Tax Refund

The tax refund is a process to allow eligible Unitholders to claim a refund of tax over-deducted from the distributions made to them.

Background

• The changes in the applicable tax rate on distributions made by Real Estate Investment Trusts ("REITs") listed on the Singapore Exchange to individuals (include both local and foreign individuals) and foreign non-individual investors were announced in the 2004, 2005 and 2010 Budget Statements.
• In this regard, we set out the tax rate changes and the implications on the unitholders of AIMSAMPIREIT as follows:
  

  (a)	The Budget Statement 2004 announced that specified Singapore-sourced investment income derived directly by individuals from financial instruments will be exempted from tax with effect from the Year of Assessment 2005. In this respect, all individuals (excluding partnerships) will receive their gross distributions from AIMSAMPIREIT without tax being deducted at source. The tax exemption will only apply to distributions made out of taxable income that was earned by AIMSAMPIREIT from and including 19 April 2007 and is applicable to individuals who receive such distribution as investment income. Individuals who receive such distributions as gains or profits from any trade, business or profession will continue to be taxable and are required to declare such distribution as income in their tax returns.
  (b)	The Budget Statement 2005 announced that the tax rate applicable to distributions made to foreign non-individual investors during the period from 18 February 2005 to 17 February 2010 will be reduced from 20% to 10%. The details of this tax change can be found in the circular dated 28 February 2005 issued by the Monetary Authority of Singapore ("MAS Circular"). In this respect, foreign non-individual investors will receive their taxable transparent income distributions from AIMSAMPIREIT after tax deduction at source at the reduced rate of 10% from 19 April 2007 to 17 February 2010.
  (c)	The deadline of 17 February 2010 has expired and the Budget Statement 2010 proposed that the reduced rate of 10% will be renewed for the period from 18 February 2010 to 31 March 2015 (both dates inclusive). Subject to the proposal being promulgated as law, foreign non-individual investors will continue to receive taxable transparent income distributions from AIMSAMPIREIT after tax deduction at source at the reduced rate of 10% from distributions made by AIMSAMPIREIT from 18 February 2010 to 31 March 2015.

• A foreign non-individual investor refers to a person (other than an individual) which is not a resident of Singapore for income tax purposes and:
  

  (a)	which does not have a permanent establishment in Singapore; or
  (b)	which carries on any operation in Singapore through a permanent establishment in Singapore, where the funds used by that investor to acquire the units in AIMSAMPIREIT (the “Units”) are not obtained from that operation.

Unitholders eligible for this tax refund

• Eligible Unitholders are:
  

  (a)	Foreign non-individual investors who hold their Units through Depository Agent and had received the income distributions after tax deduction at the prevailing corporate tax rate, instead of at 10%;
  (b)	Individuals who hold their Units through Depository Agent and had received income distributions after tax deduction at the prevailing corporate tax rate, instead of gross distributions; and
  (c)	Foreign non-individual investors who hold the Units directly and had received the income distributions after tax deduction at the prevailing corporate tax rate, instead of at 10%.

• For other categories of beneficial Unitholders, they will need to go through the normal process of tax return filing to claim a refund, if any, of the tax deducted.

How to make a claim?