L12-_Unit_trust_REIT.ppt - UNIT TRUST INTRODUCTION • Unit...

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UNIT TRUST INTRODUCTIONUnit trust is created by a trust deed entered into between amanagement company and a custodian trustee to be held onbehalf of the investors, who are known as unit holdersManagement company is the company that establish the fundTrustee acts as a custodian of these asset and is responsible toprotect the interest of the unit holderUnit trust is a trust where the beneficiaries’ interest in the trustassets are represented by unitsUnit trust mainly invest in stocks or shares in KL stock exchangeand Government bondsSlide 5 of 26
2TRUSTEEINVESTORSTrustdeedIssuesunittrustManagesassetsSERVICERINVESTSUNIT TRUSTMANAGEMENTCOUNIT HOLDERSFunds
Common UT Income1.Gains from realisation of investments: Exempted2.Interest: mostly exempted3.Dividends : 1 tier - exempted4.Rental-MSI taxable3
Exempt Income of UTFSIInterest income from:Securities or bond issued by the G’ovtDebenture other than convertible loan stock, approvd by SCBon Simpanan MalaysiaLicensed financial institution or Islamic bank 1983.Any savings certificates issued by the G’ovt [para 19 Sch 6]Islamic securities (including sukuks) originating fromM’sia, other than convertible loan stock,and approved by the SC orLabuan Financial Services Authority[subp 33B Sch 6],Dividends distributed out oftheseexempt UT income is exempted inthe hands of unit holders.4
3. CA for Rental Incomes 63A1.Rental Income is taxed when due or paid in advanced2.CA is permitted. Eg. CA for lifts, escalators, air-conditioning,fire fighting equipments4.Rate of CA is a flat 10% of QPE.5.Excess CA for a YA would be disregarded.5
QUALIFYING CAPITALEXPENDITURERefers to plant and machinery used for the purpose of renting outproperties.Expenditure incurred in the alteration of an existing building for thepurpose of installing that machinery or plant and other incidentalexpenditure provided that such expenditure does not exceed 75% ofthe aggregate expenditureExpenditure incurred in preparing or levelling land in order to prepare asite for the installation of that machinery provided that suchexpenditure does not exceed 10% of the aggregate expenditure6RMLifts2,000Escalators3,000Air-conditioning2,000Fire fighting equipments3,000CA = 10% x 10,000 = 1,000.
PERMITTED EXPENSESNormal deduction: S33(1) expensess63B :Fraction ofPermitted expenses deductible.

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Term
Summer
Professor
N/A
Tags
Taxation in the United States, Tax exemption, REIT

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