Taxation of Unitholders

Tax Deferral

Dundee International REIT pays a monthly distribution to its Unitholders of which only a portion is taxable. The non-taxable portion of any net realized capital gains and any other amount in excess of the net income of Dundee International REIT payable to the Unitholder will not generally be included in the Unitholder's income for the year.

The Trust has determined that the distributions should be treated in the following manner:

2013 2012 2011
Foreign non-business income
47.6% 39.0% 44.9%
Return of capital
52.4% 61.0% 55.1%

The link below shows record dates with distributions paid and taxable income that should be allocated:



 

Non-Resident Withholding Tax

Tax will be withheld on 100% of the distribution at the following rates:

US 15%
Other 25%

Once the breakdown of the distribution is determined, withholding tax paid on the return of capital portion of the distribution is refundable. Investors may be eligible to receive a refund once the breakdown of the distribution payment is known.

In addition, for non-residents participating in the Distribution Reinvestment Plan (DRIP), non-resident witholding tax is deducted from the non-residents' distributions prior to determining the reinvestment amount and the 4% bonus.



Tax Treatment of 2013 distributions

Management estimates that 55% of the distribution to be made by the REIT in 2013 will be tax deferred.


Income Tax Considerations

Distributions

A holder of Dundee International REIT Units is generally required to include the taxable income received from the REIT in his or her income tax return. The taxable portion of the distribution has to be included even if the distribution is reinvested under the Distribution Reinvestment and Unit Purchase Plan.

Canadian Unitholders will receive a Statement of Trust Income Allocations and Designations (T3) for income tax purposes. You should receive a statement either from your financial institution or stockbroker if you hold your Units in an account or directly from Dundee International REIT's transfer agent, Computershare Trust Company of Canada, if you are a registered Unitholder and are in possession of a Unit Certificate.

Non-resident Unitholders should receive a Statement of Amounts Paid or Credited to Non-Residents of Canada (NR4) with the taxable income reported in box 16 and the non-resident tax withheld shown in box 17.



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