The Inland Revenue Authority of Singapore has issued an updated e-Tax Guide on the income tax treatment of real estate investment trust exchange-traded funds, outlining how tax transparency applies to REIT ETFs and the conditions for qualifying concessions. The ninth edition sets out the obligations of trustees and unit holders, clarifies withholding tax and administrative procedures, and reflects policy changes introduced in the 2025 Budget.
The Inland Revenue Authority of Singapore (IRAS) has updated e-Tax Guides concerning Income Tax Treatment of Real Estate Investment Trust Exchange-Traded Funds (Ninth Edition) on 4 December 2025.
This e-Tax Guide explains the income tax treatment of a real estate investment trust exchange-traded fund (“REIT ETF”) which has been accorded the tax transparency treatment.
It also addresses REIT ETFs qualifying for tax concessions under specific schemes, including:
- Designated Unit Trust
- Approved Unit Trust
- Income of prescribed persons from funds managed by a Singapore-based fund manager
- Income arising from funds managed by a Singapore-based fund manager
Under this framework, the Comptroller of Income Tax (CIT) treats distributions received by a REIT ETF trustee from S-REITs—derived from the REITs’ specified income—as tax-transparent.
The guide provides detailed guidance on:
- Tax transparency treatment
- Tax treatment of the trustee
- Withholding tax applicable to REIT ETF distributions
- Tax treatment of unit holders
- Administrative procedures, including:
- Applying for tax transparency treatment
- Handling units held by individual unit holders or nominees
- Maintaining information and documentation on unit holders
- Claiming refunds for over-deducted tax from distributions
- Filing tax returns and estimated chargeable income
This official IRAS publication outlines the obligations of trustees and unit holders, including tax implications for individuals, companies, and non-resident entities. It also clarifies procedures for tax adjustments, withholding tax filings, and claiming refunds. The ninth edition incorporates updates reflecting recent policy changes announced in the 2025 Budget.
