Suntec REIT’s investment trust in Australia to continue to enjoy concessionary withholding tax
Suntec REIT’s Australian-managed investment trust will maintain a concessionary withholding tax rate of 10% or 15% on distributions until 31 December 2025, following a ruling from the Australian Tax Office. The ruling states that Suntec REIT's temporary inability to meet requirements was beyond its control. Assuming the concessionary rate applies, the distribution per unit for the first half of 2025 would be 3.271 cents, up from 3.155 cents, with no changes to the previously declared distribution.
It received the ruling from the Australian Tax Office.
Suntec REIT’s Australian-managed investment trust will continue to enjoy a concessionary withholding tax rate at 10% or 15% on distributions for the year ending 31 December 2025, according to the firm’s bourse filing on 3 September.
The manager of Suntec REIT, ESR Trust Management (Suntec) Limited, announced that it has received a private ruling from the Australian Tax Office that its inability to meet the requirement was “only temporary and beyond the control” of Suntec REIT (Australia) Trust, and that “it is fair and reasonable to treat the trust as a managed investment trust.”
For illustrative purposes only and on a pro forma basis, Suntec REIT said that assuming its Australia Trust is subject to the concessionary withholding tax rate, its distribution per unit for the first half of 2025 would be 3.271 cents instead of 3.155 cents.
To avoid doubt, Suntec REIT said there is no change to the distribution declared on 24 July 2025 and paid on 29 August 2025.
