Tag Archive: proposed

  1. Reduction of Property Transfer Fees Proposed

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    According to media reports, the government’s economic teams, real estate groups and major developers are proposing a reduction of property transfer registration fees from 2% to 0.01%. Furthermore, mortgage fees are proposed to be decreased from 1% to 0.01% with the goal of supporting the real estate sector in Thailand.

    Apisak Tantivorawong, Finance Minister, purportedly said he is confident that the conclusion of measures to spur the property sector would come soon, and it would revive the real estate business. Industry consultants and experts have been urging incentives that would help home-buyers with more affordable rates, to lower their financial burden while giving them enough time to prepare for an ownership transfer. It is important to note that the measures have not been approved as yet, but if they are this certainly would be good news for buyers and property investors in Thailand.

    We will keep you informed about new developments in the matter in this news blog.

  2. Update on Proposed New Taxes

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    According to media reports, the Finance Minister Mr. Sommai Phasee stated that the new inheritance and gift tax is expected to be submitted for the cabinet’s approval on this November 2014 and should be enforced in the year 2015. Please see his following information below:

    1. The draft will stipulate a minimum rate of 10% to enable future rises without amendment of the law.
    2. The ministry will start imposing the tax a 10% when at least 50 million baht in assets is passed down.

    He also released the information that the Council of State will deliver the draft to him in this October 2014, and this draft will allow bequest beneficiaries to pay tax installments to ease their burden. However, he may ask the Council to review some issues such as loopholes likely to be used to avoid tax payments, such as preventing the use of nominees to receive inheritance.

    He said that the new land and buildings tax would be the next change after the inheritance and gift tax. The new land and buildings tax will take effect a year and a half after publication in the Royal Gazette. Because the Government would like to give the Treasury Department time to assess the value of 23 million land plots to serve as the tax base.

    The Treasury Department so far has appraised 7 million land plots on an individual basis. The Fiscal Policy Officer earlier proposed a ceiling rate of 4% for unused land and land for commercial use. For unused land, the rate will double every three years but not exceed a maximum level of 4% of appraised value according to a Finance Ministry source said earlier. Maximum rates will be set at 0.5% for agricultural use and 1% for residential use.

    When the new land and buildings tax is enforced, it will replace the existing house and land tax and local development tax. Low-priced residences and land will likely be exempt from the new tax.