Global

Details

  • Service: Tax, Global Mobility Services, International Tax
  • Type: Regulatory update
  • Date: 8/1/2014

South Africa - REIT regime not expanded to “unlisted REITs” 

August 1: A 2014 draft tax law bill, published 17 July 2014 by the Department of National Treasury, includes a variety of proposed amendments—including provisions concerning the real estate investment trust (REIT) tax regime, but not including anticipated changes that would expand the REIT regime to apply to “unlisted REITs.”

REIT regime

The REIT tax regime was first introduced in South Africa in 2013.


While generally viewed as a favorable development, the 2013 REIT tax legislation resulted in certain severe tax implications for REITs and/or the REIT investors. Also, the 2013 regime applied to “listed REITs” only.

Draft amendments

Initial indications were that the REIT draft proposals would expand the REIT regime to unlisted entities; however, these measures were not included in the July 2014 release.


Rather, the proposed amendments to REIT legislation in the draft bill are viewed as being generally contextual in nature.


Tax professionals have expressed hopes that the final 2014 Tax Laws Amendment Bill (expected later this year) may include the desired REIT amendments.


Read a July 2014 report prepared by the KPMG member firm in South Africa: Main concerns on the Real Estate Investment Trust legislation have not yet been addressed (REIT)




©2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.


The KPMG logo and name are trademarks of KPMG International.


KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.


The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.


Direct comments, including requests for subscriptions, to us-kpmgwnt@kpmg.com.
For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

+ 1 202 533 4366

1801 K Street NW
Washington, DC 20006.

 

Share this

Share this

Subscribe

Subscribe to receive the latest TaxNewsFlash email alerts (you must select the option for TaxNewsFlash)


Already a Subscriber? Login


Not a member? Subscribe now