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Thread: Income from listed JSE property - how is it treated?

  1. #1
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    Income from listed JSE property - how is it treated?

    Is it classified as "interest" and therefore the around R23k tax exclusion applies? How is the rest then taxed?

    Or does it get added to income?

    I always thought it was the latter but was told it was the former over the weekend by someone that should know.

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    It seems it is interest.
    Last edited by CLIVE-TRIANGLE; 12-Mar-15 at 07:40 AM. Reason: I should learn to read properly

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    I guess rental income on a private property also be classified as interest and not income then? On a side topic, what about short term lets, self catering surely at some point it would be listed as income.

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    From what I can see is there are two types of JSE listed properties and the most popular is very similar to unit trusts. Besides the movements which are CGT items, the income is normally declared as interest.

    But in truth I have not worked with this stuff, only read what the JSE has to say. If the person who advised you has experience with this, then certainly trust his advise before mine.

    Rental income is different, in that you normally own the property that is let and it is classed as rentals received. It is also possible to derive rent from a sub-let. For a natural person this falls into the same bucket as other non-employment income. For a natural person, the same would apply to short-term lets. What sets them aside from employment income is simply that related expenses can be deducted.

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    Email problem Mike Simmonds's Avatar
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    My question would be how often this "income" is received.

    I agree with Clive that it is often similar to Unit Trusts, however there is usually a interest portion (taxable) (subject to the R 23 800 exemption) and a dividend portion (tax free)

    Normally one would receive a IT3(b) certificate to detail the above.

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    Gold Member Houses4Rent's Avatar
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    I am with Mike. They must issue a certificate to tell you what it is.
    Houses4Rent
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