AL-SALAM REIT ANNUAL REPORT 2019

7. INVESTMENT INCOME The Group The Fund 2019 2018 2019 2018 RM RM RM RM Income from Islamic deposit placements 1,067,052 1,025,884 1,067,052 1,025,884 8. 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 reporting period and accordingly, no estimated current tax payable or deferred tax is required to be provided in the financial 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%. 9. EARNINGS PER UNIT The gross and net earnings per unit, which are calculated based on the profit before tax and profit for the financial year of the Group and of the Fund, respectively, divided by the weighted average number of units in circulation as of 31 December 2019, are as follows: The Group The Fund 2019 2018 2019 2018 RM RM RM RM Earnings attributable to unitholders: Profit before tax and profit for the year 36,152,644 40,301,411 36,218,863 40,326,431 Number of units 580,000,000 580,000,000 580,000,000 580,000,000 Gross earnings per unit (sen) 6.23 6.95 6.24 6.95 Net earnings per unit (sen) 6.23 6.95 6.24 6.95 AL-SALĀM REIT • 126 ANNUAL REPORT 2019 For The Financial Year Ended 31 December 2019 (Cont’d) Notes To The Financial Statements