The publication of new listing requirements that will facilitate the South African Real Estate Investment Trust (REIT) structure, will likely see most listed property companies converting to the new dispensation as a result of the tax benefits provided.
Under the new tax dispensation, a SA REIT will be able to deduct all distributions paid to shareholders or linked unit holders as an expense. The REIT will also be exempt from Capital Gains Tax (CGT) when it sells property at a profit.
Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.