In light of the challenges that real estate investment trusts (REITs) in Singapore are facing, the Monetary Authority of Singapore (MAS) has stepped in to relax the regulatory constraints for REITs. This is extremely timely and is welcome news for worried REIT investors.
In this article, I’ll summarise some of the key changes and what it means for REITs.
Extension of permissible time for REIT to distribute its taxable income.REITs in Singapore are required to distribute at least 90% of their taxable income to unitholders to qualify for tax transparency treatment. Under the tax transparency treatment, a REIT is not taxed on its income that is distributed to unitholders.
Previously, REITs had to distribute this amount within 3 months of the end of its financial year. But MAS has now extended the deadline to 12 months for this financial year.
What does this mean for REITs?This
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