Keppel Land expects to book a larger profit of about S$394 million from its Marina Bay divestment, following a positive advance ruling from the tax authorities.
In a filing on the Singapore Exchange, the developer said that the Inland Revenue Authority of Singapore has confirmed it would treat the divestment as capital gain, which is not taxable.
This means that Keppel’s profit from the divestment will be higher by about S$73 million.
The company had last month said it expected to book a net gain of $321 million from the transaction.
Keppel is divesting its one-third stake in Marina Bay Financial Centre Towers 1 & 2 to K-REIT, a property trust it controls.
Source : Channel NewsAsia – 6 Dec 2010