Title page for ETD etd-05052010-152321

Document Type Master's Dissertation
Author Fourie, Michiel Philippus Willem
URN etd-05052010-152321
Document Title Attracting investment into South African property investment vehicles : evaluating tax
Degree MCom
Department Taxation
Advisor Name Title
Prof M Cronje Supervisor
  • property unit trust
  • company
  • CISP
  • collective investment scheme in property
  • tax legislation
  • real estate investment trust
  • REIT
  • PUT
  • property investment vehicles
  • PLS
  • property loan stock
Date 2010-04-19
Availability unrestricted

South African property investment vehicles consist of collective investment schemes in property (CISPs), also known as property unit trusts (PUTs) and property loan stock (PLS) companies. The application of sections 25B(1), 11(s), 10(1)(k)(i)(aa) and 64B(5)(b) of the Income Tax Act 58 of 1962 (“the Act”) and paragraph 67A(1) of the Eighth Schedule to the Act result in these property investment vehicles being taxed based on their legal form, that of a trust versus a company, rather than on their common purpose. The South African Revenue Service recognised these inconsistencies in the 2007/8 budget tax proposals and proposed that it be reviewed. In December 2007, National Treasury released a discussion paper on the reform of the listed property investment sector in South Africa. The discussion paper is aimed at adopting a real estate investment trust (REIT) regime in South Africa to make South African property investment vehicles more attractive to foreign investors as well as to address the current tax inconsistencies and fragmented regulation of the South African listed real estate sector. In this study, the current inconsistent tax treatment of these property investment vehicles is reviewed, both as to how they apply to the property investment vehicle and to their respective investors. This study further reviews how REITs in selected other countries are regulated and taxed and National Treasury’s proposals as to how REITs applicable in South Africa should be regulated and taxed.

Copyright © 2009, University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria.

Please cite as follows:

Fourie, MPW 2009, Attracting investment into South African property investment vehicles : evaluating tax, MCom dissertation, University of Pretoria, Pretoria, viewed yymmdd < http://upetd.up.ac.za/thesis/available/etd-05052010-152321/ >

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