CSOP iEdge S-REIT ETF Announces Dividend Distribution and Taxation Details

CSOP Asset Management Pte. Ltd., the manager of the CSOP iEdge S-REIT Leaders Index ETF, has released an important update regarding dividend distribution for its unitholders. This announcement outlines the dividend amount, key dates, and taxation details that may impact investors in the fund.

Key Highlights of the Announcement

• Dividend Amount: The declared dividend is S\$0.022 per unit for the period from 1 July 2024 to 31 December 2024.
• Distribution Breakdown:
  • Taxable Income Component: S\$0.009795 per unit
  • Tax-Exempt Income Component: S\$0.005031 per unit
  • Capital Component: S\$0.007174 per unit
• Distribution Dates:
  • Ex-Dividend Date: 20 January 2025
  • Record Date: 21 January 2025
  • Distribution Payment Date: 24 February 2025

Taxation Details for Unitholders

CSOP emphasized that the tax treatment of the distribution varies depending on the unitholder’s classification. Below are the key points:

1. Tax Exemptions

The tax-exempt component of the distribution is fully exempt from tax for all unitholders. No tax will be deducted at source for this portion.

2. Categories of Unitholders Receiving Gross Distribution

The following unitholders will receive the taxable income component without tax deductions:

• Individuals holding units in their sole names or jointly with others
• Singapore-incorporated and tax-resident companies
• Singapore-based branches of foreign companies
• International organizations with tax exemptions under the International Organisations (Immunities and Privileges) Act 1945
• Non-corporate entities registered in Singapore, such as statutory boards, co-operative societies, trade unions, charities, and town councils

Unitholders in categories (b) to (e) must submit the “Declaration for Singapore Tax Purposes Form” (Form A) by 5:00 PM on 6 February 2025 to qualify. Failure to submit this form will result in tax deductions at the prevailing corporate tax rate of 17%.

3. Tax Rate for Foreign Non-Individual Unitholders

Foreign non-individual unitholders and foreign funds will have tax deducted at a reduced rate of 10%, provided they submit the relevant sections (D or E) of Form A by the specified deadline. Failure to submit the form will result in tax deductions at the 17% corporate tax rate.

4. Depository Agent Requirements

Beneficial owners holding units through depository agents must ensure their agents complete the “Declaration by Depository Agents for Singapore Tax Purposes Form” (Form B) and submit it by the same deadline to qualify for gross or reduced-tax distributions.

5. Special Cases

Unitholders investing through the Central Provident Fund Investment Scheme and the Supplementary Retirement Scheme do not need to return any forms and will automatically receive the gross distribution.

Potential Impact on Share Value

This announcement may influence the ETF’s share value due to its transparency on dividend distribution, tax implications, and the clear distinction between taxable and tax-exempt components. Investors may view the dividend as an attractive yield opportunity, which could bolster trading activity leading up to the ex-dividend date.

Deadlines to Note

• Forms Sent Out: 23 January 2025
• Deadline for Submission: 6 February 2025, 5:00 PM

Unitholders are encouraged to seek independent tax advice if they are unsure about their eligibility or obligations under the taxation guidelines provided in this announcement.

Issued by: CSOP Asset Management Pte. Ltd. on 10 January 2025.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Investors are encouraged to consult financial advisors to determine the suitability of investments, as all investments carry inherent risks, including potential loss of principal. Past performance is not indicative of future results. The ETF’s units may trade at prices different from their net asset value and are subject to market conditions, suspension, or delisting.