Introduction to the Annual Declaration Form for Designated Unit Trust in Singapore
The Annual Declaration Form for a Designated Unit Trust (DUT) is an official document required by the Inland Revenue Authority of Singapore (IRAS) to enable qualifying unit trusts to claim tax benefits under the DUT scheme. This form is essential for trustees managing eligible unit trusts to demonstrate compliance with the scheme’s conditions and to secure the associated tax incentives for each assessment year.
Purpose and Scope of the Form
The primary purpose of this form is to confirm that the unit trust continues to meet the qualifying conditions set by IRAS throughout the basis period for the relevant year of assessment. It applies to both new and existing DUTs, including umbrella funds with multiple sub-funds, and must be submitted annually alongside the trust's tax return (Form UT).
Who Should Submit the Form?
The form must be completed and submitted by the trustee of a unit trust that intends to claim DUT tax benefits for a specific year of assessment. This includes:
- Unit trusts included under the Central Provident Fund Investment Scheme (CPFIS) for the entire basis period from 2014 onward, or
- New unit trusts constituted and included under CPFIS during the relevant basis period.
Trusts that are included under CPFIS only for part of the basis period or are outside the scope of CPFIS are required to use a different form or process.
Key Conditions for Eligibility
To qualify for the DUT scheme, the unit trust must meet several criteria throughout the basis period, including:
- The trust is a collective investment scheme authorized under section 286 of the Securities and Futures Act (SFA), with units offered to the public for subscription.
- The fund manager holds a capital markets services licence for fund management under the SFA or is exempted from such licensing requirements.
- The trustee is a tax resident in Singapore.
- The trust is not a real estate investment trust (REIT) or a property trust investing directly in immovable properties in Singapore.
- The trust has not previously enjoyed other tax incentives (except for those under the CPFIS).
Step-by-Step Procedure for Filling Out the Form
1. General Information
Provide details such as the name of the unit trust, sub-fund (if applicable), date of constitution, and the name and address of the fund manager and trustee. Include the country of incorporation for the trustee and the trust’s income tax reference number.
2. Declaration of Inclusion and Tax Incentives
Indicate whether the trust was included under or excluded from CPFIS during the basis period and specify the relevant dates. Confirm if the trust is claiming the DUT tax benefit for the first time or has previously enjoyed other tax incentives.
3. Confirmation of Conditions
Answer questions regarding the trust’s status concerning other tax incentives and its compliance with the scheme’s conditions. For example, confirm that the trust is managed by a licensed fund manager in Singapore and that it does not invest directly in immovable properties.
Important Deadlines and Submission Details
The completed declaration form must be submitted annually, together with the trust’s Form UT tax return, to IRAS at the following address:
IRAS – Compliance and Small Volume Taxes Branch 55 Newton Road Revenue House Singapore 307987Submission should be made promptly to avoid disqualification from the DUT tax benefits. Late or incomplete submissions will render the trust ineligible for the scheme for that assessment year.
Additional Notes and Clarifications
Trustees should attach relevant supporting documents, such as letters confirming inclusion or exclusion from CPFIS. For any uncertainties or further clarifications, IRAS provides helplines at 6351 3360 / 6351 3363 or email trust@iras.gov.sg.
It is crucial to complete all sections accurately and thoroughly, as the form is expected to take approximately 10 minutes to fill out with all necessary information on hand.
Conclusion
The Annual Declaration Form for a Designated Unit Trust is a vital document for trustees seeking to maintain their DUT tax benefits. Proper completion and timely submission ensure continued eligibility and compliance with IRAS regulations, supporting the trust’s tax planning and investment objectives within Singapore’s regulatory framework.
