SINGAPORE (Apr 16): On Apr 16, the Ministry of Finance (MOF), the Inland Revenue Authority of Singapore (IRAS), and the Monetary Authority of Singapore (MAS) announced that MOF and IRAS will extend the timeline for S-REITs to distribute at least 90% of their taxable income from 3 months to 12 months after the end of their FY2020 to qualify for tax transparency.

To avail REITs of their tax transparency treatment for FY2020, REITs with year-end March 31, 2020 and Dec 31, 2020 will have up to March 31, 2021 and Dec 31 2021 respectively, to distribute to their unitholders at least 90% of their taxable income derived in FY2020.

REITs are able to have tax transparency because they pay out 90% of their distributable income. But this leaves them with no retained earnings to weather a crisis.

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook