IREIT Global.
annual report 2014
For the reporting period from 1 November 2013 (date of constitution) to 31 December 2014
Notes to the
Financial Statements
2.
SIGNIFICANT ACCOUNTING POLICIES
(Continued)
(l) Taxation
(Continued)
The Inland Revenue Authority of Singapore (“IRAS”) has issued a provisional tax ruling
to IREIT pursuant to which the Singapore holding companies, which are wholly owned
by IREIT, have been granted in-principle tax exemption under Section 13(12) of the
Singapore Income Tax Act (“SITA”) on the dividend income from IREIT’s wholly-owned
Dutch subsidiary companies (Dutch Subsidiaries). The tax exemption has been granted by
the IRAS based on certain representations made by IREIT and subject to certain conditions
being satisfied.
The IRAS has also issued a provisional tax ruling to IREIT pursuant to which the Singapore
financing companies, which are wholly owned by IREIT, have been granted tax exemption
under Section 13(12) of the SITA on the interest income from the Dutch Subsidiaries which
are wholly owned by the Singapore holding companies. The tax exemption has been granted
by the IRAS based on certain representations made by the Manager and subject to certain
conditions being satisfied.
(m) Segment reporting
Segment information is reported in a manner consistent with the internal reporting provided
to the management of the Manager who conducts a regular review for allocation of resources
and assessment of the performance of the operating segments.
(n) Distribution policy
Distributions for the financial period from the date of constitution of IREIT on 1 November
to 31 December 2014 is based on 100% of IREIT Group’s specified non-taxable income
comprising rental and other property related income from its business of property letting
after deducting allowance expenses (“Distributable Income”).
IREIT will distribute 100% of Distributable Income for financial years ending 31 December
2015 and 2016 and thereafter, IREIT will distribute at least 90% of the annual Distributable
Income.
