The Manager has established an arrangement with the Inland Revenue Authority of Singapore ("IRAS") to allow eligible MIT Unitholders to use the back-end tax refund procedures to claim for over-deducted tax on income distributions from MIT.

Background

Distributions made by REITs listed on the Singapore Exchange to individuals, whether foreign or local, are tax exempt. In this respect, the IRAS has confirmed that all individuals will receive their distributions from MIT without tax being deducted at source (gross distributions). Individuals who derived the distributions from the carrying on of a trade, business or profession or from a partnership in Singapore are not eligible for this tax exemption and are required to declare the distributions in their income tax returns, notwithstanding that gross distribution have been made to them.

REITs’ distributions to qualifying non-resident non-individual investors made during the period from 18 February 2005 to 31 December 2025 (both dates inclusive) and qualifying non-resident funds made during the period from 1 July 2019 to 31 December 2025 (both dates inclusive) are entitled to a reduced rate of tax of 10%.

Where tax has been deducted from distributions made at a higher rate than the applicable tax rate, eligible Unitholders may claim a refund of the tax over-deducted from the IRAS through the Trustee and Manager.

Categories of Eligible Unitholders

1. The back-end refund procedures allow beneficial Unitholders of the following categories to make a claim for refund of any tax over-deducted from MIT’s distributions (see paragraph 3 for the eligible distributions):
   1. a qualifying non-resident non-individual or a qualifying non-resident fund holding MIT units directly; or
   2. an Exempt Non-corporate Unitholder holding MIT units directly; or
   3. an individual, or a qualifying non-resident non-individual, a qualifying non-resident fund or an exempt non-corporate unitholder whose MIT units are held through a Depository Agent. Refunds in this category are to be claimed by the respective Depository Agent.
      
      Other categories of beneficial Unitholders will need to go through the normal process of tax return filing to claim a refund, if any, of the tax over-deducted.
2. A qualifying non-resident non-individual refers to a MIT Unitholder (other than an individual) who is not a resident of Singapore for income tax purposes; and:
   1. who does not have a permanent establishment in Singapore; or
   2. who carries on any operation in Singapore through a permanent establishment in Singapore, but the funds used to acquire the MIT units are not obtained from that operation.
3. A qualifying non-resident fund is one who is not a resident in Singapore for income tax purposes, qualifies for tax exemption under section 13D, 13U or 13V of the Income Tax Act 1947 and:
   1. who does not have a permanent establishment in Singapore (other than the fund manager in Singapore); or 
   2. who carries on any operation in Singapore through a permanent establishment in Singapore (other than the fund manager in Singapore), but the funds used to acquire the MIT units are not obtained from that operation. 
4. An Exempt Non-corporate Unitholder is one who is:
   1. a charity registered under the Charities Act 1994 or established by any written law; or
   2. a town council; or
   3. a statutory board; or
   4. a co-operative society registered under the Co-operative Societies Act 1979; or
   5. a trade union registered under the Trade Unions Act 1940; or
   6. an international organisation that is exempt from tax on such distributions by reason of an order made under the International Organisations (Immunities and Privileges) Act 1948.

Applicable MIT Distributions

5. The back-end refund would be applicable to the following MIT’s distributions:
   1. in relation to beneficial Unitholders who are individuals or Exempt Non-corporates, distributions made by MIT on or after 21 October 2010. As mentioned, all individuals are entitled to receive their distributions from MIT without tax being deducted at source and therefore if tax had been deducted from the distributions made to them, they are entitled to a refund of the tax deducted. However, individuals who derived the distributions from the carrying on of a trade, business or profession or from a partnership in Singapore are required to declare the distributions in their income tax returns as such distributions are liable to tax in their hands; and
   2. in relation to beneficial Unitholders who are qualifying non-resident non-individuals, distributions made by MIT during the period from 21 October 2010 to 31 December 2025 (both dates inclusive), and in relation to beneficial unitholders who are qualifying non-resident fund, distributions made by MIT during the period from 1 July 2019 to 31 December 2025 (both dates inclusive). Qualifying non-resident non-individuals and qualifying non-resident funds are taxed at a reduced rate of 10% on such distributions and therefore if tax had been deducted at the standard corporate tax rate (currently 17%) from the distributions made to them, they are entitled to a refund of the tax over-deducted.

Documents to be submitted

6. To make a claim for refund, the following documents are required:
   

   Form	Category of Eligible Unitholders
   Form R1	Qualifying non-resident non-individual investors and qualifying non-resident funds who hold MIT units directly Exempt Non-corporate investors who hold MIT units directly
   Form R2                Annex 1 Annex 2  Annex 3	Individuals;  Qualifying non-resident non-individual investors and qualifying non-resident funds; and  Exempt Non-corporate investors who hold MIT units through Depository Agents

    
    
    
    
    
    
    
    
   
   
   
   1. Form R1-- Qualifying non-resident non-individual investors and qualifying non-resident funds are required to complete Form R1 for each income distribution period. 
      
      Form R2 (Depository Agents) -- Depository Agents are required to make the declaration on Form R2 and to furnish the particulars of the beneficiaries on whose behalf the claim is made in the appropriate annexes (Annex 1,  Annex 2 or Annex 3) to the Form. Please use a separate Form R2 for each income distribution period;
   2. Subsidiary Income Tax Certificates (SITCs)
      
      Each claim for refund has to be substantiated by the SITC that were issued for the distribution in respect of which the refund is claimed. IRAS will verify the claim against the SITC and therefore the SITC must show, among other things, the name of the individual or qualifying non-resident non-individual or qualifying non-resident fund who is beneficially entitled to the distribution.
7. Every claim of refund must be made to IRAS within 4 years from the end of the year of assessment to which the claim relates. For example, for claim of refund in respect of distribution made by MIT for the period from 1 January 2017 to 31 March 2017 (which relates to the year of assessment 2018), the claim must be submitted to the IRAS on or before 31 December 2022.
8. Please note that the declaration status of the beneficiary or beneficiaries of the units deposited in a particular sub-account (i.e. individuals / qualifying non-resident non-individual investors / qualifying non-resident funds) must be properly substantiated. Depository Agents must ensure that the appropriate documents to support the declaration are available. Where the units are held through more than one tier of nominees, please note that the confirmation must be from the ultimate beneficiaries. Please also ensure that you keep records of the amount of distributions made to each beneficiary as the IRAS may require such information.
9. Please submit the duly completed Forms and the accompanying SITCs to Boardroom Corporate & Advisory Services Pte. Ltd., 1 Harbourfront Avenue, #14-07 Keppel Bay Tower, Singapore 098632. In addition, please email a soft copy of the completed Annexes to Boardroom Corporate & Advisory Services Pte. Ltd. at srs.teamd@boardroomlimited.com.
10. Applicants may submit the forms and the accompanying SITCs at any time. The Trustee and the Manager will file a claim for refund with the IRAS on a half-yearly basis. For example, all claims received by Boardroom Corporate & Advisory Services Pte. Ltd. during the half-year ending 31 December 2022 will be compiled and submitted to the IRAS in January/February 2023.
11. The amount of tax over-deducted will be refunded only after the IRAS has refunded this amount to the Trustee of MIT.