YOUR TAX OBLIGATIONS AS A UNITHOLDER OF KEPPEL PACIFIC OAK US REIT
As a unitholder of Keppel Pacific Oak US REIT ("Unitholder"), you are required to provide certain documentation to the United States Internal Revenue Service ("IRS"). This is to allow the IRS to establish if you are eligible for exemption from US withholding tax under the United States Internal Revenue Code of 1986 as amended (the "IRC"), which includes the United States Foreign Account Tax Compliance Act ("FATCA"), on certain income derived by Keppel Pacific Oak US REIT from the United States ("US"), in which you are entitled to as a Unitholder.
If you do not provide the required documentation, the US withholding tax that will be applied to such income would be at the maximum tax rate, currently 30%, and the amount of distributions that you will receive from Keppel Pacific Oak US REIT may be reduced by the applicable amount of US withholding tax attributable to the income you are entitled to.
Specifically, Unitholders that are not US persons must establish their status for FATCA purposes and their eligibility for an exemption from US withholding tax on distributions from Keppel Pacific Oak US REIT attributable to certain interest receipts from the US by providing an applicable US IRS Form W-8 (or "US Tax Form") and other documentation or information that may be requested from time to time. For non-US Unitholders who are individuals and whose investment in units of Keppel Pacific Oak US REIT are not effectively connected with their conduct of a trade or business in the US, the applicable Form W-8 is an IRS Form W-8BEN. The IRS Form W-8BEN is only for individuals and will not be accepted if submitted by a non-individual, for example, from a corporation or any other type of entity.
Unitholders must also provide updates of any changes to their status for FATCA purposes, including information relating to their name, address, citizenship, personal identification number or tax identification number, tax residencies, and tax status.
A Form W-8 will generally remain valid from the date signed until the last day of the third succeeding calendar year. For example, a form signed on 31 December 2017 will remain valid through 31 December 2020. All US Tax Forms cease to be valid upon any change in circumstance that renders a previously submitted US Tax Form inaccurate (in which case, a new US Tax Form will have to be submitted within 30 days).
If a Unitholder fails to provide or update relevant information necessary for compliance with US tax withholding requirements, including FATCA, or provide inaccurate, incomplete or false information or where a US Tax Form previously returned by that Unitholder ceases to remain valid, amounts payable by Keppel Pacific Oak US REIT to such Unitholder may be subject to deduction or withholding in accordance with US tax law and any intergovernmental agreements. Accordingly, the distributions receivable by such Unitholder may be reduced in these circumstances.
Boardroom Corporate & Advisory Services Pte. Ltd, the Unit Registrar of Keppel Pacific Oak US REIT, will dispatch US Tax Forms to each non-US Unitholder that does not have valid documentation on file prior to Keppel Pacific Oak US REIT making any distributions to Unitholders.
The relevant U.S. tax forms for Unitholders who are US persons/entities may be downloaded from the US Internal Revenue Service website at http://www.irs.gov
Unitholders who do not submit the required US IRS tax forms will be subject to US withholding tax on distributions payment when due to them and may not receive the full amount of their entitlement to distributions.
How to file for tax exemption:
Step 1: Fill up forms
For Individual Unitholder
A natural person whose investment in Units is not effectively connected with its conduct of a trade or business in the US.
For Entities Unitholders (Corporate)
An entity that is disregarded as separate from an entity that is not a foreign intermediary for US federal income tax purposes and for which its investment in the Units is not effectively connected with its conduct of a trade or business in the US.
For Depository Agents and Nominees
Acting as a foreign intermediary (that is, acting not for its own account, but for the account of others as an agent, nominee, or custodian).
Mail forms to Unit Registrar before the time stipulated by Unit Registrar.
Boardroom Corporate & Advisory Services Pte. Ltd.
50 Raffles Place
#32-01 Singapore Land Tower
Restriction on Ownership of Units
The Trust Deed prohibits any Unitholder or other person from directly or indirectly owning in excess of the Unit Ownership Limit, being 9.8% of the outstanding Units, subject to any increase or waiver pursuant to the terms of the Trust Deed and on the recommendation of the Manager. The Trust Deed provides that Units held directly or indirectly by any person in excess of the Unit Ownership Limit will be subject to Automatic Forfeiture. While forfeited Units are held by the Trustee, all rights attributable to those Units, such as the right to vote and the right to receive distributions, will be held by the Trustee; the Unitholder from whom the Units are forfeited shall have no right to vote or receive distributions arising from such Units.
The Trustee (on the recommendation of the Manager) will have the right and power to dispose of Units subject to Automatic Forfeiture, and upon such disposal the Unitholder from whom the Units are forfeited will receive the proceeds (net of any commissions and expenses) from the disposition, but not in excess of (a) the price paid by such Unitholder for the forfeited Units or (b) if such Unitholder did not give value for the forfeited Units in connection with the event causing the Units to be forfeited (e.g. in the case of a gift, a non-pro rata Unit buy-back, a non-pro rata Unit consolidation or other corporate action where no acquisition or transfer of Units by a Unitholder takes place but has the result of increasing a Unitholder's proportionate unitholdings), the market price of the Units on the day of the event causing the Automatic Forfeiture, in each case less certain distributions received by the Unitholder, any excess shall be donated by the Trustee to a charitable, philanthropic or benevolent organisation or purpose nominated by the Manager.
For the avoidance of doubt, the Automatic Forfeiture is effective automatically, whether or not the Trustee or the Manager is aware of the change in ownership or aware of the fact that the Unit Ownership Limit has been breached and without any requirement for notice by the Trustee or the Manager. Unitholders are advised to manage their interests in the Units so as not to breach the Unit Ownership Limit and trigger the Automatic Forfeiture.
Distributions will be declared in US dollars. Each Unitholder will receive his distribution in Singapore dollars equivalent of the US dollar distribution declared, unless he elects to receive the relevant distribution in US dollars by submitting a "Currency Election Form" by the relevant cut-off date.
Save for approved depository agents (acting as nominees of their customers), each Unitholder may elect to receive his entire distribution in Singapore dollars or US dollars and shall not be able to elect to receive distributions in a combination of Singapore dollars and US dollars.
CDP, the Manager, the Trustee or Keppel Pacific Oak US REIT shall not be liable for any loss arising from the conversion of distributions payable to Unitholders from US dollars into Singapore dollars.
Unitholders who require assistance in completing the required forms can email email@example.com.