REITS seem to be falling. Looks bad for SPH stake holders.

Just out of curiosity. What are the tax advantages of REITS in Singapore. If say a company decides to convert it's property holdings into a REIT, how much tax benefits will that company enjoy as compared to before. Thanks

But I thought the same apply for all SGX shares.

Not pay tax on dividends la.

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

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

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.