Tax

Background

Taxable income distributions made by Real Estate Investment Trusts ("REITs") listed on the Singapore Exchange to individuals, whether foreign or local, are tax exempt except where such distribution is derived by the individual through a partnership in Singapore or from the carrying on of a trade, business or profession. In this respect, the Inland Revenue Authority of Singapore ("IRAS") allows REITs to make such distributions on a gross basis (i.e. without tax deducted at source) to all individuals (excluding individuals who hold their units in the REITs through partnerships). Individuals who derive their distributions from the carrying on of a trade, business or profession are therefore required to declare the distributions in their income tax returns, notwithstanding that gross distributions are made to them, as they are not eligible for the aforesaid tax exemption.

In addition, taxable income distributions can also be made at gross (i.e. without tax deducted at source) to certain Qualifying Non-Individual Unitholders while taxable income distributions made on or before 31 December 2025¹ to Qualifying Non-Resident Non-Individual investors and Qualifying Non-Resident Funds may be subject to a reduced rate of tax of 10%.

In the event that tax has been wrongly deducted and accounted to the Comptroller of Income Tax (“CIT”), the CIT allows eligible unitholders to claim a refund of the tax over-deducted through the trustee of the REIT.

Eligible unitholders of units in Lendlease Global Commercial REIT (“LREIT”) can therefore claim a tax refund from the CIT for tax that has been wrongly deducted through the trustee of LREIT.

Eligible Unitholders are:

1. Individuals holding LREIT Units through Depository Agents; or
2. Qualifying Non-Resident Non-Individuals or Qualifying Non-Resident Funds (see definition below) holding LREIT Units in their own name or through Depository Agents; or
3. Charities registered under the Charities Act 1994 or established by any written law, town councils, statutory boards, co-operative societies registered under the Co-operative Societies Act 1979, trade unions registered under the Trade Unions Act 1940 or international organisations that are exempt from tax on REIT’s distributions by reason of an order made under the International Organisations (Immunities and Privileges) Act 1948 (collectively referred to as "Exempt Non-Corporate Unitholders") holding LREIT Units in their own name or through Depository Agents.

1. If you are a Qualifying Non-Resident Non-Individual, a Qualifying Non-Resident Fund or an Exempt Non-Corporate Unitholder holding LREIT Units in your own name:
   
   Qualifying Non-Resident Non-Individuals, Qualifying Non-Resident Funds or Exempt Non-Corporate Unitholders Holding LREIT Units In Own Name
   
   A) Which Distributions Are Eligible For The Tax Refund?
   
   For Qualifying Non-Resident Non-Individuals and Qualifying Non-Resident Funds, the tax refund applies to taxable income distributions made by LREIT within the period 2 October 2019 to 31 December 2025¹ (both dates inclusive).
   
   For Exempt Non-Corporate Unitholders, the tax refund applies to taxable income distributions paid or to be paid on or after 2 October 2019.

Notwithstanding the above, please note that all tax refunds are subject to the relevant claim being made within the applicable time limits (please refer to the section on the time limit for claim below).

B) How To Make A Claim?

Download and complete Form R1 below. Use a separate Form R1 for each distribution period.

Submit the duly completed Form R1, accompanied by the Subsidiary Income Tax Certificate ("SITC") or the Annual Dividend Statement ("ADS") issued by the Central Depository (Pte) Ltd for the distribution in respect of which the claim for refund is made, to Boardroom Corporate & Advisory Services Pte. Ltd., 1 Harbourfront Avenue, #14-07 Keppel Bay Tower, Singapore 098632.

C) When Do We Submit Form R1?

You may submit Form R1 and accompanying SITC or ADS to Boardroom Corporate & Advisory Services Pte. Ltd. at any time.

The Trustee of LREIT will collate the claims for refund submitted by Unitholders and make a claim for refund to the IRAS on a half-yearly basis (Submission deadline is 30 June and 31 December). For example, all Forms received during the period ending 30 June 2024 will be submitted to IRAS sometime in July 2024.

D) Will An Amended Tax Certificate Be Issued For The Refund?

Lendlease Global Commercial Trust Management Pte. Ltd. will issue a letter together with the cheque for the refund amount to the Unitholders. This letter will serve as evidence that the tax refunds have been made.

E) When Will We Receive Our Tax Refund?

The tax refund will be paid out to eligible unitholders as soon as practicable after receipt of the tax refund from the IRAS by the Trustee of LREIT.

DOWNLOAD FORM R1

2. If you are an individual, a Qualifying Non-Resident Non-Individual, a Qualifying Non-Resident Fund or an Exempt Non-Corporate Unitholder holding LREIT Units through Depository Agents, please liaise with your respective Depository Agent on your claim for the tax refund. The claim will be made on your behalf by your Depository Agent.
3. If you are a Depository Agent and wish to claim for the Tax Refund on behalf of beneficial owners who are individuals, Qualifying Non-Resident Non-Individuals, Qualifying Non-Resident Funds or Exempt Non-Corporate Unitholders:
   
   Depository Agents Holding LREIT Units On Behalf Of Beneficial Owners Who Are Individuals, Qualifying Non-Resident Non-
   Individuals, Qualifying Non-Resident Funds Or Exempt Non-Corporate Unitholders
   
   A) Which Distributions Are Eligible for Refund?
   
