South Africa UK DTA

Hi, This query relates to the South Africa UK double taxation treaty - According to the treaty (article 10)2(b), dividends taxation by a South African REIT is limited to 15%. According to "DT17353 - Double Taxation Relief Manual: Guidance by country: South Africa: Dividends" published by HMRC - Currently, there are no such investment companies in South Africa. My understanding is thus that the maximum taxable rate for such dividends from South Africa is 10% Guidance by my South African broker and confirmed by SARS (the South African tax authority) is that the rate is indeed 15%, this would contradict HMRC guidance found at https://www.gov.uk/hmrc-internal-manuals/double-taxation-relief/dt17353 The apparent contradiction between the DTA and guidance stems from South Africa having a very active REIT market and DT17353 implying that there are no property investment companies in South Africa, are you able to reference publications that make it explicit that South African REIT's are not, at this time, considered to be property investment companies?. If not, could you provide clarification on the present status as this is critical to the proper completion of my self-assessment. Many Thanks,

Hi
UK-REITS and NON UK REITS are vehicles that allows an investor to obtain broadly similar returns from their investment, as they would have, had they invested directly in property.  In the hands of the shareholder, the profits paid out are known  as property income distributions or dividends (PIDs) and are taxable in the same way as profits of a UK property rental business. Where Non UK REITs are distributed, the profits and foreign tax deducted are declared in the foreign sections under 'income from land and property abroad', where a foreign tax credit can be claimed.  They are not taxed as dividends, but as property income.  Foreign tax credit relief is restriced in a similar way to dividends