Mapletree Pan Asia Commercial Trust (MPACT) has announced a distribution of 2.00 Singapore cents per unit for the fourth quarter of 2024, covering the period from 1 October 2024 to 31 December 2024. This update includes important details about tax implications, deadlines, and required actions for unitholders, which might significantly influence MPACT’s share price.

Key Financial Details of the Distribution

• Total distribution: 2.00 Singapore cents per unit
• Breakdown:
  • Taxable income component: 1.41 Singapore cents per unit
  • Tax-exempt component: 0.49 Singapore cents per unit
  • Capital component: 0.10 Singapore cents per unit
• Record date: 5.00 p.m. on Tuesday, 4 February 2025
• Distribution payment date: Friday, 7 March 2025

Tax Implications for Unitholders

MPACT has provided a detailed breakdown of the tax treatment for the distribution:

• Tax-exempt income component: Exempt from tax for all unitholders.
• Capital component: Treated as a return of capital and not subject to tax.
• Taxable income component: Tax will be deducted at source unless specific exemptions apply. Categories of unitholders exempt from tax deduction include:
  • Individuals (not deriving the distribution through partnerships or trade/profession activities).
  • Singapore-incorporated and tax-resident companies.
  • Singapore branches of foreign companies.
  • Registered bodies or international organizations with tax exemptions.
  • Real estate investment trust exchange-traded funds with tax transparency treatment.
  • Agent banks or Supplementary Retirement Scheme (SRS) operators acting as nominees for CPF or SRS investors.

Unitholders falling outside these categories will have tax deducted, with foreign non-individuals and qualifying non-resident funds subject to a reduced tax rate of 10%.

Important Actions and Deadlines for Unitholders

To receive the distribution without unnecessary tax deductions, unitholders must complete and return the appropriate forms:

• Form A: For unitholders in categories (b) to (g) described above.
• Form B: For depository agents acting on behalf of beneficial owners.

Forms will be sent by Thursday, 6 February 2025, and must be submitted to the unit registrar, Boardroom Corporate & Advisory Services Pte. Ltd., by 5.00 p.m. on Monday, 17 February 2025. Failure to comply will result in a tax deduction at the default rate of 17%.

Important Dates for Unitholders

Potential Share Price Impact

The announcement carries potential implications for MPACT’s share price. The detailed breakdown of tax treatment and the opportunity for tax exemptions may attract new investors. Additionally, failure by unitholders to adhere to the deadlines could result in higher tax deductions, potentially affecting investor sentiment.