AL-SALAM REIT ANNUAL REPORT 2018

AL-SALĀM REIT ANNUAL REPORT 2018 132 5. GROSS RENTAL INCOME The Group The Fund 2018 2018 2017 RM RM RM Base rental income 65,044,487 65,044,487 63,247,755 Service charges 5,887,300 5,887,300 5,722,536 Percentage rent 3,623,260 3,623,260 4,363,054 Unbilled rental income 853,005 853,005 - 75,408,052 75,408,052 73,333,345 6. OTHER INCOME The Group The Fund 2018 2018 2017 RM RM RM Timing of revenue recognition: At a point in time Parking income 3,225,731 3,225,731 3,052,740 Event and advertising income 3,516,965 3,516,965 3,646,677 6,742,696 6,742,696 6,699,417 7. INVESTMENT INCOME The Group The Fund 2018 2018 2017 RM RM RM Income from Islamic deposit placements 1,025,884 1,025,884 1,187,792 8. INCOME TAX Pursuant to the Section 61A of the Income Tax Act 1967, where 90% or more of the total income of the unit trust is distributed to the unitholder, the total income of the unit trust for that year of assessment shall be exempted from tax. The Manager also expects to distribute the net income within two months from the end of each inancial year and accordingly, no estimated current tax payable or deferred tax is required to be provided in the inancial statements. Taxation of the Unitholders Pursuant to Section 109D(2) of the Malaysian Income Tax Act 1967, where 90% or more of the Real Estate Investment Trust’s (“REIT”) total taxable income is distributed by the REIT, distributions to unitholders (other than resident corporate investors) will be subject to tax based on a withholding tax mechanism at the following rates: Unitholders Tax rate Individuals and all other non-corporate investors such as institutional investors 10% Non-resident corporate investors 24% Resident corporate investors are required to report the distributions in their normal corporate tax return and subject to the normal corporate tax rate of 24%.