• Friday, June 21, 2024
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Stakeholders see double taxation as challenge to REITs investment

Stakeholders see double taxation as challenge to REITs investment

Stakeholders in Real Estate Investment Trusts (REITs) have identified double taxation as challenge to investment in the sector, even as they clamour for enabling legislation.

In order to make the Real Estate Investment Trusts (REITs) a tax-effi¬cient vehicle for invest¬ment, there is an urgent need for an enabling leg¬islation, they said.
They called for proper engagement between the operators in the industry and the government for a framework that allows RE¬ITs to operate effectively and efficiently.

Read also: REITs market in positive outlook as investment interest in stocks, others dims

While presenting a speech on ‘REITs and Taxa¬tion in Nigeria’ at Real Estate Investment Trusts seminar organised by FSDH Asset Management Limited, in Lagos, Taiwo Oyedele, partner, tax and corporate advisory, PwC, said that more than just engaging with the govern¬ment, there is a need to back the efforts up with capacity to enable inves¬tors, industries and gov¬ernment have a win-win situation.

Oyedele further ex¬plained that having a leg¬islation to deal with REITs issues will be needed most as it will have a long term impact, adding that the FIRS should work with the industries as well to establish a frame work leveraging target initiative of the sector.
“Government should understand the numerous potentials in the scheme; understand that as key players in the society, we are helping government solve some problems. So, the government should help build consensus be-tween tax authorities and industries to make REITs perform better,” he added.