New investment vehicle | Philstar.com


Soon there will be a better alternative for those who wish to purchase condominiums and other real estate for investment purposes.

With the release by the Philippine government of the new Real Estate Investment Law Enforcement Rules and Regulations of 2009, Real Estate Investment Trusts (REITS) may finally take off soon in this country.

A REIT is a corporation formed primarily for the purpose of holding income-generating real estate assets. The only way to invest in the REIT is to subscribe for or buy shares of the REIT.

Making money by investing in a REIT seems to be easier than buying a condominium and then finding a tenant or keeping the unit without actually occupying it, waiting for the right time to sell it but being burdened. through property taxes, co-ownership contributions, maintenance and repair costs, among others.

The Republic Act 98561 or the REIT Act requires that a REIT annually distributes at least 90% of its distributable income as dividends to its shareholders no later than the last day of the fifth month following the end of the company’s financial year. Such dividends will only be payable out of the unrestricted retained earnings of the REIT. And this distributable income excludes the proceeds from the sale of the assets of the REIT which is reinvested by the REIT within one year from the date of the sale.

Dividends in cash or real estate paid by a REIT will be subject to a final tax of 10%. In the case of foreign Filipino investors, they are exempt from dividend tax for seven years from the entry into force of the law enforcement tax regulations.

REITs are only permitted to invest in real estate in the Philippines, but they may invest in income-generating real estate outside the country provided that such investment does not exceed 40 percent of its deposited assets and only upon authorization. Special Securities and Exchange Commission. The law also authorizes investments in real estate assets; managed funds, debt securities and listed shares issued by local or foreign non-real estate companies; Cash and cash equivalents ; and other investment opportunities that the SEC may authorize.

At least 75 percent of the REIT’s deposited assets must be invested in or consist of income-generating real estate.

The same law requires that a REIT be a public company which must be listed and, upon listing and after listing, have at least 1,000 public shareholders each owning at least 50 shares of any class of shares which in total , hold at least one-third of the outstanding share capital of the REIT.

However, not all of these benefits have sparked interest in setting up REITs in this country for the past 10 years due to contentious issues in the original IRR.

But the revised TRI has addressed many of them. For example, it lowered the minimum public participation from 40 percent in the first year of listing to at least 33 percent of the outstanding share capital, in accordance with the provisions of the REIT Act. Prior to the change, the IRR also required REITs to increase their free float to 67% within three years of listing.

The Bureau of Internal Revenue also amended Revenue Regulation 13-2011 to exempt from 12% value added tax the transfer of property to a REIT in exchange for its shares, provided the exchange results in a acquisition by the transferor of at least 51 per cent of the outstanding share capital of the transferee.

The BIR also removed the requirement for a REIT to sequester income tax payable from the REIT on dividends declared and deducted from its taxable income, as well as the 50 percent documentary stamp duty given. as an incentive on the transfer of real estate to the REIT.

According to Philippine Stock Exchange chairman Ramon Monzon, many companies have already shown interest in the REIT landscape. In fact, the first listing is expected to take place in the first quarter of this year.

For his part, Finance Secretary Sonny Dominguez said listing REITs on the stock exchange creates a safe opportunity for small investors to participate in the growth of real estate development in the country.

Filipino pride

Mighty Sports Philippines, led by brothers Caesar and Alex Wongchuking, has every reason to be happy.

Just last year, Mighty Sports won the William Jones Cup, beating Chinese host Taipei Blue, three years after winning the same tournament in 2016. And on February 2, Mighty Sports once again made the country proud by winning the Dubai International Basketball. Championship. This is the first time that a non-Middle Eastern team has won the prestigious title in three decades. Mighty won against defending champion Al Riyadi Lebanon, the same team that forced the former to withdraw from the semi-finals and return home with a third place finish.

During the victory party held on February 6 in Manila, head coach Charles Tiu said that while their goal in Dubai was to win, the first game did not look good. . The players, led by captain Renaldo Balkman who was named MVP and naturalized player and veteran of Gilas Andray Blatche, have just started to gel and play better and better, he said.

Other players include Imports Mckenzie Moore and Jelan Kendrick, Future of Philippine Basketball Thirdy Ravena, Gab Banal, Dave Ildefonso, Juan and Javi Gomez de Liano, Jamie Malonzo, Jarell Lim, Isaac Go, Joaqui Manuel, Mikey Williams and PBA stars Joseph Yeo and Beau Belga.

When asked what the future of Mighty Sports looks like, Caesar Wongchuking pointed out that the team only competes in invitational tournaments and focuses on representing the Philippines in international competitions. So nothing in the local scene on the horizon at the moment.

For his part, Mighty Sports Director Angelo Wongchuking said the Mighty Sports Apparel brand emphasizes excellence and is proud to represent the country.

Not so hidden agenda

SWITCHING ON THE WASTEWATER TREATMENT PLAN – The first giant sewage treatment plan built at the Manila Yacht Club began operations after it was put into operation in a simple ceremony led by the Secretary of the Environment and Natural Resources Roy Cimatu (third from right) and was joined by the former MYC commodore. Toto Arellano, Philippine Coast Guard Commander, Rear Admiral George Ursabia, Jr., Deputy Supreme Court Justice Rodil Zalameda, MYC Commodore Bobby Joseph, US Ambassador Sung Yong Kim, Senator Cynthia Villar , Chief Justice Diosdado Peralta and Metro Manila Development Authority Chairman Danny Lim. Two more STPs between MYC and the US Embassy are under construction.

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