Keppel REIT Announces 2.80 Cents Per Unit Distribution; Key Tax Details Revealed

Keppel REIT, a prominent real estate investment trust in Singapore, has declared a distribution of 2.80 cents per unit for the period from July 1, 2024, to December 31, 2024. This announcement could potentially draw investor attention as it comprises three components: a taxable income component of 1.53 cents, a tax-exempt income component of 1.01 cents, and a capital gains component of 0.26 cents.

Key Distribution Information

• Record Date: Unitholders must be registered in the Transfer Books and Register of Unitholders or the Depository Register by 5:00 p.m. on February 6, 2025, to qualify for the distribution.
• Payment Date: The distribution will be paid on March 17, 2025.
• The tax-exempt income and capital gains components are not taxable, while tax will be deducted at source for the taxable income component under specific circumstances.

Taxation Details and Requirements

The taxation on the distribution varies based on the unitholder’s classification:

• Exempt from Tax Deduction: Individual unitholders, Singapore tax-resident companies, branches of foreign companies in Singapore, statutory boards, charities, and certain other entities will receive the gross distribution without tax deductions. However, entities in these categories (excluding individuals) must complete and submit the “Declaration for Singapore Tax Purposes Form” (Form A) by February 27, 2025, to confirm their tax-resident status.
• Tax at 10%: Qualifying non-resident non-individual unitholders and funds that meet the criteria for tax exemption under sections 13D, 13U, or 13V of the Income Tax Act 1947 will face a reduced tax rate of 10%. These entities must complete Section D of Form A.
• Default Tax Rate: All other unitholders, including joint holders (excluding individuals) and unitholders who do not submit the required forms, will have tax deducted at the prevailing corporate tax rate of 17%.

Important Deadlines

Unitholders should take note of the following critical dates:

• February 6, 2025: The transfer books and register of unitholders will close at 5:00 p.m.
• February 27, 2025: Deadline to submit completed tax declaration forms (Form A or Form B).
• March 17, 2025: Distribution payment date.

Implications for Shareholders

This announcement highlights the importance of compliance with tax declaration requirements to avoid higher tax rates. Additionally, the distribution of 2.80 cents per unit may attract investor interest, potentially impacting Keppel REIT’s unit price on the SGX-ST. The classification of income into taxable, tax-exempt, and capital gains components further underscores Keppel REIT’s ability to deliver value to unitholders.

Unitholders are advised to seek professional tax advice if required and to ensure all forms are submitted accurately and punctually to avoid unnecessary tax deductions.

Special Note for CPFIS and SRS Unitholders

Unitholders holding units under the Central Provident Fund Investment Scheme (CPFIS) or the Supplementary Retirement Scheme (SRS) are not required to submit any tax declaration forms and will receive the gross distribution automatically.

Disclaimer

The information provided in this article is for informational purposes only and does not constitute financial advice or an offer to purchase securities. Past performance is not indicative of future results. Investors should conduct their own due diligence and consult with financial advisors where necessary before making any investment decisions. Keppel REIT Management Limited and its affiliates do not guarantee the accuracy of this information and disclaim all liability for any losses incurred.