Zakaria?

I read that from 2013 onwards all Reits will be Single Tier, is that right?

Meaning tax on DPUs?

Reits tax is 10%, while ordinary share is 25%.

From 2013 onwards, the tax is factored in to our DPU aka we're on Single Tier.

On top of the mountain

That is why everyone is interested .

Now lorry transporters also want to turn their warehouses into reits.

Meaning 'normal' tax rate at 25%?

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Added on August 15, 2012, 12:46 pmDont ferget the millions of acres of plantation lands..........

This post has been edited by prophetjul: Aug 15 2012, 12:46 PM

Got such terms

Next time I'm gonna pool the rooms in my house into reits

Massage parlour reits

Public Toilets REITs............

Not applicable for REIT, withholding of 10% tax still applicable.

By year 2014, all of the company have to forgo section 108 and apply single tier dividend.

Let me explain in summary:-
Section 108 - Company paid tax at 25%, dividend declare and paid to shareholders, shareholders able to claim/off-set against tax payable in that year assessment.

Single tier - Company paid tax at 25%, dividend paid to shareholders is final, shareholders unable to claim/off-set against tax payable in that year assessment.

You are welcome. We never stop learning, alway look better way to manage risk and improve our yield.

As far as I know, Reit still under witholding tax 10%.

Single Tier applied across company (even private company) from 2013 financial onwards.

Reit if give out more than 90%, they are not subjected to income tax (tax exempted), so single tier issue is not applicable in this situation.

All tax credit is not able to carry forwards (or void).
So those company with tax credit and not giving out dividend before 2013, those tax credit will cease.
Quite a big loss of minority shareholders that not subjected to tax or at lower tax bracket one.

bad for tax payer who tax rate is less than 25%

Thanks mate, thats very clear....looks like tAX man coming soon to yer REITS- malaysian that is.......

i am safe so far in SREITs......Mr Msian TAXman will never let go............thats how we pay for the rest of the 90%
non tax payors..

Reit Co is " qualified " for tax exempt profits for conditions met , so under single tier distribution should be freed from tax .

That is why still got withholding tax at 10% , right.

We can only make inform decision and plan accordingly. But ultimately up there who is the one that determine the outcome loh

Why "withholding"? From what?

But Spore got lot of indirect taxes such as GST and high premium of land lease renewals.

Cannot compare things just above the surface, many taxes hidden under the carpets.

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Added on August 15, 2012, 1:05 pmWithholding is not final, subject to some conditions met.

If not normal tax on dividends to be followed. ( single tier basis )

One is above 90% distribution of operating profits.

This post has been edited by SKY 1809: Aug 15 2012, 01:20 PM

Thats for the REITs to manage....on personal level...the DPUs are tax free provided the REIT pays out min 90% of
profits.

Do they release back the withholding taxes?