Suntec REIT’s managed investment trust in Australia will continue to enjoy a concessionary withholding tax rate at 10% or 15% on distributions for the year ending Dec 31.
The announcement was made by Suntec REIT’s manager, who said, on Sept 3, that it received a “private ruling” from the Australian Tax Office that its inability to meet the requirement was “only temporary and beyond the control” of Suntec REIT (Australia) Trust.
The tax office added that it was “fair and reasonable to treat the trust as a managed investment trust”.
Assuming that Suntec REIT’s Australian-managed investment trust is subject to the concessionary withholding tax rate, its distribution per unit (DPU) for the 1HFY2025 would have been 3.271 cents instead of 3.155 cents.
That said, the manager clarified that there would be no change to the distribution declared on July 24 and paid on Aug 29.
Suntec REIT, in February, said it would not qualify for so-called managed investment trust (MIT) status in FY2025, as the stakes of controlling shareholders Gordon Tang and Celine Tang crossed 10%, thereby disqualifying them from a concessionary tax rate.
Units in Suntec REIT closed flat at $1.30 on Sept 3.
