Laying the foundation for more attractive S-REITs and REITs ETFs

Real Estate

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 pool, and are instrumental in the continual promotion of Singapore as a preferred destination in Asia for the listing of S-REITs and REITs ETFs.

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 announcement gives the S-REIT and REIT ETF industry more certainty and peace of mind in structuring their investments. It also allows the industry to have a more accurate projection of cash flows and distributions for the next few years. Further details will be provided by the MAS by May 2019.

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 listings, and continue to provide parity in tax treatments between investing in individual S-REITs and via REITs ETFs.

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.


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