162
FRASERS HOSPITALITY TRUST ANNUAL REPORT 2015
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL PERIOD FROM 20 JUNE 2014 (DATE OF CONSTITUTION) TO 30 SEPTEMBER 2015
9.
TAXATION (CONT’D)
(ii)
Tax Ruling 2
FH-REIT has obtained a Foreign Sourced Income Tax Exemption Ruling from the IRAS on the Singapore
taxation of trust distributions from MIT Australia in respect of the Australian properties. Pursuant to the
ruling, the REIT Trustee will be exempted from Singapore income tax on trust distributions received
from MIT Australia, up to 31 March 2015, unless otherwise extended (extended to 31 March 2020 in
Budget 2015). Such income will be regarded as Tax Exempt Income of FH-REIT under Section 13(12) of
the Income Tax Act. The Foreign-Sourced Income Tax Exemption Ruling is granted subject to certain
conditions.
In addition, pursuant to a letter from the IRAS, the foreign-sourced distributions and interest income to
be received in FHT Australia Pte. Ltd. (a subsidiary of FH-REIT) from MIT Australia, will also be exempt
from Singapore income tax, subject to certain conditions. The tax exemption shall expire on 31 March
2015, unless otherwise extended (extended to 31 March 2020 in Budget 2015).
(iii)
Singapore sourced dividends
Dividend income received by FH-REIT from the Singapore subsidiaries will not be subject to Singapore
income tax in the hands of the REIT Trustee. They will be regarded as Tax Exempt Income of FH-REIT.
(iv)
Return on capital to FH-REIT
Any return of capital received by FH-REIT from its Singapore subsidiaries and/or MIT Australia is capital in
nature and hence, is not taxable in the hands of the REIT Trustee.
Tax expense
The major components of tax expense for the financial period ended 30 September 2015 are:
FHT FH-REIT Group
FH-BT
20 Jun 2014 to
30 Sep 2015
20 Jun 2014 to
30 Sep 2015
20 Jun 2014 to
30 Sep 2015
$’000
$’000
$’000
Statements of Total Return
Current tax expense:
– Current period income tax
5,051
5,051
–
Deferred tax expense:
– Origination and reversal of temporary differences
11,612
11,612
–
Withholding tax expense
1,323
1,323
–
17,986
17,986
–
