CSOP iEdge S-REIT Leaders Index ETF Declares S\$0.022 Per Unit Dividend for H1 2025: Tax Transparency and Key Deadlines Could Impact Unitholders

Key Announcement: The Manager of the CSOP iEdge S-REIT Leaders Index ETF has declared a dividend distribution of S\$0.022 per unit for the period from 1 January 2025 to 30 June 2025. This dividend will be paid solely in Singapore dollars to each registered unitholder.

Important Dates for Unitholders

• Ex-dividend date: 21 July 2025
• Record date: 22 July 2025
• Distribution payment date: 21 August 2025

Dividend Composition and Tax Treatment

The total dividend of S\$0.022 per unit is composed of three components:

• Taxable income component: S\$0.010934 per unit
• Tax-exempt income component: S\$0.004347 per unit
• Capital component: S\$0.006719 per unit

The tax-exempt component is fully exempt from tax in the hands of all unitholders, with no tax deduction at source.

Tax Withholding and Declaration Requirements

Tax will be deducted at source on the taxable income component only, under certain conditions:

1. Gross Distribution (No Tax Deduction): This applies to the following unitholders who must complete the relevant sections of the “Declaration for Singapore Tax Purposes Form” (Form A), except individual unitholders who do not need to submit any form:
   • Individuals holding units solely or jointly
   • Companies incorporated and tax resident in Singapore
   • Singapore branches of foreign companies
   • International organizations exempt by law
   • Specified Singapore non-corporate entities such as statutory boards, co-operative societies, trade unions, charities, and town councils
2. 10% Tax Deduction: Applies to foreign non-individual unitholders or foreign funds, defined as entities not resident in Singapore for tax purposes and without or with certain permanent establishments, when funds used are not derived from Singapore operations. These unitholders are required to complete Section D or E of Form A to receive distribution net of tax.
3. 17% Tax Deduction: Applies to unitholders not falling under the above categories who do not submit Form A, resulting in tax withheld at the prevailing corporate tax rate.

Form Submission and Deadlines

Form A (for unitholders) and Form B (for depository agents) will be dispatched on or around 24 July 2025. To avoid automatic 17% tax deduction on taxable distribution income, forms must be completed legibly and received by the Processing Agent by 5:00 p.m. on 5 August 2025. Failure to comply will result in tax withholding at 17%.

Unitholders holding units under the Central Provident Fund Investment Scheme and the Supplementary Retirement Scheme are exempt from submitting forms and will receive gross distributions.

Market and Investment Implications

The dividend distribution, being partly out of capital, will reduce the ETF’s available capital for reinvestment and may lead to an immediate decrease in the net asset value (NAV) of the ETF. Investors should note that:

• The dividend components and tax treatment may affect the net returns received by different categories of unitholders.
• Tax withholding could materially impact foreign investors and those who fail to submit the requisite declaration forms on time.
• The ex-dividend date of 21 July 2025 will be a key date potentially impacting share price as the market adjusts for the dividend payout.
• Investors must be aware of the deadlines and tax filing requirements to optimize their net income from this distribution.

Additional Important Information for Investors

The ETF units are traded on the Singapore Exchange, and their market price may diverge from the NAV. Units cannot be purchased or redeemed directly from the Manager but only via the SGX or Participating Dealers. Dividend distributions are discretionary and not guaranteed, and past performance or forecasts do not indicate future results.

The ETF may use financial derivatives, and investments carry risks including possible loss of principal. Investors are strongly advised to review the prospectus and consult financial advisers before investing.

Summary

The announcement of the mid-year dividend by the CSOP iEdge S-REIT Leaders Index ETF is a significant event for shareholders, with detailed tax transparency disclosures and strict form submission deadlines that can materially affect the net dividend income and the ETF’s NAV. The 21 July 2025 ex-dividend date is likely to be price sensitive. Unitholders should ensure timely compliance with tax declaration requirements to avoid higher tax withholding.

Disclaimer: This article is for informational purposes only and does not constitute financial advice or a recommendation to buy or sell securities. Investors should seek independent professional advice tailored to their individual circumstances. The Manager and the publisher accept no liability for any loss arising from reliance on this information. Past performance is not indicative of future results.