Suntec REIT Announces Key Distribution Dates and Tax Guidelines for Q4 2024

Suntec Real Estate Investment Trust (Suntec REIT) has announced a distribution of 1.570 cents per unit for the period 1 October 2024 to 31 December 2024. This is broken down into a taxable income component of 1.435 cents and a tax-exempt income component of 0.135 cents. The distribution will be paid on 28 February 2025, with the record date set for 4 February 2025.

Taxation and Declaration Guidelines

The tax treatment varies depending on the category of unitholders:

• Tax-exempt income: This component is exempt from tax for all unitholders, with no tax deducted at the source.
• Taxable income: No tax will be deducted for individuals holding units in their sole names or jointly, Singapore-incorporated companies, Singapore branches of foreign companies, and certain exempt entities like charities, trade unions, and co-operative societies.
• For foreign non-individual investors or foreign funds qualifying under Sections 13D, 13U, or 13V of the Singapore Income Tax Act, a 10% tax will be deducted unless specific conditions are met.

Unitholders who fall within the above categories must complete the Declaration for Singapore Tax Purposes Form A by 17 February 2025. Depository agents holding units on behalf of beneficial owners must complete Form B and its annexes by the same deadline. Failure to submit these forms will result in tax deductions at the prevailing corporate tax rate.

Special Considerations for CPF and SRS Accounts

Unitholders holding units under the Central Provident Fund Investment Scheme (CPFIS) or the Supplementary Retirement Scheme (SRS) do not need to complete any declarations. These unitholders will receive the gross distribution directly into their respective CPFIS or SRS accounts.

Important Dates to Remember

Implications for Unitholders and Investors

This announcement is critical for Suntec REIT unitholders as it outlines the distribution payment and tax guidelines. Investors need to act promptly to ensure they receive the correct distribution amounts, either gross or net. The clarity in tax treatment, especially for foreign funds and exempt entities, provides transparency, which could bolster investor confidence. However, any lapses in submitting the required forms could result in higher tax deductions, potentially impacting the distribution received by unitholders.

Given the stable distribution rate and transparent tax guidelines, the announcement may positively influence Suntec REIT’s share price. Investors are encouraged to assess their tax status and act within the stipulated timelines to maximize their returns.

For further queries, unitholders may contact the Suntec REIT Unit Registrar, Boardroom Corporate & Advisory Services Pte Ltd, or reach out to the representatives listed in the announcement.

Disclaimer

The information provided in this article is for informational purposes only and does not constitute financial advice. Investors are encouraged to consult their financial advisors or tax professionals for personalized guidance. Past performance is not indicative of future results, and investments are subject to risks, including potential loss of principal.