On August 1, 2020, the Securities and Exchange Commission of Sri Lanka (SEC) announced the introduction of REITS as an extension of the current fiduciary code and the implementation of the new rules that came into effect on July 31, 2020 in the form of a gazette notification published by the SEC. These rules, which are comprehensive, govern the establishment and behaviour of a Sri Lankan RSP. Special provisions have been introduced for the verification of ownership and valuation of real estate that will be part of the RSP assets. Among the requirements is the mandatory distribution of approximately 90% of income to unitholders, which is currently not required for any of the publicly traded companies. In addition, due to the availability of the tax pass through mechanism for unit trusts, REITs could also benefit from a viable business concept for Sri Lanka, which opens up new horizons for entrepreneurs to drive the real estate sector to higher heights. The information in the hypothetical growth section was not authorized by the State of Ohio. As long as FS Credit REIT qualifies as a REIT, we are generally not subject to U.S. federal income tax on the net taxable income we distribute each year to our shareholders. The company indicated that the nav increase in July 2020 was mainly due to the sale of its liquid CMBS portfolio at a premium on its holding value; its loan portfolio, which generates revenues above the current payout ratio; and the sale of its liquid CMBS portfolio, which provides additional liquidity to fund new transactions.
Under u.S. Federal Income Tax Act, a RSP is “any company, trust or association acting as an investment agent, specializing in real estate and real estate mortgages,” in accordance with the Domestic Income Code Section 856.  The federal income tax rules for REITs are mainly found in Part II (Sections 856 to 859) of Sub-Chapter M of Chapter 1 of the Internal Income Code. Since a RSP has the right to deduct dividends paid to its owners (usually referred to as shareholders), reit can avoid bearing all or part of its debts for U.S. federal income tax. To qualify as an RSP, an organization makes a “choice” by filing a Form 1120-REIT with the Internal Revenue Service and meeting certain other requirements. The purpose of this designation is to reduce or eliminate corporation tax and thus avoid double taxation of owners` income. In return, REITs must pay at least 90% of their taxable income into the hands of investors. A RSP is a business that owns income real estate and in most cases operates.
REITs own many types of commercial buildings, from office and apartment buildings to warehouses, hospitals, shopping malls, hotels and even Timberlands. Some REITs are also looking at real estate financing. The REIT structure has been designed to offer a real estate investment structure similar to that which investment funds offer to equity investments.  The rules were introduced by the Saudi Capital Markets Authority in July 2006. The regulation did not allow the funds to be traded on the stock exchange and to force all funds to be structured by an investment company licensed by CMA, with the presence of a real estate developer and a few other key people.  REITs were introduced in Brazil in 1993 by Law 8668/93 and were first regulated by Instruction 205/94 and now by CVM Instruction 472/08 (Comissão de Valores Mobiliários – the Brazilian equivalent of SEC). . . .