1. CONTENTS (1) RESEARCH OBJECTIVES The government enforced the law of real estate investment trusts (REITs) in July 1, 2001. In this law, REITs is defined as the company which is established for the Purpose of investing and managing assets in real estate. For such REITs trusts to make it successful, the tax must be a principal factor because the company decides on investment not before-tax but after-tax. So, this study examines the present taxation and discusses the problem on REITs in light of the owner, company and investor. (2) RESEARCH METHODS This study investigate current taxation system on the law of real estate investment trusts from the various literatures and related with the real estate investment trusts. And reform proposals on taxation of real estate Investment trusts. (3) RESEARCH FINDINGS I suggest the followings; First, when REITs does business with the owner and investor, the tax burden should be not larger than that before this business. Second, such taxation should not impede the tax neutrality and distort investment decision. 1bird, taxation about real estate investment trusts should be minimized in transaction and monitoring cost. 2. RESULTS In conclusion, For real estate investment trusts to settle down economically and efficiently, current related taxation system have to reform in various facts.