Thai PM Faces Conflict Claims Over Real Estate Policy Change

[webfact]

 

Prime Minister Srettha Thavisin may come under fire for a proposed real estate policy change, amid concerns of a conflict of interest given his previous role as head of a leading property firm. 

 

Srettha’s Cabinet has preliminarily approved a proposal to increase the maximum foreign ownership of condominium units in Thailand from the current 49% to 75%, and extend land leases from 30 years to 99 years. This move aims to invigorate Thailand's sluggish real estate sector, which has been hit by oversupply and a decline in local purchasing power.

 

Prior to his political career, Srettha was the president and CEO of Sansiri Plc, one of Thailand’s top property developers. In an attempt to distance himself from his business ties, he transferred all his 661 million shares in Sansiri to his daughter.

 

Critics, however, are drawing parallels with former Prime Minister Thaksin Shinawatra’s case. Thaksin was alleged to have taken advantage of his office to benefit his telecom business through third-party shareholding, leading to his eventual conviction and a five-year prison sentence.

 

Prinya Thaewanarumitkul, a law lecturer at Thammasat University, expressed concerns, stating, “Transferring ownership of shares to his daughter is still the Thavisin family's interest, and Srettha could face criticism."

 

Some suggest that instead of drastically changing existing laws, Thailand should consider simplifying the criteria for granting citizenship to qualified foreign investors and skilled professionals, akin to policies in the United States and European countries.

 

This could help address Thailand's aging population and declining birth rates more effectively.

 

The debate over this policy might also end up in Parliament for scrutiny rather than being enacted as an emergency decree, given its potential unpopularity. Public support remains a key challenge; a similar proposal in 2022 by the previous government faced strong opposition and was ultimately withdrawn.

 

As the debate continues, the question of whether these policies will significantly impact foreign investment in Thailand's property market remains.

 

Picture courtesy: Facebook ไทยคำจีนคำ

 

-- 2024-06-29

 

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[redwood1]

This move aims to invigorate Thailand's sluggish real estate sector, which has been hit by oversupply and a decline in local purchasing power.

 

Funny how every article about this ignores the elephant in the living room that farang including the Chinese are not buying condos anymore because they want to avoid the income tax insanity and possibly a huge tax bill....Investors are voting with their feet...

[bobbin]

Citizenship for farang? Pull the other one..

 

I'd settle for a residency card after 22 years of year to year renewals..  🤥

[Mugi]

1 hour ago, redwood1 said:

This move aims to invigorate Thailand's sluggish real estate sector, which has been hit by oversupply and a decline in local purchasing power.

 

Funny how every article about this ignores the elephant in the living room that farang including the Chinese are not buying condos anymore because they want to avoid the income tax insanity and possibly a huge tax bill....Investors are voting with their feet...

They must pay 35% tax when they transfer money from abroad for buying a condo?

[RandolphGB]

Wonder how much Stretta paid to the Toxin clan to be their PM candidate. He certainly wasn't elected by voters. 

[topt]

2 minutes ago, Mugi said:

They must pay 35% tax when they transfer money from abroad for buying a condo?

Not that simplistic.First you currently have to be a tax resident - spend more than 179 days in Thailand in a calendar year.

Tax rates are tiered. It will depend on what those funds are - proven pre 2024 savings for example are not assessable.

[fondue zoo]

Does this guy understand what "thrown under the bus" means? 

The bus is coming soon.

 

[John Drake]

2 hours ago, webfact said:

Critics, however, are drawing parallels with former Prime Minister Thaksin Shinawatra’s case. Thaksin was alleged to have taken advantage of his office to benefit his telecom business through third-party shareholding, leading to his eventual conviction and a five-year prison sentence.

 

This is the nature of any Shinawatra government. Self interest above all other considerations.

[Ben Zioner]

1 hour ago, bobbin said:

Citizenship for farang? Pull the other one..

 

I'd settle for a residency card after 22 years of year to year renewals..  🤥

Neither, just keep LTR going as it is.

[jippytum]

Lawmakers with a vested interest in new legislation that benefits their own business shoud declare that interest a abstain from voting. 

[sabaijai]

He learned from his mentor Thaksin how to change the law for great personal profit, cf abolishing capital gains tax one week and selling ShinCorp the next. 

[Muhendis]

6 minutes ago, jippytum said:

Lawmakers with a vested interest in new legislation that benefits their own business shoud declare that interest a abstain from voting.

Happens all over the world.

Anyone from UK remember Dr. Beeching?

He was the roadbuilder politician tasked with remodeling the railways.

[chuang]

Damned if you do and damned if don't..

[Pouatchee]

2 hours ago, webfact said:

Some suggest that instead of drastically changing existing laws, Thailand should consider simplifying the criteria for granting citizenship to qualified foreign investors and skilled professionals, akin to policies in the United States and European countries.

 

countries like russia, south korea and as is our case... thailand only PUT UP with foreigners if they benefit the country on their terms. which, for argument's sake is understandable. but the conditions here in thailand to get a permanent residency card are quite demanding. as a teacher, who normally earns around 50k, in thai schools i am not sure that i would meet the minimum financial requirements. even after over 20 years here i am, as most of us here, on the outside looking in...

