The tax promoting for the Thailand real estate sector has ended on 28. March 2010
Many of you whom are considering buying property here in Thailand
are probably not too sure of the tax regulations and what tax
you will have to pay after purchase or on selling a property.
Thailand’s government, while maintaining other measures introduced to assist poorer people, has decided to cancel the tax incentives given to the property sector when they run out on March 28, 2010.
The property tax breaks included a reduction in property rights transfer and mortgage registration fees, as well as in special business tax. The government now believes that, as those incentives helped property sales rise last year (2009) and the sector seems to have returned to normal profitability, such assistance is no longer required.
Therefore, the special business tax has returned to 3.3%, the transfer fee to 2% and the mortgage registration fee to 1%.
On the other hand, while its subsidies on water consumption will also be cancelled, the government has decided to maintain its other cost-of-living relief measures, such as free public transport for low-income individuals and free electricity for low-volume users, for another three months, and will review them further at the end of June 2010.
It was reported that the measures being renewed will cost the government around THB4.5bn (USD136.5m) in the present 2009/2010 fiscal year.
For your convenience we have provided a link to the most comprehensive
report, by BDO
Richfield Advisory Ltd., on Legal & Tax Property News
for your interest.