1 - REIT Country Structure Activity restrictions requirement Income requirement Distribution requirement Taxation USA Companies, trusts Real estate for rents 75% of total value of 75% of gross taxable Must distribute 90% of REIT only taxed on — or associations. assets must be real estate income must be from real ordinary taxable income each undistributed income. Financial securities. assets and government estate related income year. No listing Investors residents at — securities. (including rent from TRS requirement. normal rates and nonresidents subject to conditions). Up to 25% assets can be subject to 35% FIRPTA WHT on 100 or more securities in taxable REIT 95% must be from that real capital gain dividends and persons. subsidiaries (TRS), property and passive 30% on other dividends (DTAs reducing to 20% from income. may reduce the rate). 2018. Exceptions for lodging and health care facilities. UK Company (or Property rental activities 75% of total value of group 75% of group profits must Must distribute 90% of rental REIT scheduler approach — — group of (concessionally assets must relate to the relate to the property rental profits. exempt on rental income and companies). property rental business business. capital gains, company tax Other activities attracting applies to the activities’. ‘other Listed and widely normal company tax. Must be more than held. 3 properties with no single Shareholders withholding tax — property > 40% of of 20% to resident individuals or Penalties if portfolio. nonresidents if out of exempt corporate rental income or gains (DTAs shareholder owns may reduce to 15%). >10%. Country Structure Activity restrictions Asset requirement Income requirement Distribution requirement Taxation
1 - REIT Country Structure Activity restrictions requirement Income requirement Distribution requirement Taxation USA Companies, trusts or associations. No listing requirement. 100 or more persons. Real estate for rents Financial securities. 75% of total value of assets must be real estate assets and government securities. Up to 25% assets can be securities in taxable REIT subsidiaries (TRS), reducing to 20% from 2018. 75% of gross taxable income must be from real estate related income (including rent from TRS subject to conditions). 95% must be from that real property and passive income. Exceptions for lodging and health care facilities. Must distribute 90% of ordinary taxable income each year. REIT — only taxed on undistributed income. Investors — residents at normal rates and nonresidents subject to 35% FIRPTA WHT on capital gain dividends and 30% on other dividends (DTAs may reduce the rate). UK Company (or group of companies). Listed and widely held. Penalties if corporate shareholder owns >10%. Property rental activities (concessionally Other activities attracting normal company tax. 75% of total value of group assets must relate to the property rental business Must be more than 3 properties with no single property > 40% of portfolio. 75% of group profits must relate to the property rental business. Must distribute 90% of rental profits. REIT — scheduler approach — exempt on rental income and capital gains, company tax applies to the ‘other activities’. Shareholders — withholding tax of 20% to resident individuals or nonresidents if out of exempt rental income or gains (DTAs may reduce to 15%). Country Structure Activity restrictions Asset requirement Income requirement Distribution requirement Taxation