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48 Real Estate Investment Trust - Coggle Diagram
48 Real Estate Investment Trust
Income
received in Msia from outside Msia
Tax exempt
- Para 28 Sch 6
derived from Msia
Non-biz Y
Dividend
- S4(c)
Tax exempt
- STD/exempt dividenf
Int Y
- S4(c)
Taxable
- from non-biz source S4(c)
Tax exempt
- Int Y from
any savings cert issued by
gov
securities/bonds issued/guaranteed by
gov
debentures, other than convertible loan stock approved by Securities Commission
Bon Simpanan Msia issued by Bank Negara Msia
Int from Bank - Para 35A
Biz Y
Rental Y
taxed
as single biz source
Capital gains
disposal of investments
NOT taxable
Expenses
W&E exp - deductible
manager's remuneration - deductible
trustee remuneration (administrative duties only) - X deductible
legal, valuation, consultancy for establishing REIT prior to an approval by SC - deductible
Amt deductible
restricted to gross Y from rental
no CYBL
for REIT
CA/IBA
Current year CA/IBA
set off agnst Adj Y
from rental
Amt for CA claim
restricted to the Adj Y
from rental
excess CA/IBA - X c/f
Current year loss is a
permanent loss
, X set off agnst Agg Y
Excess loss - X c/f
Distribution
Distribution >=90% of total Y
; and
REIT is
listed
Tax imp on REIT
- S61A
chargeable Y = 0, tax payable = 0
entire total Y - tax exempt
Tax imp on unit holders
R/ NR ind, NR Co
REIT
deduct WT
from distribution -> distribution of
net distribution
to unit holders
unit holders
X need
to report distribution in the ITRF
R + NR ind - 10% WT
Foreign institutional investor - 10%
NR Co - 24%
R Co
WT
X applicable
, distribution subj to tax, REIT
X deduct WT
R Co receives
gross distribution
and need to be
reported in Form C + tax applies
X claim S110 tax credit
REIT
X pay tax on total Y
, so
no double tax
Distribution <=90% of total Y
; or
Distribution >=90% of total Y
but REIT is
not listed
- S61A
Tax imp on REIT
entire total Y - taxable
chargeable Y = total Y, tax @ 24%
X WT on distribution
Tax imp on unit holders
distribution reported as Y by
ALL unit holders
in ITRF and
subject to tax
REIT
has pd tax
, each unit holders
can claim S110 tax credit
set off tax payable to
avoid double tax
Grace period
allowed to distribute Y
to
qualify for tax exemption
distribution made during
BP
IF REIT
intend to distribute >=90% of total Y
but has
fallen short of 90% at end of BP
is given
grace period of 2 mths from closing of its a/c
to distribute the balance to
qualify for tax exemption
control transfer for industrial building
- not focus, can refer to notes