NikkoAM-StraitsTrading Asia ex Japan REIT ETF Announces Dividend Distribution of S$0.0117 per Unit
NikkoAM-StraitsTrading Asia ex Japan REIT ETF Dividend Distribution: What Investors Need to Know
The NikkoAM-StraitsTrading Asia ex Japan REIT ETF (the “Fund”) has announced a dividend distribution of S$0.0117 per unit for the period from 1 November 2024 to 31 January 2025. This distribution is subject to tax transparency treatment for distributions received by the Fund from real estate investment trusts or corporations listed on the Singapore Exchange Securities Trading Limited.
Key Points:
Dividend distribution: S$0.0117 per unit
Period: 1 November 2024 to 31 January 2025
Tax transparency treatment applies
Breakdown of distribution:
Qualifying S-REIT distribution: S$0.0022598
Capital component: S$0.0042048
Tax-exempt income: S$0.0019280
Other income and gains from disposal of securities: S$0.0033074
Important Information for Shareholders:
The beneficial owner of this distribution, other than a “Qualifying Individual”, is liable to Singapore Income Tax on the amount of gross income distribution.
A “Qualifying Individual” refers to an individual whose receipt of the distribution is not considered as gains or profits from any trade, business or profession carried on by him/her and is not derived from units held through a partnership in Singapore.
Qualifying foreign non-individual investors will receive their distributions after deduction of tax at the rate of 10%.
All other investors (excluding Qualifying Investors) will receive their distributions after deduction of tax at the rate of 17%.
Tax Implications:
The distribution of S$0.0019280 is tax-exempted, and holders do not have to declare this distribution in their Singapore tax returns.
For holders who hold the units as trading or business assets and are liable to Singapore income tax on gains arising from the disposal of units, the amount of capital distributions should be applied to reduce the costs of the units for the purpose of calculating the amount of taxable trading gains when the units are subsequently disposed of.
Investment Risks:
Investments in the Fund are subject to investment risks, including the possible loss of principal amount invested.
The value of units and income from them may fall or rise.
The Fund may use or invest in financial derivative instruments.
Additional Information:
The Central Provident Fund (“CPF”) Ordinary Account (“OA”) interest rate is the legislated minimum 2.5% per annum, or the 3-month average of major local banks’ interest rates, whichever is higher, reviewed quarterly.
The interest rate for Special Account (“SA”) is currently 4% per annum or the 12-month average yield of 10-year Singapore Government Securities plus 1%, whichever is higher, reviewed quarterly.
Disclaimer:
The information contained in this article is for informational purposes only and should not be relied upon as financial advice. Any securities mentioned herein are for illustration purposes only and should not be construed as a recommendation for investment. You should seek advice from a financial adviser before making any investment. Nikko Asset Management Asia Limited accepts no liability for any loss, indirect or consequential damages, arising from any use of or reliance on this document.
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NikkoAM-StraitsTrading Asia ex Japan REIT ETF Dividend Distribution: S$0.0117 per Unit – What You Need to Know
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