CapitaLand Integrated Commercial Trust (CICT)

[zerobeta]

I have a question, sorry if it sounds stupid:

I notice they pay no tax at all. Are Singapore-based REITs entitled for tax exemption?

[gzbkel]

Yes, if they distribute at least 90% of the income.

However, tax exemption may expire for foreign income after March 2015.
http://www.kpmg.com/SG/en/SingaporeBudge...40218.html

[CY09]

Hi all,

A very detailed analysis on CMT has been written by a blogger.

http://sreitsysteminvestor.blogspot.sg/2...lysis.html

What I have discussed on tenures and the issue on cap rate is discussed in point A. What is only lacking is how much CMT retains; CMT has never distributed 100% of its amount available for distribution over the past 3 years, preferring to keep some for general working and future purposed. It shows prudent management.

It is interesting to learn that CMT's cap rate is higher than FCPT, not sure if it is a mistake by the author or otherwise. Tampines Mall and CauseWay point are near direct comparable, yet the former's Cap rate is higher than the latter's.

[ashparagon]

Yes, if they distribute at least 90% of the income.

However, tax exemption may expire for foreign income after March 2015.
http://www.kpmg.com/SG/en/SingaporeBudge...40218.html

I have a question. Moving forward, as long as they distribute 90% of the income, this doesn't matter since they are tax exempted anyway?

So this tax exemption for foreign income only applies if they don't distribute 90% of the income? If not it doesn't matter right?

[gzbkel]

If you look at 5.6 of this document, it is stated that tax exemption for foreign income ends in March 2015. I take it to mean that there is no exemption for foreign income regardless of distribution ratio, unless the exemption is extended.

https://www.iras.gov.sg/irashome/uploade...-05-30.pdf

[BlueKelah]

If you look at 5.6 of this document, it is stated that tax exemption for foreign income ends in March 2015. I take it to mean that there is no exemption for foreign income regardless of distribution ratio, unless the exemption is extended.

https://www.iras.gov.sg/irashome/uploade...-05-30.pdf

Is this gonna affect all the other sg listed companies? Many have lots income from overseas

-- via Xperia Z1 with tapatalk

[soros]

S-Reits with properties acquired on or before 31 Mar 2015 located in a foreign country which has tax rate higher than 15% can still continue to claim exemption to S-tax on the foreign income .

[gzbkel]

That particular exemption is for S-REITs specifically.
For companies in general, paragraph 4 of the same document applies I think. (Pls correct me if I am wrong)

If you look at 5.6 of this document, it is stated that tax exemption for foreign income ends in March 2015. I take it to mean that there is no exemption for foreign income regardless of distribution ratio, unless the exemption is extended.

https://www.iras.gov.sg/irashome/uploade...-05-30.pdf

Is this gonna affect all the other sg listed companies? Many have lots income from overseas

-- via Xperia Z1 with tapatalk

[Boon]

That particular exemption is for S-REITs specifically.
For companies in general, paragraph 4 of the same document applies I think. (Pls correct me if I am wrong)

If you look at 5.6 of this document, it is stated that tax exemption for foreign income ends in March 2015. I take it to mean that there is no exemption for foreign income regardless of distribution ratio, unless the exemption is extended.

https://www.iras.gov.sg/irashome/uploade...-05-30.pdf

Is this gonna affect all the other sg listed companies? Many have lots income from overseas

-- via Xperia Z1 with tapatalk

This issue was discussed before under "analysing reits"

See "Grandfathering provision of S-REITs"
http://www.kpmg.com/SG/en/IssuesAndInsig...201413.pdf

[swakoo]

While both reits do retain some quarters, they are both committed to 100% distribution. For the most recent 4 quarters, CMT's dpu is 10.84c while FCT's is 11.44c.

Need to qualify that CMT has excluded it's dividend from CRCT from distributable income from FY2012 onwards. This piece is roughly 0.33c annualised. If we add this to the dpu for most recent 4 quarters, it's 11.17c vs 11.44c.