Proposed changes to Dutch tax regime will not affect distributable income: Cromwell European Reit manager

CROMWELL European Reit's (CEREIT) manager said on Thursday (Sep 22) proposed changes to Dutch tax regime will not affect the real estate investment trust's (Reit) distributable income.

The clarification through a bourse filing came two days after the Dutch government's budget day announcement on its tax policy intentions to subject Dutch fiscal investment institutions to Dutch corporate income tax starting Jan 1, 2024.

The manager said the Reit and its subsidiaries are not considered fiscal investment institution entities, and are already subject to corporate income tax in the Netherlands.

"Therefore, the proposed changes to the Dutch (tax) regime will not have an implication on CEREIT's distributable income," it said.

Under current tax rules in the Netherlands, Dutch fiscal investment institutions are exempt from Dutch corporate income tax, but mandatory annual distributions are in-principle subject to Dutch dividend withholding tax.

Units of CEREIT trading in Singapore dollars closed up 0.4 per cent or S$0.01 at S$2.79 before the announcement on Thursday, while units trading in Euros closed up 2 per cent at 2.01 euro.

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