   For beneficial owners who are Qualifying Non-Resident Non-Individuals or Qualifying Non-Resident Funds, the tax refund applies to taxable income distributions made by LREIT within the period 2 October 2019 to 31 December 2025¹ (both dates inclusive).
   
   For beneficial owners who are individuals or Exempt Non-Corporate Unitholders, the tax refund applies to taxable income distributions paid or to be paid on or after 2 October 2019.

Notwithstanding the above, please note that all tax refunds are subject to the relevant claim being made within the applicable time limits (please refer to the section on the time limit for claim below).

B) How To Make A Claim?

Download and complete Form R2 below, including Annexes 1 to 3. Use a separate Form R2 for each distribution period.

Submit the duly completed Form R2, accompanied by the Subsidiary Income Tax Certificate ("SITC") issued for the distribution in respect of which the claim for refund is made to Boardroom Corporate & Advisory Services Pte. Ltd., 1 Harbourfront Avenue, #14-07 Keppel Bay Tower, Singapore 098632.

Email a soft copy of the completed Annexes to Boardroom Corporate & Advisory Services Pte. Ltd. at SRS.TeamA@boardroomlimited.com.

C) Is Identification (ID) Number Required On The Declaration Form?

Yes, ID numbers such as Singapore NRIC number, passport number or foreign ID numbers are required for individuals who hold their Units through Depository Agents.

D) When Do We Submit Form R2?

You may submit the Form R2 and accompanying SITCs to Boardroom Corporate & Advisory Services Pte. Ltd. at any time.

The Trustee of LREIT will collate the claims for refund submitted by the Depository Agents and make a claim for refund to the IRAS on a half-yearly basis (Submission deadline is 30 June and 31 December). For example, all Forms received during the period ending 30 June 2024 will be submitted to IRAS sometime in July 2024.

E) Will An Amended Tax Certificate Be Issued For The Refund?

Lendlease Global Commercial Trust Management Pte. Ltd. will issue a letter together with the cheque for the refund amount to the Depository Agents. This letter will serve as evidence that the tax refunds have been made.

F) When Will We Receive The Tax Refund On Behalf Of The Beneficial Owners?

The tax refund will be paid to Depository Agents as soon as practicable after receipt of the tax refund from the IRAS by the Trustee of LREIT. You can then proceed to make refunds to your respective beneficial owners.

DOWNLOAD FORM R2

Every claim of refund must be made to the IRAS within 4 years from the end of the year of assessment to which the claim relates. For example, for claim of refund in respect of distributions made by LREIT for the period from 1 January 2020 to 30 June 2020 (which relates to the year of assessment 2021), the claim must be submitted to the IRAS on or before 31 December 2025. Unitholders and the Depository Agents must ensure that the relevant Forms are submitted on a timely basis to allow the Trustee of LREIT to make the refund claim within the prescribed time limit. The IRAS will not process any claim that is out of time.

Definitions

Qualifying Non-Resident Non-Individual

A Qualifying Non-Resident Non-Individual investor is a person (other than an individual) who is not a resident of Singapore* for income tax purposes and:
i. who does not have a permanent establishment** in Singapore; or
ii. who carries on any operation in Singapore through a permanent establishment** in Singapore, where the funds used to acquire the REIT's units are not obtained from that operation.

Qualifying Non-Resident Fund
A Qualifying Non-Resident Fund is a fund that qualifies for tax exemption under section 13D, 13U or 13V of the Income Tax Act 1947 and is not a resident of Singapore* for income tax purposes and:

i. who does not have a permanent establishment** in Singapore (other than a fund manager in Singapore); or
ii. who carries on any operation in Singapore through a permanent establishment** in Singapore (other than a fund manager in Singapore), where the funds used to acquire the REIT's units are not obtained from that operation.

*Non-Resident in Singapore

A company is not a tax resident in Singapore if the management and control of its business is exercised outside Singapore during the respective calendar year in which the distribution was made and there is no intention to change the management and control of its business to Singapore.

A non-resident fund refers to a fund that is a non-resident company, a partnership where all partners are non-residents, a trust administered by a non-resident trustee, or a non-resident entity.

**Permanent Establishment in Singapore 

**A permanent establishment is defined under the Income Tax Act 1947 as a fixed place where a business is wholly or partly carried on including a place of management, a branch, an office, a factory, a warehouse, a workshop, a farm or plantation, a mine, oil well, quarry or other place of extraction of natural resources, a building or work site or a construction, installation or assembly project. A person shall be deemed to have a permanent establishment in Singapore if it:

i. carries on supervisory activities in connection with a building or work site or a construction, installation or assembly project; or
ii. has another person acting on the Unitholder's behalf in Singapore who:

a. has and habitually exercises an authority to conclude contracts;
b. maintains a stock of goods or merchandise for the purpose of delivery on its behalf; or
c. habitually secures orders wholly and almost wholly for the Unitholder or for such enterprises as are controlled by the person.

¹ Or which other date as may be applicable should the duration of the tax concession mentioned herein (i.e. the reduced rate of tax deduction) be subsequently extended.