REITs: Treasury and SARS Draft Notice on Compliance Requirements

Posted 10 December 2025 Written by Acts Online
Category Tax

Brought to you by SA Legal Academy: National Treasury and the South African Revenue Service (SARS) have published a draft notice for public comment regarding the requirements for Real Estate Investment Trusts (REITs) under the Income Tax Act.

In terms of the Income Tax Act, No. 58 of 1962, the proposed notice sets out the specific requirements and conditions that must be met by companies falling under the definition of a REIT. These entities, which own and operate income-producing fixed property, are subject to distinct tax treatments that necessitate strict adherence to qualifying criteria.

Stakeholders and interested parties are required to submit their comments on the draft notice by 31 January 2026. The proposals aim to formalise the regulatory expectations for maintaining REIT status, ensuring that the fiscal benefits associated with these trusts are applied consistently across the property sector.

Key areas of focus

  • The definition and classification of income-producing fixed property eligible for REIT status.
  • Specific conditions for companies to qualify under the Income Tax Act, No. 58 of 1962.
  • Reporting and disclosure requirements to SARS for REIT-listed entities to ensure ongoing compliance.

What this means for you, your business, or your clients

  • For yourself: No direct individual obligations; impact channelled through firm-level compliance and advisory roles.
  • For your business: Review the draft notice to ensure current property portfolios and corporate structures align with the proposed conditions to avoid the risk of losing REIT tax status.
  • For your clients: Advise property-owning clients on the potential changes to qualifying criteria and the 31 January 2026 deadline for submissions to influence the final regulatory outcome.

Originally published at https://legalacademy.co.za/news/read/real-estate-investment-trusts-treasury-sars-proposals-out-for-comment

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