Keppel DC REIT Announces 0.819 Cents Distribution Per Unit for Q4 2024: Key Dates and Tax Information

Keppel DC REIT Declares Distribution & Key Tax Details for 2025

Keppel DC REIT, a data center-focused real estate investment trust (REIT) in Singapore, has announced a distribution of 0.819 cents per unit for the period from 28 November 2024 to 31 December 2024. The distribution will be paid on Monday, 17 March 2025. Here’s a breakdown of the key details and what unitholders need to know.

Key Points of the Distribution

Total distribution: 0.819 cents per unit, comprising:

Taxable income distribution: 0.764 cents per unit
Tax-exempt income distribution: 0.055 cents per unit

The Record Date is set for Monday, 5 February 2025, at 5:00 PM. Only unitholders whose accounts are credited with units by this date will qualify for the distribution.

Tax Implications and Actions for Unitholders

The tax treatment of the distribution varies depending on the type of unitholder:

1. Individual Unitholders

Singaporean or non-Singaporean individual unitholders who hold their units in their sole name or jointly with other individuals will receive the gross distribution tax-exempt, provided the units are not held via a partnership or used for trade or business. No action or forms are required.

2. REIT Exchange-Traded Funds (REIT ETFs)

REIT ETFs will receive the gross distribution but must complete and return the “Declaration for Singapore Tax Purposes Form A” to confirm their tax transparency treatment. Failure to submit or properly complete the form will result in a 17% tax deduction.

3. Other Qualifying Unitholders

Non-individual unitholders, such as companies incorporated in Singapore, Singapore branches of foreign companies, or statutory bodies, will receive the gross distribution but must declare their tax residency by completing Form A. Failure to do so will result in a 17% tax deduction.

4. Foreign Non-Individual Unitholders

Foreign non-individual unitholders who meet specific conditions will receive their distribution net of 10% tax. These unitholders must declare their status by completing Form A (Section D). Failure to submit the form will result in a 17% tax deduction.

5. Foreign Funds

Foreign funds qualifying for tax exemptions under sections 13D, 13U, or 13V of the Income Tax Act 1947 will also receive their distribution net of 10% tax. They must submit Form A (Section E). Non-submission will lead to a 17% tax deduction.

6. Nominee Unitholders

Nominees holding units for qualifying unitholders or foreign investors will need to complete and return the “Declarations by Depository Agents for Singapore Tax Purposes Form B.” If beneficiaries do not qualify for tax exemptions, the distribution will be net of 10% tax. Failure to submit Form B will result in a 17% tax deduction.

7. CPF/SRS Account Holders

Unitholders who bought units using Central Provident Fund (CPF) or Supplementary Retirement Scheme (SRS) funds will receive the distribution tax-exempt, with no forms required.

8. Joint and Other Unitholders

Other unitholders, including those holding units jointly (except jointly held by individuals), will receive their distribution net of 17% tax. No forms are required.

Important Dates and Deadlines

5 February 2025: Close of Keppel DC REIT’s Transfer Books and Register of Unitholders.
11 February 2025: Relevant forms will be dispatched to qualifying unitholders.
24 February 2025, 5:00 PM: Deadline for submitting Form A or Form B to avoid tax deductions.
17 March 2025: Payment of the distribution.

Potential Impact on Shareholders

This announcement may be price-sensitive as it provides clarity on the distribution amount and tax implications for various unitholders. Investors should take note of the deadlines for submitting forms to avoid unnecessary tax deductions, which could influence returns.

Disclaimer

This article is for informational purposes only and does not constitute financial advice. Please consult a tax advisor or financial professional for guidance specific to your situation. The information provided is based on the announcement by Keppel DC REIT, and any forward-looking statements are subject to risks and uncertainties.