Laying the foundation for more attractive S-REITs and REITs ETFs
Building S-REITs and REITs ETFs as attractive investments
- Existing income tax concessions for Singapore-listed Real Estate Investment Trusts (S-REITs) and REITs Exchange Traded Funds (ETFs), as well as GST remission for S-REITs, will be extended to 31 December 2025.
- The sunset clause for income tax exemptions on S-REITs and REITs ETFs distributions received by individuals will be removed.
- Certain qualifying non-resident funds will also enjoy the 10% concessionary tax rate (applicable to qualifying non-resident non-individuals) for S-REITs and REITs ETFs’ distributions made between 1 July 2019 and 31 December 2025.
Making S-REITs and REITs ETFs more attractive and opening up investments
The above changes make S-REITs and REITs ETFs a more attractive investment to a wider investor
Allow for a more accurate projection
While it is worth noting that the existing concessions were due to expire only on 31 March 2020, this early
Singapore as the preferred hub
The extension of the existing concessions will continue the push to promote Singapore as a preferred jurisdiction for REIT and REIT ETF
Attracting more investors
Many individual investors in Singapore invest in REITs as a source of recurring passive income. As such, the removal of the sunset clause is undoubtedly a welcome move, particularly for retirees.