The tax cuts aimed
at promoting the Thailand real estate sector
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.
This is in response to the recent reduction in transfer fees from
2% to 0.01% and Specific Business Tax (SBT) from 3.3% to 0.11%
for property purchased on a new development, so pre-sale taxes
are now negligible.
Hot off the press - more exciting information about Thailand's
continued tax cuts, according to an article in The Nation, (Thailand's
largest English Language Newspaper):
Second-hand home-buyers are also to benefit from a tax
waiver.
Anyone
planning to buy a resale home should wait for a tax waiver that
is expected to come into effect soon. The tax privilege for second-hand
houses is an extended version of the major tax stimulus package
announced on March 4 for the property sector, which focused on
purchases of new houses. The waiver for resale houses is mostly
similar to that for new homes.
The tax cuts aimed at promoting the real estate sector, in particular
for new houses, became effective 28th March. The specific business
tax rate has been cut from 3.3 % to 0.11 %. This tax rate applies
to both individual and private firms engaging in the property
business. Transaction and mortgage fees have also been cut - to
0.01 % from 2 % and 1 %, respectively.
A buyer pays either a transaction or mortgage fee, depending
on the terms of contract between the parties. In practice, some
buyers and sellers share half of the fee. Deputy Finance Minister
Pradit Pataraprasit said yesterday the government had agreed to
extend these tax incentives to cover the resale home market.
The Revenue Department is expected to issue details of the regulations
for resale houses in a few weeks. Meanwhile, the Interior Ministry
in charge of transaction and mortgage fees is drafting its own
regulations, he said." - The Nation, April 8, 2008
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. |
