Frasers Hospitality REIT Australia unit sees tax rate rise to 37.5%

With the higher tax, the unit expects a $1.3m drop in distributable income for FY2024.

Frasers Hospitality Real Estate Investment Trust's (FH-REIT) Australia unit, FHT Australia Trust (FHTAT), will face a higher withholding tax rate of 37.5% after failing to meet the condition that no foreign individual holds more than a 10% indirect interest in the trust.

In a bourse filing, FH-REIT disclosed that a share swap between InterBev Investment Limited (IBIL) and TCC Assets Limited (TCCAL) increased the latter's effective stake in Frasers Property Limited (FPL) to 86.89%.

The increase caused a breach of the condition limiting a foreigner's effective interest in FH-REIT and FHTAT to no more than 10%.

With the condition breach, FHTAT will no longer meet the 10% foreign resident individual test, disqualifying it from withholding Managed Investment Trust (MIT) status for FY2024.

In July 2024, FHTAT had qualified for a concessionary 15% withholding tax rate. With the loss of this preferential tax rate, FHTAT's distributable income for FY2024 is expected to decrease by approximately $1.3m.

Follow the link for more news on

Frasers Property

Reaching the people who run Asia's businesses is harder than it used to be.

Inboxes are crowded. Attention is short. The executives you most want to reach — the founders, CFOs, and operators who actually move budgets — are the hardest to find through the usual channels. If you're building a company, a category, or a reputation, you already know this.

We've spent twenty years building the room they read. Singapore Business Review is where senior decision makers in Singapore and across Southeast Asia come for business coverage they can't get elsewhere — in print, online, and in person at the summits and roundtables we host across seven markets.

If you have something these readers should know about — a point of view worth publishing, a product worth their attention, an event worth their time — we'd like to hear what you're trying to do.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia