On 9 July 2018, the Inland Revenue Authority of Singapore (IRAS) has updated the Second Edition of the e-Tax Guide, Income Tax Treatment of Real Estate Investment Trust Exchange-Traded Funds.
The amendment include to amend paragraph 5.2 of the main guide and paragraph (b) of Annex 2 to change the requirement for a REIT ETF to “distribute all income (net of expenses) to unitholders”, to “distribute all distributions received from S-REITs (net of expenses) to unitholders”.
Further amendment include to amend paragraphs 6.9, 6.10 and 8.9 of the main guide, and to amend example 2 of Annex 3 such that any undistributed income arising from redemptions of units in a REIT ETF after distribution declaration date must be rolled over to the next distribution period and be distributed to unitholders.
Source: IRAS, 11 July 2018