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REIT - Coggle Diagram

- - - - Dividend (exempt as STD)
      - Interest Y
        
        Taxable fr non buss source
        
        Tax exempt
        
        saving certificate issued by Gov
        
        securities/bonds issued/guaranteed by Gov
        
        debentures, other unconvertible/convertible loan stock, approved by SC
        
        bon Simpanan Mas issued by BNM
    - - Rental (taxed as single buss Y)
      - Capital gains
        
        Gains from disposal of inv such as properties, shares, bonds not taxable
      - Expenses
        
        wholly & exclusively exp incur for production of rental Y deductible
        
        manager's remuneration deductible
        
        trustee remuneration (admin duty) - not deductible
        
        legal, valuation & consultancy for establishing REITs/PTF prior to approval by SC - deductible
        
        amount deductible exp incur in YA restricted to GI from rental in YA, no CYBL for REIT
      - CA/IBA
        
        Current year CA/IBA set off against adj Y
        
        amount of CA claim restricted to adjusted Y from let property for that YA
        
        Excess CA/IBA cannot c/f
      - Current year loss
        
        current year loss cannot set off against agg Y, it is permanent loss
        
        excess loss cannot c/f
- - - - on REIT
        
        CI is 0
        
        Tax payable is )
        
        entire total Y is tax exempt
      - on unit holders
        
        not R co
        
        REIT shall distribute net distribution (after WT) to unit holders
        
        WT is final tax, no need for unit holders to report distribution to ITRF
        
        REIT has to deduct WT from distribution at rates
        
        R+NR indiv = 10%
        
        Foreign institutional investor = 10%
        
        NR co - 24%
        
        R co
        
        not applicable to R corporate unit holder
        
        distribution to R co is still subject to tax
        
        R co will receive gross distribution
        
        gross distribution will be reported in return of R co & taxed at appropriate tax rate for R co
    - - not eligible to claim SS10 tax credit set off as the REIT did not pay any tax on total Y, no double tax
  - - - REIT has paid tax, each unit holder is able to claim S110 tax CR set off against their tax payable to avoid double tax
    - - on REIT
        
        CI = total Y
        
        tax payable is 24% of CI
        
        entire total Y is taxable
        
        no WT applicable on distribution
      - on unit holders
        
        has to be reported as Y by all unit holders in respective ITRF and subject to tax