Singapore

THE withholding tax incurred by exchange-traded funds (ETFs) tracking real estate investment trusts (Reits) is a major bugbear for potential issuers of this instrument. Singapore Exchange (SGX) is thus in talks with the relevant authorities on a potential tax waiver for such a product.

This was revealed by SGX head of research and products Chan Kum Kong in an interview after the maiden listing of a Reit ETF on the Singapore bourse on Thursday. "On the outcome, I definitely can't comment on that but we do recognise this and we have raised the issue," he said. "We are getting feedback from potential issuers that they are holding back their efforts because of this differential in potential returns."