Not pay tax on dividends la.

Who says so

It is only no double tax collected by the Govt mah

1) Co pays tax, so u do not have to pay one more time on Dividends collected aka tax collected at source .............

2) For reits, co does not have to pay, you too do not have to pay tax, same as 1 meh

This post has been edited by SKY 1809: Jun 13 2013, 12:26 PM

If I knew the answer I wun ask here right. Hai yo. Because I read that Company only pay Corporate Tax. So we do not need to pay for the tax on the dividend being paid to us anymore. So how much more tax is being paid in SGX normal shares then.

This post has been edited by sylar111: Jun 13 2013, 12:36 PM

From the same income ( source ) point of view and As a shareholder, your co or your asset is taxed at source.

U recd Dividend at net ( after tax ) .

LPPL

This post has been edited by SKY 1809: Jun 13 2013, 12:47 PM

Dun tell me that this does not apply to REITS. I am pretty sure that REITS are also taxed. Just that the dividends are not taxed. If they are taxed then how much lesser they are taxed. Or their profits are not taxed at all. Which makes very little sense.

So basically company pays corporate tax. Then the dividends are taxed again before they come to us. But for REITS, the dividends are not taxed at all.

This post has been edited by sylar111: Jun 13 2013, 12:52 PM

Aiyah, u check lah IF S reits pay more than 90% of their profits as Dividends ,they do not need to pay tax lah.

Of course there is a condition attached , but not a hard one to achieve.

I spend u Teh Tarik if I am wrong , ok ?

No point fighting fighting here .

This post has been edited by SKY 1809: Jun 13 2013, 12:56 PM

No..thats why REits are given special status.
Otherwise why bother?

I don't have to pay any taxes on my divs whereas Msian Reits apply a 10% withholding tax on Divs

SREITs – DBSV

As the dust settles, value emerges

Rising bond yields generally negative; but S-REITs’ ability to grow distributions a compensating factor

Impact of rising bond yields more “expected than real”

Buy Growth. Picks MCT, MAGIC, FCOT and Cache


S-REITs’ ability to grow distributions to compensate for rising bond yields/interest costs a key consideration. We believe that fears of the impact of rising bond yields on S-REITs are an over-reaction at this point as our economists do not expect QE to taper off anytime soon. Over the medium term, a rise in long bond yields is likely to be more gradual than abrupt and S-REITs’ continued ability to grow distributions (estimated at 4.0% y-o-y) is a compensating factor. Thus, we believe that the knee-jerk reaction seen in the S-REITs’ share prices (FSTREI index was down 10% YTD vs STI 5% dip in the past few weeks) is unwarranted.


Impact of rising bond yields “more expected than real”. We have assessed the impact of rising bond yields on our target prices, and the conclusions are: (i) Our analysis indicates that SREIT yield spread of 3.9% based on current share prices have factored long bonds of >2.5%. Prior experience shows that SREITs trade at a 350-390 bps spread when long bonds were above 2%. (ii) Impact from higher interest costs is managable at <3%. Active capital management has resulted in most S-REITs locking in >50% of their debt costs for the next 1 – 2 years. We estimate a 0.5% increase in interest rates to have a <3% impact on distributions, which we see as managable. (iii) NAVs appear safe for now. Worries of cap rate expansion impacting S-REITs’ book values negatively are valid but we do not see it as a concern at this point. Other than for office, we note that higher valuations for S-REIT portfolios (retail, industrial sub-sectors) are underpinned by higher income, which we believe make S-REITs’


NAVs more resilient.


Translation losses a potential risk. The INR, AUD and JPY weakened 2%, 7% and 27% against the S$ respectively since the start of 2013. Thus, S-REITs with exposures in these currencies might see earnings downside and NAV declines from translation losses. From the earnings front, we note that most SREITs have taken hedges to minimize impact.


S-REITs sell-off is over-done, Selective BUYs. We have been advocating a selective stance, and limit our picks to REITs which offer growth that is achievable and visible. We like Magic (BUY, TP S$1.22), MCT (BUY, TP S$1.53), FCOT (BUY TP $1.69) and Cache (BUY, TP S$1.47) for their better than peers’ growth prospects. We have also upgraded A-REIT (BUY, TP S$2.60) and MINT (BUY, TP S$1.63) from HOLD to BUYs on valuation grounds.

I do not know why many reit investors are not aware of the above.



This post has been edited by SKY 1809: Jun 13 2013, 01:43 PM

They don't do their DD?

To me, paying less tax is a way to overstress your dollars a bit more.

Look at what Apple is doing to its cash , maybe another story not linked to reits

ok. No wonder they can give so great returns.

I am not a REIT investor. I am just pondering on what are the benefits SPH enjoys when they created the new REIT. I can see very little change to the general management and the only benefit that I see is the tax benefits. I want to know whether when they reduce their holdings of their property, they can indeed still enjoy the same rate of income from their property assets even after their reduced holdings.

But it is still hard to imagine that REIT holders enjoy tax free profits.

Sreit The dividend receive was not tax, MY one need to tax 10% witholding tax.....thats it close topic......

can apply through local bank or have to open bank acc at sg to buy the reit?

NO, unless ur premier banking accout holder and provided there got branch if not answer is no........ can buy thru local brokerage less hassle but higher commision for brokerage biasalah charge two side mah ......

Local brokerage such as cimb investment bank?

Yes......

i see, thks very much.

SREITS – DBSV


Price action indicates AREIT may show more resilience compared other S-REITs


US stocks ended lower and treasuries yield inched higher as concerns about QE3 continued to weigh. Investors will closely monitor the FED statement at the outcome of the FOMC meeting next Wednesday night. With triple witching


(expiration of stock index futures, stock index options & stock options) next Friday, US equity indices will be rocky, either way, over the next one week. China and HK markets re-open today.


S-REITs have been one of the worst affected in recent weeks as investors sold down yield names on concerns about QE drawdown. Recall that QE3 was announced in Sept last year. A check back on the price action shows that in line with STI’s


U-turn up, many S-REITs started to further their climb from last November as they benefited from the liquidity inflows.


S-REITs that have declined back to their respective Nov12 lows in the current correction would have effectively reversed and wiped out all the positive price action from the liquidity inflow prior to their decline. Chances are these would be


more resilient going forward compared to those that have yet to decline to their respective Nov12 levels. One SREIT that has fallen back to Nov12 level is AREIT. The stock’s Nov12 low is at $2.28. The stock undershoot that level yesterday to $2.22 but in an indication of bargain hunting, returned back to $2.30 by day’s end. Our analyst upgraded the stock to Buy earlier this week. We expect shares of AREIT to show more resilience going forward compared to other S-REITs. One


example of a S-REIT that has yet to fall to its Nov 12 low level, and thus more vulnerable to weakness, is Cambridge. The stock’s Nov12 month low was around $0.64.