LIPPO-MAPLETREE - Lippo Malls Indonesia Retail Trust - Investor ...

TaxationSINGAPORE TAX IMPLICATIONSThe following summary of certain Singapore income tax consequences of the purchase, ownership anddisposition of the Units is based upon laws, regulations, rulings and decisions now in effect, all of which aresubject to change (possibly with retroactive effect). The summary does not purport to be a comprehensivedescription of all of the tax considerations that may be relevant to a decision to purchase, own or dispose ofthe Units and does not purport to apply to all categories of investors, some of which may be subject tospecial rules. Investors should consult their own tax advisers concerning the application of Singaporeincome tax laws to their particular situations as well as any consequences of the purchase, ownership anddisposition of the Units arising under the laws of any other taxing jurisdiction.Taxation of LMIR TrustLMIR Trust is liable to Singapore income tax on:• income accruing in or derived from Singapore; and• unless otherwise exempt, income derived from outside Singapore which is received in Singapore ordeemed to have been received in Singapore by the operation of law.Dividends from the Target Singapore SPCsLMIR Trust’s income will comprise substantially dividends received from its holding of ordinary shares inthe Target Singapore SPCs. Provided that the Target Singapore SPCs are tax residents of Singapore forincome tax purposes, these dividends will be one-tier (tax-exempt) dividends and hence exempt from tax inthe hands of the Trustee.Gains on disposal of sharesSingapore does not impose tax on capital gains. In the event that LMIR Trust disposes of its ordinaryshares or redeemable preference shares or both in the Target Singapore SPCs, gains arising from such adisposal will not be liable to Singapore income tax unless the gains are considered income of a trade orbusiness. The gains may also be liable to Singapore income tax if the shares were acquired with theintention or purpose of making a profit by sale and not for long-term investment purposes.Gains arising from the sale of the ordinary shares or redeemable preference shares or both in the TargetSingapore SPCs, if considered to be trading gains, will be taxable on the Trustee.Redemption of redeemable preference shares in the Target Singapore SPCsAny proceeds received by LMIR Trust from the redemption of its redeemable preference shares in theTarget Singapore SPCs at the original cost of the redeemable preference shares are capital receipts andhence not taxable on the Trustee.Taxation of the Singapore SPCsThe Singapore SPCs are liable to Singapore income tax on:• income accruing in or derived from Singapore; and• unless otherwise exempt, income derived from outside Singapore which is received in Singapore ordeemed to have been received in Singapore by the operation of law.Dividends from the Indonesian SPCsProvided that the Singapore SPCs are tax residents of Singapore for income tax purposes, any dividendsreceived in Singapore by the Singapore SPCs from the Indonesian SPCs will be exempt from Singaporeincome tax under Section 13(8) of the Income Tax Act, if the following conditions are met:• in the year the dividends are received in Singapore, the headline corporate tax rate in Indonesia is atleast 15.0%;249