Investor Relations
Tax Refund Procedures

The Manager has established an arrangement with the Inland Revenue Authority of Singapore ("IRAS") to allow eligible MIT Unitholders to use the back-end tax refund procedures to claim for over-deducted tax on income distributions from MIT.

Background

Distributions made by REITs listed on the Singapore Exchange to individuals, whether foreign or local, are tax exempt. In this respect, the IRAS has confirmed that all individuals will receive their distributions from MIT without tax being deducted at source (gross distributions). Individuals who derived the distributions from the carrying on of a trade, business or profession or from a partnership in Singapore are not eligible for this tax exemption and are required to declare the distributions in their income tax returns, notwithstanding that gross distribution have been made to them.

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 2020 (both dates inclusive).

Where tax has been deducted from distributions made at a higher rate than the applicable tax rate, eligible Unitholders may claim a refund of the tax over-deducted from the IRAS through the Trustee and Manager.

Categories of Eligible Unitholders

  1. The back-end refund procedures allow beneficial Unitholders of the following categories to make a claim for refund of any tax over-deducted from MIT’s distributions (see paragraph 3 for the eligible distributions):
    1. a foreign non-individual holding MIT units directly; or
    2. an Exempt Non-corporate Unitholder holding MIT units directly; or
    3. an individual or a foreign non-individual or an Exempt Non-corporate Unitholder whose MIT units are held through a Depository Agent. Refunds in this category are to be claimed by the respective Depository Agent.

      Other categories of beneficial Unitholders will need to go through the normal process of tax return filing to claim a refund, if any, of the tax over-deducted.
  2. A foreign non-individual refers to a MIT Unitholder (other than an individual) who is not a resident of Singapore for income tax purposes; and:
    1. who does not have a permanent establishment in Singapore; or
    2. who carries on any operation in Singapore through a permanent establishment in
      Singapore, where the funds used to acquire the units in MIT are not obtained from that operation.
  3. An Exempt Non-corporate Unitholder is one who is:
    1. a charity registered under the Charities Act (Cap. 37) or established by any written law; or
    2. a town council; or
    3. a statutory board; or
    4. a co-operative society registered under the Co-operative Societies Act (Cap. 62); or
    5. a trade union registered under the Trade Unions Act (Cap. 333); or
    6. an international organisation that is exempt from tax on such distributions by reason of an order made under the International Organisations (Immunities and Privileges) Act (Cap. 145).

Applicable MIT Distributions

  1. The back-end refund would be applicable to the following MIT’s distributions:
    1. in relation to beneficial Unitholders who are individuals or Exempt Non-corporates, distributions made by MIT on or after 21 October 2010. As mentioned, all individuals are entitled to receive their distributions from MIT without tax being deducted at source and therefore if tax had been deducted from the distributions made to them, they are entitled to a refund of the tax deducted. However, individuals who derived the distributions from the carrying on of a trade, business or profession or from a partnership in Singapore are required to declare the distributions in their income tax returns as such distributions are liable to tax in their hands; and
    2. in relation to beneficial Unitholders who are foreign non-individuals, distributions made by MIT during the period from 21 October 2010 to 31 March 2020 (both dates inclusive). Foreign non-individuals are taxed at a reduced rate of 10% on such distributions and therefore if tax had been deducted at the standard corporate tax rate (currently 17%) from the distributions made to them, they are entitled to a refund of the tax over-deducted.

Documents to be submitted

  1. To make a claim for refund, the following documents are required:
    Form Category of Eligible Unitholders
    Form R1
    1. Foreign non-individual investors who hold MIT units directly
    2. Exempt Non-corporate investors who hold MIT units directly

    Form R2 

    Annex 1

    Annex 2 

    Annex 3

                         

    1. Individuals; 
    2. Foreign non-individual investors; and 
    3. Exempt Non-corporate investors who hold MIT units through Depository Agents

    1. Form R1-- Foreign non-individual investors are required to complete Form R1 for each income distribution period

      Form R2 (Depository Agents) -- Depository Agents are required to make the declaration on Form R2 and to furnish the particulars of the beneficiaries on whose behalf the claim is made in the appropriate annexes (Annex 1,  Annex 2 or Annex 3) to the Form. Please use a separate Form R2 for each income distribution period;
    2. Subsidiary Income Tax Certificates (SITCs)

      Each claim for refund has to be substantiated by the SITC that were issued for the distribution in respect of which the refund is claimed. IRAS will verify the claim against the SITC and therefore the SITC must show, among other things, the name of the individual or foreign non-individual who is beneficially entitled to the distribution.
  2. Every claim of refund must be made to IRAS within 4 years from the end of the year of assessment to which the claim relates. For example, for claim of refund in respect of distribution made by MIT for the period from 21 October 2010 to 31 December 2010 (which relates to the year of assessment 2012), the claim must be submitted to the IRAS on or before 31 December 2016.
  3. Please note that the declaration status of the beneficiary or beneficiaries of the units deposited in a particular sub-account (i.e. individuals/ foreign non-individual investors) must be properly substantiated. Depository Agents must ensure that the appropriate documents to support the declaration are available. Where the units are held through more than one tier of nominees, please note that the confirmation must be from the ultimate beneficiaries. Please also ensure that you keep records of the amount of distributions made to each beneficiary as the IRAS may require such information.
  4. Please submit the duly completed Forms and the accompanying SITCs to Boardroom Corporate & Advisory Services Pte. Ltd., 50 Raffles Place, #32-01 Singapore Land Tower, Singapore 048623. In addition, please email a soft copy of the completed Annexes to Boardroom Corporate & Advisory Services Pte. Ltd. at SHS-SD@boardroomlimited.com.
  5. Applicants may submit the forms and the accompanying SITCs at any time. The Trustee and the Manager will file a claim for refund with the IRAS on a half-yearly basis. For example, all claims received by Boardroom Corporate & Advisory Services Pte. Ltd. during the half-year ending 31 December 2015 will be compiled and submitted to the IRAS in January/February 2016.
  6. The amount of tax over-deducted will be refunded only after the IRAS has refunded this amount to the Trustee of MIT.
INVESTOR RELATIONS CONTACT

Ms Melissa Tan
E: ir_industrial@mapletree.com.sg

SUBSTANTIAL UNITHOLDER ENQUIRIES
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