REAL ESTATE INVESTMENT TRUSTS: TREASURY, SARS PROPOSALS OUT FOR COMMENT

REAL ESTATE INVESTMENT TRUSTS: TREASURY, SARS PROPOSALS OUT FOR COMMENT

• 10 December 2025
• Taxation
• SA Legal Academy

National Treasury and the South African Revenue Service have called for input by 31 January on a draft notice setting out the requirements and conditions to be met by companies falling under the 1962 Income Tax Act’s definition of real estate investment trusts (REIT). This is noting that such companies own and operate income-producing fixed property.

Among other things, the draft notice proposes:

• the percentage of REIT assets ‘directly or indirectly attributable to immovable property and interest in a “property company”’
• the minimum value of a REIT’s gross assets
• the percentage of REIT revenue to be derived from rentals
• total/consolidated liabilities as a minimum percentage of total/consolidated assets, and
• the minimum requirements of a REIT’s risk management policy.

A consultative workshop is expected to follow.

• draft notice

Published by SA Legal Academy Policy Watch

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