2% tax on dividend does not apply to profit distributions made to contributors and depositors by KWSP, Lembaga Tabung Angkatan Tentera (LTAT), Amanah Saham Nasional Bumiputera (ASNB), or any unit trust. REIT is one type of unit trust. Always read the report of REIT, they call themselves fund manager. So every clear that income distribution from REIT doesn't need to tax for the 2%.