Tax Treatment of Real Estate Investment Trusts (REITs)

Section 41, Finance Act 2013 introduced a tax regime for Real Estate Investment Trusts (REITs). REITs are companies whose income is derived from the rental of commercial and/or residential property. REITs are not chargeable to either corporation tax in respect of income from their property rental business or chargeable gains accruing on disposal of assets of their property rental business. A REIT may be a single company or a group of companies.

The relevant legislation is contained in Part 25A – sections 705A to 705Q of the Taxes Consolidation Act (TCA) 1997. Sections 153(4A) and 172D(3B) of the TCA are also of relevance in this regard.

Revenue has published a new Tax and Duty Manual Part 25A-00-01. This manual sets out the conditions applying to a REIT, the taxation regime applicable and the associated notifications and annual statements required by Revenue.

31 March 2015