Malaysian REIT Managers Association Malaysian REIT Managers Association & &

APREA Malaysia ChapterAPREA Malaysia ChapterJoint MeetingJoint Meeting

Sunway Resort Hotel & SpaSunway Resort Hotel & SpaCopacabana Room, Level 12 , Subang JayaCopacabana Room, Level 12 , Subang Jaya

2424thth June 2013 June 20139.00 a.m.9.00 a.m.

mrmaMalaysian REIT Managers Association

• Welcome Speech by the Dato’ Jeffrey Ng Tiong Lip• Update on “Claim of Capital Allowance and/or Industrial Building • Allowance at REIT level and the application of s109D withholding tax”.• by Ms Leong Kit May CFO Axis REIT Managers Bhd

• Q&A• Overview of APREA by Mr. Peter Mitchell CEO APREA

• 2012 Launch of IPD's Pan Asia Returns by Kevin Swaddle- Director of IPD's services in Asia

• Q&A

• Close

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Todays Program

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Welcome by Dato’ Jeffrey Ng Tiong Lip

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Dato’ Jeffrey Ng Tiong Lip CEO/ ED Sunway REIT Managers Sdn Bhd

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MRMA Updates

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Ms Leong Kit MayCFO/ ED AXIS REIT Managers Bhd

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“Claim of Capital Allowance and /or Industrial Building Allowance on the REIT level & the

application of S109D withholding tax”

1st Update

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1st Update

Public Ruling No. 9/2012 dated 26 November 2012 – sets out the IRB’s interpretation of the law, a REIT which owns hotel building is not allowed to claim industrial building allowances (IBA) as it is not deemed to be an operator of the hotel and cannot be said to be running a hotel business

On 29 May 2013, the MRMA (with the assistance from Ernst and Young Tax Consultants Sdn Bhd) had written to the IRB requesting them to re-examine the above ruling with the relevant paragraphs within Schedule 3 pursuant to an IBA claim, which stated the criteria to fulfill are that :

The taxpayer must be the owner of the industrial building; The taxpayer must have incurred the expenditure on the purchase of the said industrial building; andParagraph 60, Schedule 3 allows an owner of an industrial building to claim IBA if the tenant uses the building as an industrial building.

A copy of the said letter has also been copied to the Ministry of Finance.

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“Implementation of MRFS 10 Consolidated Financial Statements “

2nd Update

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MFRS 10 – Consolidated Financial Statements

Effective for annual reporting periods beginning on or after 1 January 2013.

MFRS 10 has revised the definition of CONTROL => focuses on the need to have both power and variable returns.

Trigger the need to examine the relationship between REIT Manager and the REIT on the potential implication of MFRS 10.

2nd Update

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Malaysian REIT Managers Association

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Q&AQ&A

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APREA Malaysia Chapter

Presentation on APREAPresentation on APREAMr. Peter Mitchell Mr. Peter Mitchell

Chief Executive OfficeChief Executive OfficeAPREA APREA

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MRMA and APREA Malaysian Chapter Joint Meeting

Presentation by Dr. Kevin SwaddlePresentation by Dr. Kevin Swaddleonon

2013 Launch of IPD's Pan Asia Returns2013 Launch of IPD's Pan Asia Returns

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Q&AQ&A

MRMA and APREA Malaysian Chapter Joint Meeting

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Thank YouThank You

MRMA and APREA Malaysian Chapter Joint Meeting