“Should a unitholder fail to submit the relevant US withholding tax forms and certificates, the REITs which have suspended or reduced distributions would be exposed to withholding tax that would otherwise not be payable,” reads the statement by SGX RegCo and REITAS.
Singapore Exchange Regulation (SGX RegCo) and the REIT Association of Singapore (REITAS) are reminding unitholders of REITs, whose primary investments are US assets, to submit the relevant US withholding tax forms and certificates “in a timely manner”.
The forms will ensure that the REIT won’t have to pay US withholding taxes on its suspended or reduced dividend distributions, say the market regulator and REIT association. This will also help the relevant REITs to preserve cash amid the difficult US market conditions, to meet its loan repayment obligations and to continue to reinvest in the properties, they add, noting that doing so will “protect the interests” of the REITs and their unitholders.
