Tax Refund

Tax Refund

Distributions made by Real Estate Investment Trusts (“REITs”) listed on Singapore Exchange Securities Trading Limited to individuals, whether foreign or local, is tax exempt. In this respect, the Inland Revenue Authority of Singapore (“IRAS”) has confirmed that all individuals (excluding individuals who derive any distribution through a partnership in Singapore or from the carrying on of a trade, business or profession) will receive their distributions from OUE REIT without tax being deducted at source (“gross distributions”).

Individuals who derive distributions through a partnership in Singapore or from the carrying on of a trade, business or profession are not eligible for this tax exemption and are required to declare the distributions in their income tax returns, notwithstanding that gross distributions have been made to them.

In addition, REITs’ distributions to qualifying non-resident non-individual investors and qualifying non-resident funds are entitled to a reduced rate of tax of 10% for distributions made during the period from 18 February 2005 to 31 December 2025 (both dates inclusive) and 1 July 2019 to 31 December 2025 (both dates inclusive) respectively.

The Manager of OUE REIT (the “Manager”) has established an arrangement to allow eligible Unitholders to use the back-end tax refund procedures to claim for tax over-deducted, if any, from taxable income distributions made to them.

FAQs

1. Which Unitholders are eligible for the tax refund?
2. How to make a claim?
3. When do we submit the Forms?
4. Is there a time limit for the tax refund?
5. When will we receive the tax refund?

1. Which Unitholders are eligible for the tax refund?
The back-end tax refund process is meant for the refund of tax which had been previously withheld at the prevailing corporate tax rate from the distributions to the following Unitholders:
  1. Individuals holding OUE REIT units through a Depository Agent and have received distributions after tax deduction at prevailing corporate tax rate instead of at gross;
  2. Qualifying non-resident non-individuals1 or qualifying non-resident funds2 holding OUE REIT units through a Depository Agent or in their own name and have received distributions after tax deduction at prevailing corporate tax rate instead of 10%; and
  3. Exempt non-corporate Unitholders3 holding OUE REIT units through a Depository Agent or in their own name.
For other categories of beneficial Unitholders, they will need to claim a refund of the tax over-deducted, if any, when filing their tax return.
2. How to make a claim?
  1. If you are a qualifying non-resident non-individual, qualifying non-resident fund or an exempt corporate Unitholder holding OUE REIT units in your own name:
    1. Download and complete Form R1. Please use a separate Form R1 for each income distribution period.
    2. Submit the duly completed Form R1, accompanied by the original Subsidiary Income Tax Certificate ("SITC") or Annual Distribution Statements ("ADS") issued by The Central Depository (Pte) Limited (“CDP”) for the distribution in respect of which the claim for refund is made, to the Unit Registrar:
      Boardroom Corporate & Advisory Services Pte. Ltd.
      1 Harbourfront Avenue
      #14-07, Keppel Bay Tower
      Singapore 098632

  2. If you are an individual, a qualifying non-resident non-individual, a qualifying non-resident fund or an exempt non-corporate and you hold OUE REIT units through Depository Agent, please liaise with your Depository Agent, who will make the claim on your behalf.

  3. If you are a Depository Agent and wish to claim for refund on behalf of beneficial unit owners who are individuals, qualifying non-resident non-individuals, qualifying non-resident fund or exempt non-corporates:
    1. Download and complete Form R2, including Annexes 1 to 3. Please use a separate Form R2 for each income distribution period.
    2. Submit the duly completed Form R2, accompanied by the original SITC for the distribution in respect of which the claim for refund is made, to the Unit Registrar:
      Boardroom Corporate & Advisory Services Pte. Ltd.
      1 Harbourfront Avenue
      #14-07, Keppel Bay Tower
      Singapore 098632
    3. Please email a soft copy of the completed Form R2 and Annexes to Boardroom Corporate & Advisory Services Pte. Ltd. at srs.teamd@boardroomlimited.com.
3. When do we submit the Forms?
You may submit the Forms and the accompanying SITCs or CDP Account Statement/ADS to Boardroom Corporate & Advisory Services Pte. Ltd. at any time. Please use a separate form for each income distribution period.

The Trustee and the Manager of OUE REIT will collate all declarations received and make a claim for tax refund to the IRAS twice a year on 30 June and 31 December. However, the Trustee and the Manager reserves the right to end the half yearly tax refund process if it is deemed to be no longer necessary (e.g. change in legislation) with advance notice.
4. Is there a time limit for the tax refund?
Every claim for tax refund must be made to the IRAS within 4 years from the end of the year of assessment to which the claim relates. For example, for the claim of tax refund in respect of distribution made by OUE REIT for the period from 1 January 2020 to 30 June 2020 (which relates to the Year of Assessment 2021), the claim must be submitted to the IRAS on or before 31 December 2025.

Unitholders and the Depository Agents must ensure that the relevant Forms are submitted on time to allow the Trustee to make the claim for tax refund within the prescribed time limit.

For refund which will be time-barred during the year, please ensure the Forms R1 and R2 are received by the Trustee by June of that same year. The IRAS will not process any claim that has exceeded the 4-year time frame.
5. When will we receive the tax refund?
The tax refund will be paid to the Depository Agents and Unitholders as soon as practicable after the receipt of the tax refund from the IRAS by the Trustee.
  1. A qualifying non-resident non-individual is one who is not a resident in Singapore for income tax purposes and:
    1. who does not have any permanent establishment in Singapore; or
    2. who carries on any operation in Singapore through a permanent establishment in Singapore, but the funds used to acquire the units in OUE REIT are not obtained from that operation.
  2. A qualifying non-resident fund is one who is not a resident in Singapore for income tax purposes, qualifies for tax exemption under section 13D, 13U or 13V of the Income Tax Act 1947 and:
    1. who does not have any permanent establishment in Singapore (other than the fund manager in Singapore); or
    2. who carries on any operation in Singapore through a permanent establishment in Singapore (other than the fund manager in Singapore), but the funds used to acquire the units in OUE REIT are not obtained from that operation.
  3. An exempt non-corporate unitholder includes:
    1. a charity registered under the Charities Act 1994 or established by any written law;
    2. a town council;
    3. a statutory board;
    4. a co-operative society registered under the Co-operative Societies Act 1979;
    5. a trade union registered under the Trade Unions Act 1940;
    6. an international organisation that is exempt from tax on such distributions by reason of an order made under the International Organisations (Immunities and Privileges) Act 1948; and
    7. a real estate investment trust exchange-traded fund which has been accorded the tax transparency treatment.