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Singapore Budget 2018: Tax transparency to apply for S-Reit ETFs
THE government will apply tax transparency for exchange-traded funds (ETFs) of Singapore real estate investment trusts (S-Reits), according to Annex A-5 of Finance Minister Heng Swee Keat's Budget speech.
Distributions made by S-Reits to S-Reits ETFs out of specific income derived by S-Reits are now subject to the prevailing corporate tax rate of 17 per cent.
The tax transparency applied to S-Reits will now apply to S-Reit ETFs. This means that the Reits ETF will no longer be subjected to tax on the specified income that is distributed to the unitholders.
For more Budget 2018 stories visit bt.sg/budget18