New tax looms for some realty

By THE NATION

 

 

A NEW TAX must be levied to reflect the increased value of land and buildings alongside major transportation infrastructure development projects, said the Fiscal Policy Office (FPO) in order to recoup some of the high costs of government investment in the projects. 

 

Following a recent public hearing on a draft bill for tax on benefits derived from development of the government’s transportation infrastructure projects, the FPO said that land and condominium owners have not made any direct investment for infrastructure, and yet have indirectly gained from the higher asset prices that followed from the projects.

 

Land and condominiums worth more than Bt50 million will be taxed to reflect those indirect gains.

 

The FPO will forward to the National Legislative Assembly the opinions gathered from 44 days of public hearing about the draft bill. 

 

Feedback 

 

Public feedback varied from discussion about tax collection principles to suggestions for a 10-20 per cent range on local development taxes. 

 

In one response the Ministry of Finance (MOF) proposed special taxes be collected when a plot of land close to a transportation infrastructure project was sold. MOF said that a landowner would sell the land for a higher price and could pay the tax without any impact.

 

The FPO said the tax revenues would be applied to the country’s treasury balance. When the Ministry of Transport or other agencies were making future project plans, they would submit budget requests following normal legal processes.

 

The proposed draft bill waives the tax on land used for residential purposes and not sold during implementation of the project.

 

The FPO proposed that the Revenue Department would be responsible for tax collection. 

 

Tax would be related to increases in the value of land or buildings resulting from infrastructure development. 

 

Values, and taxes, could be assessed repeatedly if more than one transaction is made.

 

Only appraised asset prices would be used for tax calculations as sales prices are difficult to prove, the office said.

 

Source: http://www.nationmultimedia.com/detail/Economy/30331605

 

-- © Copyright The Nation 2017-11-14

Capital gains tax should apply when land is resold at profit....anywhere!

Can't see how a special tax for property near the BTS is going to work.....bureaucrats justifying their existence!

I guess since you pay tax on an assessed price that doesn't reflect the actual price; hence the "special tax".

I think it may be simpler to just pay tax on the actual price paid rather than an outdated assess price? (although many people will say the transaction was B1 to avoid the tax!)

Bts tax on property worth over 50 million?

 

I guess I'm ok 

Got to pay for those submarines some how :)

No tax assessor offices in Thailand, whose job it is to keep assessments up-to-date so that property taxes paid are based on current assessed values rather than purchase price? 

 

10 hours ago, coulson said:

Bts tax on property worth over 50 million?

 

I guess I'm ok 

Yeah its only 100,000 per year per condo if you have 100 in the complex. Of course if there are less condo's or the value is more than 50m baht the adjust your payment accordingly.

I think my maths are right. 50,000,000 divided by 100 is 500,000 times 20% is 100,000....yep I think thats right.

 

Lets call it a rounded 2,000 baht a week or a bit over 8,000 a month. Of course if you rent I expect the landlord will add this to you current rental.

 

I guess you are OK.

 

A lot of other people might not be.

 

Edited November 15, 20178 yr by tryasimight

6 hours ago, hawker9000 said:

No tax assessor offices in Thailand, whose job it is to keep assessments up-to-date so that property taxes paid are based on current assessed values rather than purchase price? 

 

My neighbours many years ago got screwed big time by the current assessed value trick. They retired and bought a block of land well out of the city and built a house near the beach. As the city grew and expanded they were forced to sell their home (or face court ordered sale and eviction brought on by the local government/council) of 30 years just to pay the increasingly current assessed land tax/council rates (use the term you are familiar with). They were in their 80's by then and lived solely on their pension - their savings having been expended over the course of their retirement. Where's the justice in that?

For sure the property was worth a lot of money on paper but why not just levy the tax upon sale discounted for inflation and leave people to enjoy the lifestyle they worked and paid for all their lives?

The BTS infrastructure  has already been bought and paid for, where is the need to double dip taxation for it. Make the users pay if needed by increasing the ticket price.....oops that would not be a good political move....let's just stick it to the 'rich'.

Just because someone has something valuable is not a reason to tax them for future gains which is in effect what this tax is proposing.

 

Edited November 15, 20178 yr by tryasimight