Page 15 - Budget-2018-Highlights-en-flip

TAX INCENTIVES

Extension and Enhancement of Various Other Schemes

Scheme Current Proposed changes

Investment Capital expenditure incurred on  The IA scheme will be extended to include
Allowance (“IA”)
scheme submarine cable systems does not capital expenditure incurred on newly-

qualify for IA. constructed strategic submarine cable

systems landing in Singapore, subject to

qualifying conditions.

 The change will take effect for capital
expenditure incurred between 20 February
2018 and 31 December 2023, inclusive of
both dates.

Singapore-listed Real Distributions made by Singapore-listed  To have parity in tax treatments between
Estate Investment Real Estate Investment Trusts (“S- investing in individual S-REIT and via REITs
Trusts Exchange- REITs”) to REITs ETFs out of specified ETF with investments in S-REITs, the
Traded Funds (“REITs income derived by S-REITs are subject following tax treatment will be accorded to
ETFs”) to tax at the prevailing corporate tax REITs ETFs:
rate of 17% in the hands of REITs ETFs.
(a) Tax transparency treatment on the
All investors of REITs ETFs will not be distributions received by REITs ETFs
taxed on the distributions made out of from S-REITs which are made out of
such income from REITs ETFs. the latter’s specified income;

(b) Tax exemption on such REITs ETFs
distributions received by individuals,
excluding individuals who derive any
distribution:

(i) through a partnership in Singapore;
or

(ii) from the carrying on of a trade,
business or profession; and

(c) 10% concessionary tax rate on such
REITs ETFs distributions received by
qualifying non-resident non-individuals.

 The tax concessions for REITs ETFs will take
effect on or after 1 July 2018.

BUDGET 2018 HIGHLIGHTS | 13