Amfirst posted a quite good result, 2.24 cents for the lastest Q.

I checked with my broker though, she mention that Amfirst has no history of issuing dividend so i chicken out last minute. Instead queue for Atrium and Axreit but both transaction also no takers due to unexpected market uptrend.  miss boat again. 

I checked with my broker though, she mention that Amfirst has no history of issuing dividend so i chicken out last minute. Instead queue for Atrium and Axreit but both transaction also no takers due to unexpected market uptrend.  miss boat again. 

That's bullshit, and unprofessional. No offence. Next time ask lyn forumers is much better.  Just joking.

I had already got it for the financial year ended 31/3/08 one.
This 30/9 will be another semi-annual.

Every reit has to distribute at least 90% of the earning. So surely got distributin if making money.

Witholding tax for local has been reduced from 15% to 10%, while foreigner from 20% to 10%, indeed a good news for reit. 

  That means there's no benefit of being a local?????????????

WTF!!!  

Witholding tax for local has been reduced from 15% to 10%, while foreigner from 20% to 10%, indeed a good news for reit. 

I'm interest with REIT due to high dividen .
1. The "10%" is what actually ?
2. Do we need to submit income tax if we gain profit/dividen from REIT ?

The 10% is the tax from your earning from REIT. For every declared RM1 dividend that you get from REIT, you need to pay RM0.10 tax, leaving you with RM0.90

The tax is "auto deduct" when we received dividen or we need to submit to income tax ourself ?

It is witholding tax, it is pre-deducted aka you cheque received is net amount already.

Just to make sure , that mean we no need submit it to income tax right (as share) ?

i also not sure, can anyone else answer this? neo? pana? cherroy?

I got my axreit div check today potong 15% WHT..

Planning on more Axreit or Atrium but need wait see company give bonus for raya or not ...

as far as i know, starting from 1st Jan 09, our tax will be only 10%, correct boh?

By Jennifer Chang, Senior Executive Director
Enhancement of tax transparency system

The tax transparency system for REITs was introduced with effect from year of assessment 2006. Under the system, where a REIT distributes income to investors, the REIT need not pay income tax on its taxable income; instead investors will pay the tax on their portion of taxable income received from the REIT, depending on their own marginal rates of tax. This system ensures that investors bear the tax on investment income from REITs. Any undistributed income will continue to be taxed at REIT level.The tax transparency system has been further enhanced in Budget 2007. Where the REITs distribute at least 90% of income to investors, the REITs will be fully exempted. This has two main benefits. Firstly, it encourages REITs to distribute income to investors thereby ensuring higher yields to investors; and secondly, the REITs that distribute 90% or more income need not monitor whether income has been taxed or not, thereby reducing administrative burden.

What is interesting to note is that if a REIT does not distribute at least 90% of its income to investors, the tax transparency system will not apply to the REIT. This will obviously encourage REIT managers to distribute at least 90% of income to investors, thus providing investors more certainty of the yields from their investments in REITs.

Such enhancement to tax transparency is indeed welcome as it is globally in line with the tax system of REITs in most foreign jurisdictions.

Reduction of investors’ tax

The next tax initiative in this area is the reduction of tax on REIT investors. Due to the tax transparency system, investors are taxed based on their own marginal tax brackets. This would mean that distributions received by a high net worth individual would be taxed at a higher tax rate compared with those of a retired individual, while a foreign investor is taxed through a 28% withholding tax mechanism.

Budget 2007 provides tax incentives to entice specific investors to the Malaysian REIT market through the reduction of tax on the investors. It has proposed that distribution received by individuals be subject to a withholding tax of 15% and that received by foreign institutional investors be reduced to 20% from 28% before.
The proposed reduction of withholding tax will be effective from Jan 1, 2007 and will be for five years.

The main beneficiaries of the tax reduction will be foreign institutional investors, foreign individuals as well as other non-corporate local entities. Only higher tax paying Malaysian individuals will benefit from the reduction. This could be in tune with the current investor profile for REITs. Such tax reduction will certainly make REITs an attractive investment choice and enhance the competitiveness of Malaysian REITs globally.

Without doubt, the tax incentives proposed in Budget 2007 would enhance our Malaysian REIT market. Such tax incentives are part and parcel of the aspirations to secure Malaysia as an International Islamic financial centre and will provide viable products for investments in the Malaysian market.

The writer is a senior executive director at PricewaterhouseCoopers Taxation Services Sdn Bhd