9. INCOME TAX (CONTINUED)
9A. Components of Tax Expense/(Benefit) Recognised in Profit or Loss Include (continued):
The income tax expense/(benefit) varied from the amount of income tax expense/(benefit) determined by applying
the Singapore income tax rate of 17% (2013: 17%) to total return before income tax as a result of the following
differences:
The amount of current income taxes payable as at the end of the reporting year was S$445,000 (2013: S$1,532,000)
for the Group. Such an amount, according to tax rules, was to be paid before the end of the reporting year.
(a) There is a tax ruling issued by the Inland Revenue Authority of Singapore (the “IRAS”) to grant tax transparency
treatment on rental and other related income derived by the Trust. Under this tax transparency treatment, subject
to meeting the terms and conditions of the tax ruling, the Trustee is not subject to tax on such taxable income to
the extent of the amount distributed to unitholders. Instead, the distributions made by the Trust out of such taxable
income are subject to tax in the hands of unitholders, unless they are exempt from tax on such distributions. For
taxable income that is not distributed, tax on such amount of taxable income will be assessed on the Trust.
9B. Deferred Tax Expense/(Benefit) Recognised in Profit or Loss Include:
9C. Deferred Tax Balance in the Statement of Financial Position:
NOTES TO THE
FINANCIAL STATEMENTS
31 DECEMBER 2014
Group
Trust
2014
2013
2014
2013
S$’000
S$’000
S$’000
S$’000
Total return before income tax
112,686
119,364
30,878
21,589
Income tax expense at the above rate
19,157
20,292
5,249
3,670
Non-deductible/(not liable to tax) items
15,643
(4,680)
(5,639)
(3,831)
Effect of different tax rates in different countries
(13,002)
(14,356)
–
–
Tax transparency
(a)
285
276
285
276
Total income tax expense/(benefit)
22,083
1,532
(105)
115
Group
Trust
2014
2013
2014
2013
S$’000
S$’000
S$’000
S$’000
Deferred tax relating to the changes in fair value of
investment properties
7,010
(11,667)
(105)
115
Group
Trust
2014
2013
2014
2013
S$’000
S$’000
S$’000
S$’000
Deferred tax (liabilities)/assets
recognised in profit or loss:
Deferred tax relating to the changes in fair value of
investment properties
(28,508)
(21,498)
595
490
66
FIRST REIT
ANNUAL REPORT 2014
