Tax incentives for S-Reits extended but not stamp duty remissions

Singapore

INCOME tax and GST concessions for Singapore real estate investment trusts (S-Reits) will be extended for five more years, but stamp duty concessions for the purchase of local properties will be allowed to lapse after March this year, said Deputy Prime Minister and Finance Minister Tharman Shanmugaratnam on Monday. This is because the stamp duty concessions "were intended to enable the industry to acquire a critical mass of local assets as a base from which the Reits can expand abroad, (and) this has been achieved", he said in his Budget speech.

With the extensions, Reits will continue to enjoy tax exemption on qualifying foreign-sourced income, a reduced withholding tax of 10 per cent (from 17 per cent) on distributions to foreign institutional investors, and GST remissions on business expenses for Reits with overs…