July 2019 to 31 December 20251(both dates inclusive) respectively.
In instances where excess withholding tax has been deducted from Keppel REIT's distributions, eligible Unitholders may claim a refund of the tax over-deducted from IRAS through the Trustee and Manager of Keppel REIT. The procedures for this tax refund claim are set out below.
Which Unitholders are eligible for this tax refund?
Eligible Unitholders are:
- Individuals holding Keppel REIT Units through Depository Agents and have received distributions after withholding tax deduction at prevailing corporate tax rate instead of at gross;
- Qualifying non-resident non-individuals2whose Keppel REIT Units are held through Depository Agents or in their own name and have received distributions after withholding tax deduction at prevailing corporate tax rate instead of 10%. The 10% withholding tax rate is applicable only in respect of distributions made during the period from 28 August 2006 to 31 December 2025;
- Qualifying non-resident funds3whose Keppel REIT Units are held through Depository Agents or in their own name and have received distributions after withholding tax deduction at prevailing corporate tax rate instead of 10%. The 10% withholding tax rate is applicable only in respect of distributions made during the period from 1 July 2019 to 31 December 2025;
- Exempt non-corporate Unitholders4holding Keppel REIT Units through Depository Agents or in their own names.
For other categories of Unitholders, they will need to claim a refund of the withholding tax over-deducted, if any, when filing their tax return.
Please note that Keppel REIT's first distribution after listing was made on 28 August 2006.
How to make a claim?
If you are a qualifying non-resident non-individual,qualifying non-resident fund or an exempt non-corporate Unitholder holding Keppel REIT Units in your own name,
- download and complete Form R1. Use a separate Form R1 for each income distribution period.
- submit the duly completed Form R1, accompanied by the Singapore Tax Certificate (“STC”) or the Account Statement/ Annual Dividend Statement ("ADS") issued by The Central Depository (Pte) Limited ("CDP") which reflects the distribution in respect of the claim for tax refund being made, to Boardroom Corporate & Advisory Services Pte. Ltd. at 1 HarbourFront Avenue, Keppel Bay Tower, #14-07, Singapore 098632.
If you are an individual, a qualifying non-resident non-individual, qualifying non-resident fund or an exempt non-corporate Unitholder and you hold Keppel REIT Units through Depository Agents, please liaise with your Depository Agent on your claim for tax refund. The claim will be made on your behalf by your Depository Agent.
If you are a Depository Agent and wish to make a claim on behalf of beneficial owners who are individuals, qualifying non-resident non-individuals, qualifying non-resident funds or exempt non-corporates,
- download and completeForm R2, including Annexes 1 to 3. Use a separate Form R2 for each income distribution period.
- submit the duly completed Form R2, accompanied by the Subsidiary Income Tax Certificate ("SITC") issued for the distribution in respect of the claim for tax refund being made, to Boardroom Corporate & Advisory Services Pte. Ltd. at 1 HarbourFront Avenue, Keppel Bay Tower, #14-07, Singapore 098632.
- email a soft copy of the completed Annexes to Boardroom Corporate & Advisory Services Pte. Ltd. at the following email address:[email protected]
When do we submit Form R1 or R2?
You may submit the Forms and the accompanying STCs, SITCs or CDP Account Statement/ ADS to Boardroom Corporate & Advisory Services Pte. Ltd. at any time.
The Trustee of Keppel REIT will collate the claims for tax refund submitted by Unitholders and the Depository Agents, and upon receipt of the complete set of documents, make a claim for tax refund to the IRAS on a half-yearly basis (in June and December). For example, all Forms received during the period ending 31 December 2018 are expected to be submitted to the IRAS in January/ February 2019. Please use a separate form for each income distribution period.
However, the Trustee reserves the right to end the half yearly tax refund process if it is deemed to be no longer necessary (e.g. change in legislation) with advance notice.
Is there a time limit for the tax refund?
Every claim for tax refund must be made to the IRAS within 4 years from the end of the year of assessment to which the claim relates. For example, for the claim of tax refund in respect of distribution made by Keppel REIT for the period from 1 January 2016 to 31 March 2016 (which relates to the Year of Assessment 2017), the claim must be submitted to the IRAS on or before 31 December 2021.
Unitholders and the Depository Agents must ensure that the relevant Forms are submitted on time to allow the Trustee of Keppel REIT to make the claim for tax refund within the prescribed time limit. For refund which will be time-barred during the year, please ensure the Forms R1 and R2 are received by the Trustee by June of that same year. The IRAS will not process any claim that has exceeded the 4 years time frame.
When will we receive the tax refund?
The tax refund will be paid out to eligible Unitholders/ Depository Agents, subject to approval by IRAS and upon receipt of the tax refund from IRAS by the Trustee of Keppel REIT. For Depository Agents, you can then proceed to make tax refunds to your respective beneficial owners.
The unit registrar will issue a letter for the refund, which will serve as evidence that the tax refund has been made.
| 1 | Or which other date as may be applicable should the duration of the tax concession mentioned herein (i.e. the reduced rate of tax deduction) be subsequently extended. |
| 2 | A qualifying non-resident non-individual is one who is not a resident in Singapore for income tax purposes and:
|
| 3 | Aqualifying non-resident fund is one who is not a resident in Singapore for income tax purposes, qualifies for tax exemption under section 13D, 13U or 13V of the Income Tax Act 1947 and:
|
| 4 | An exempt non-corporate unitholder includes:
|
