Dáil Éireann Debate, Tuesday - 27 September 2016
216. Deputy Richard Boyd Barrett asked the Minister for Finance the cost of abolishing all tax breaks specific to REITs including CGT and rental income, including the projected yield in CGT over the next five years. [27500/16]
Amharc ar fhreagraA Real Estate Investment Trust (REIT) is a collective investment vehicle designed to hold properties in a tax neutral manner. The function of the REIT regime is to eliminate the double layer of taxation that is usually associated with holding properties in a corporate or collective vehicle. A REIT is exempt from any tax on its qualifying income and gains from rental property, however, the REIT is obliged to distribute 85% of its profits to shareholders. Individuals are liable to tax at their marginal rates, corporates are liable to tax at 25% and for all foreign investors, the REIT will withhold DWT at the standard tax rate of 20%.
I am advised by Revenue that based on information available, that is not possible to estimate the cost of abolishing all tax exemptions specific to REIT, nor is it possible to estimate the projected yield in Capital Gains Tax in such a measure.
