MCT – BT

MCT unveils tax refund scheme for unitholders

UNITHOLDERS of Mapletree Commercial Trust (MCT) will be able to use back-end tax refund procedures to claim over-deducted tax on income distributions.

This follows an arrangement established with the Inland Revenue Authority of Singapore (IRAS), MCT’s manager Mapletree Commercial Trust Management said yesterday.

According to the arrangement, foreign non-individuals holding MCT units directly, or individuals and foreign non-individuals whose MCT units are held through a depository agent, and who have had their distributions taxed, are eligible under the scheme.

Under the latter category, refunds have to be claimed by the respective depository agents.

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 over-deducted tax.

Distributions made by real estate investment trusts (Reits) listed on the Singapore Exchange to individuals, whether foreign or local, are tax exempt, except for individuals who derived the distributions from the carrying on of a trade, business or profession, or from a partnership in Singapore.

Reits’ distributions to foreign non-individual investors on the other hand are entitled to a reduced tax rate of 10 per cent for distributions made from Feb 18, 2005 to March 31, 2015.

The back-end refund is applicable to MCT distributions made on or after April 27.

To make a claim for refund, unitholders need to supply the appropriate forms and subsidiary income tax certificates (SITCs). The trustee and manager will file a claim for refund with the IRAS on a half-yearly basis.