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Tax Refund Procedures

Background

Taxable income distributions made by Real Estate Investment Trusts listed on the Singapore Exchange (“REITs”) to individuals, whether foreign or local, are tax exempt except where such distribution is derived by the individual 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”) allows REITs to make distributions on a gross basis (i.e. without tax deducted at source) to all individuals (excluding individuals who hold their units in the REITs through partnerships). Individuals who derived their distributions from the carrying on of a trade, business or profession are therefore not eligible for the aforesaid 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 certain qualifying unitholders (i.e. non-individuals) can also be made at gross (i.e. without tax deducted at source) and to qualifying foreign non-individual investors and qualifying non-resident funds are subject to a reduced rate of tax of 10% for distributions made on or before 31 December 2025.

In the event that tax has been wrongly deducted and accounted to the Comptroller of Income Tax (“CIT”), the CIT allows eligible unitholders to claim a refund of the tax over-deducted through the trustee of the REIT.

Eligible holders of stapled securities in Ascott Residence Trust (“ART”) can therefore claim a tax refund from the CIT for tax that has been wrongly deducted from taxable income distributions of Ascott Real Estate Investment Trust (“Ascott REIT”) through the trustee of Ascott REIT. The procedures for this back-end tax refund claim are set out below.


Which Stapled Securityholders Are Eligible For This Tax Refund?

Eligible stapled securityholders are:

  1. Individuals holding stapled securities in ART (“ART Stapled Securities”) through a Depository Agent (other than holdings through a partnership); or

  2. Foreign Non-individual (see definition below) holding ART Stapled Securities through a Depository Agent;

  3. Foreign Non-individual holding ART Stapled Securities in their own name; or

  4. Charities registered under the Charities Act (Cap. 37) or established by any written law, town councils, statutory boards, co-operative societies registered under the Co-operative Societies Act (Cap. 62) or trade unions registered under the Trade Unions Act (Cap. 333) or international organisations that are exempt from tax on REIT’s distributions by reason of an order made under the International Organisations (Immunities and Privileges) Act (Cap. 145), collectively referred to as “Exempt Non-corporate Stapled Securityholders”) holding ART Stapled Securities in their own name or through Depository Agents.

How To Make A Claim?

  1. If you are a Foreign Non-individual or an Exempt Non-corporate Stapled Securityholder holding ART Stapled Securities in your own name, Click Here.

  2. If you are an Individual, a Foreign Non-individual or an Exempt Non-corporate Stapled Securityholders holding the ART Stapled Securities through Depository Agents, please liaise with your respective Depository Agent on your claim for the tax refund. The claim will be made on your behalf by your Depository Agent.

  3. If you are a Depository Agent and wish to claim for the Tax Refund on behalf of beneficial owners who are Individuals, Foreign Non-individuals or Exempt Non-corporate Stapled Securityholders, Click Here.