The recent Budget 2018 was a momentous one for REIT ETFs, as it accorded tax transparency status for REIT ETFs from 1 July 2018.
Before this change, REIT ETFs receiving distributions from a Singapore listed REIT with Singapore properties would be subject to a 17% income tax. This meant that an average dividend yield of about 5.8% was reduced to 4+ %, basically destroying the ETF as an effective investment vehicle.
Given that this major regulatory hurdle has been removed, are REIT ETFs now a viable option to invest in S-REITs?
[Note: 05 March 2018] This article was amended on 5 March 2018 pursuant to feedback from Nikko AM in relation to the method by
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