Page 7 - Listing a Real Estate Investment Trust in Singapore or China
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TAX TRANSPARENCY AND TAX TREATMENT
C-REITs are tax-transparent and they pay out majority of their profits in dividends. China’s new
infrastructure REITs are however, structured like public funds that invest in asset-backed
securities, which indirectly own the underlying assets.
The fiscal and tax departments are currently studying the relevant tax policies for listed
C-REITS and will be issuing a complete set of tax policies on the matter in due course. However,
it is anticipated as the underlying assets or project companies often involve real estate, there
will be various taxes such as corporate income tax, value-added tax, land value-added tax, and
deed tax according to their di erent restructuring forms that need to be considered.
REIT DIVIDENDS – INVESTORS/UNITHOLDERS
• Corporate enterprises (also known as tax resident enterprises [TREs]) are subject to
corporate income tax (CIT) on their worldwide income. Under the CIT law, the standard rate
is 25%.
• Individual residents are generally subject to PRC individual tax (IIT) on their worldwide
income. Excluding annual comprehensive income, a flat rate of 20% is applied on the
remaining categories of income, including incidental income, rental income, dividends and
capital gains, unless specifically reduced by the State Council.
THE POWER OF BEING UNDERSTOOD
AUDIT | TAX | CONSULTING
