Page 8 - Listing a Real Estate Investment Trust in Singapore or China

Conclusion

Singapore has been the hub for setting up of REITs for almost 20 years. The number of listed
REITs now stands at 42 REITs with asset holdings worldwide. The number of S-REITs with Pan
Asian exposure is as below:

S-REITs that have Pan Asian Exposure

South Korea - 5 trusts

Hong Kong - 2 trusts

India - 2 trusts China - 10 trusts

Malaysia - 6 trusts Japan - 7 trusts

Singapore - 24 trusts Vietnam - 2 trusts

Philippines - 1 trust

Indonesia - 3 trusts

Note: There may be trusts with property
exposure to more than one market.
Source: SGX Research Chartbook: S-REITs and Property Trusts – July 2021

The PRC has made a promising start to the listed REIT market this year, with many of the listed
C-REITs performing well. However, several laws, regulations and guidance, including those for
tax are still being studied and formulated. Whilst such policies will be made clear in due course,
there are uncertainties that C-REITs have to deal with at this juncture.

Singapore is able to provide a more mature market for listing of S-REITs and also allows holding
of more asset classes in comparison to C-REITs, which are currently restricted to certain assets,
such as infrastructure and logistics assets.

Depending on the asset holdings of a potential REIT, the markets the REIT wants to have
presence in, and the regulatory framework of each country, the pros and cons between listing
the REIT in Singapore and the PRC have to be weighed.

INCOME TAX CONSIDERATIONS
Singapore
When S-REITs distribute to resident or non-resident individual investors/unitholders, they will
enjoy Singapore income tax exemption on the distributions. Resident corporate unitholders will
enjoy Singapore income tax exemption on designated income. Whilst non-resident corporate
unitholders’ distributions will only be subject to a 10% withholding tax.

THE POWER OF BEING UNDERSTOOD
AUDIT | TAX | CONSULTING