11. DISTRIBUTIONS (CONTINUED)
11A. Distribution Per Unit (continued)
(a) Qualifying investors and individuals (other than those who hold their units through a partnership) will generally
receive pre-tax distributions. These distributions are exempt from Singapore income tax in the hands of individuals
unless such distributions are derived through a Singapore partnership or from the carrying on of a trade, business
or profession.
Qualifying foreign non-individual investors will receive their distributions after deduction of tax at the rate of 10%.
The Monetary Authority of Singapore has announced that the 10% tax concession which was to expire on 31 March
2015 has been extended till 31 March 2020.
All other investors will receive their distributions after deduction of tax at the rate of 17% (2013: 17%).
(b) Tax-Exempt Income Distribution is exempt from Singapore income tax in the hands of all unitholders.
(c) Capital Distribution represents a return of capital to unitholders for Singapore income tax purposes and is therefore
not subject to Singapore income tax. For unitholders who are liable to Singapore income tax on profits from the
sale of the Trust’s units, the amount of capital distribution will be applied to reduce the cost base of their Trust’s
units for Singapore income tax purposes.
Current Distribution Policy:
The Trust’s current distribution policy is to distribute at least 90.0% (2013: 90.0%) of its taxable and tax-exempt income
(after deduction of applicable expenses) and certain capital receipts. The capital receipts comprise amounts received
by the Trust from redemption of redeemable preference shares and shareholder loans in the Singapore subsidiaries.
NOTES TO THE
FINANCIAL STATEMENTS
31 DECEMBER 2014
Name of Distribution
Distribution declared subsequent to end of the reporting year
(final distribution) (See Note 26)
Distribution Type
Income/Capital
Group and Trust
2014
2013
2014
2013
Distribution Rate
Cents
per unit
Cents
per unit
S$’000
S$’000
Taxable Income
(a)
:
0.09
0.08
660
599
Tax-Exempt Income
(b)
:
1.28
1.24
9,388
8,762
Capital
(c)
:
0.67
0.65
4,915
4,594
Subtotal:
2.04
1.97
14,963
13,955
Total annual distribution paid or declared
Taxable Income
(a)
:
0.35
0.31
2,531
2,184
Tax-Exempt Income
(b)
:
5.08
4.92
36,738
33,999
Capital
(c)
:
2.62
2.29
18,952
15,903
Total:
8.05
7.52
58,221
52,086
69
FIRST REIT
ANNUAL REPORT 2014
