HOW??

It's true.
The tax voucher is for your record, and to substantiate your income in case of a tax audit.
For example, I remember Neo buys alot of REITs. He earns so much reit-dividend income. He doesn't need declare this. Then if he buys property with cash, IRB come knock on his door, ask him, "You declare only so little income, how come you can buy property with cash? You under declare your income is it?". Then Neo shows the IRB officer all his reit-dividend voucher. "Already 10% witholding tax la. See my reit-dividend RM200k. This is where the money comes from to buy the property with cash". IRB officer's eyes almost pop out, says "Ok. case closed."

A hospital converted into a hotel is a good script for a horror movie.
I for one wouldn't stay in a hotel if it's previously used to be a hospital. Imagine how many people died in the same building before. How many people willing, or dare to stay in this hotel?

why is this so?
I mean, why abolishing will induce other players to list?

This post has been edited by simplesmile: Oct 8 2010, 11:48 PM

Do REITs pay some kind of tax like how the companies pay 25% corporate tax?

If not, why would the Government want to do this?
On one hand giving tax deductions, and on the other hand allow tax exempt income?
If like this, what is stopping individual property investors from forming their own mini-reits? Then all the rental income will be tax exempt.

Hmmm, what's the requirement to become a reit? I've read alot about setting up investment holding companies to hold properties, but I've never read one whereby people set up reit to hold their properties.