 

as for clown face, i guarantee that, just like taxsin did, anything he will attempt to pass will have a hidden agenda that will no doubt benefit him. maybe he will even go black panther hunting...

[Drumbuie]

38 minutes ago, John Drake said:

 

This is the nature of any Shinawatra government. Self interest above all other considerations.

The word "Shinawatra" is superfluous in that sentence these days, alas. Just look at the antics of the SelfServatives in the UK. 

[johnnybangkok]

2 hours ago, redwood1 said:

This move aims to invigorate Thailand's sluggish real estate sector, which has been hit by oversupply and a decline in local purchasing power.

 

Funny how every article about this ignores the elephant in the living room that farang including the Chinese are not buying condos anymore because they want to avoid the income tax insanity and possibly a huge tax bill....Investors are voting with their feet...

Agreed but I also think there is real concern about rising sea levels and the prediction that Bangkok will be under water by 2050. I see very little being done about this by successive governments who, as usual, are kicking the problem down the road for others to solve.
This is one of the main reasons I will not buy in Bangkok and why I rent instead.

 

Sea Level Rise Projection Map - Bangkok | Earth.Org

[NatureFilm]

"... proposal to increase the maximum foreign ownership of condominium units in Thailand from the current 49% to 75%, and extend land leases from 30 years to 99 years." 

 

Steps in the right direction, but unfortunately will not happen because the sick nationalism of asian countries. And if I read the comments here, then I understand , even the cheap farangs don't undestand.

[Cabradelmar]

Of course it's a conflict... the PM made his fortune on real estate development. His only ideas are geared to reinvigorate that market. Largely because it's the ONLY thing he understands (otherwise, he's the worst political leader THA has had in decades, maybe ever).  If he really wants to get hit with conflict charges, reshuffle the TRD (and sack that nutter who wants a worldwide tax scheme), and revert the tax laws that changed 1-Jan that are now holding the market back... why not, in for a penny, in for a pound.

[Cabradelmar]

1 minute ago, NatureFilm said:

sick nationalism

 

Is everywhere.

[hotchilli]

2 hours ago, bobbin said:

Citizenship for farang? Pull the other one..

 

I'd settle for a residency card after 22 years of year to year renewals..  🤥

Not in our lifetime... 16 years of this rubbish for me including 64 times saying I live at the same address.

 

[wensiensheng]

1 hour ago, Mugi said:

They must pay 35% tax when they transfer money from abroad for buying a condo?

Depends if it is accumulated overseas income from the 1st January this year. There is no tax on the transfer of capital into Thailand.
 

I doubt many people have that much income in just 6 months.

[crazykopite]

I would never buy a condo if I was denied any voting rights .

[mfd101]

1 hour ago, John Drake said:

This is the nature of any Shinawatra government. Self interest above all other considerations.

And your favoured military dictatorship was any different?

[Trip Hop]

1 hour ago, Muhendis said:

Happens all over the world.

Anyone from UK remember Dr. Beeching?

He was the roadbuilder politician tasked with remodeling the railways.

Since when was Beeching anything to do with road building?

[john donson]

1 hour ago, topt said:

Not that simplistic.First you currently have to be a tax resident - spend more than 179 days in Thailand in a calendar year.

Tax rates are tiered. It will depend on what those funds are - proven pre 2024 savings for example are not assessable.

 

savings in thailand since 2011, FCD account, converted to baht... 

 

I cannot buy anything...   bank with a big K  screwd me royally, pretend they cannot make an FET because I did this 10+ years ago and their computers, even head office, don't go more back in time, so no paper they can make for land department = no condo

 

not going to send it back and pay 25-35% on savings that maybe gave me 2% gross...

[topt]

12 minutes ago, john donson said:

not going to send it back and pay 25-35% on savings that maybe gave me 2% gross...

If in cash here and you send it back and immediately remit the same amount back here then easy to prove that it is not income and therefore non assessable........

If you are not planning to buy a condo then its moot anyhow.......

[John Drake]

59 minutes ago, mfd101 said:

And your favoured military dictatorship was any different?

 

Yes, I liked Prayuth's government better than this one. I wouldn't use the D-word for it, but I often wonder if other current politicians have precisely that in mine.  Now, why did I prefer Prayuth?

 

Electricity prices were cheaper

 

Inflation was low

 

Immigration was stable, with no major changes

 

There was no remittance tax

 

There was no proposal for a worldwide income tax

 

Prayuth did a better job in foreign policy, while being pro China he walked the line between China and the US better than does the Shin government

 

Didn't have government regulations about mobile phones that could cause you to lose your number

 

While Prayuth was PM I never had a flood cover my first floor for two months as it did under the Shinawatras

 

 

 

[thailand49]

I think prices are inflated and has left Thais out they cant meet the 51%. 🤔

[mfd101]

54 minutes ago, John Drake said:

 

Yes, I liked Prayuth's government better than this one. I wouldn't use the D-word for it, but I often wonder if other current politicians have precisely that in mine.  Now, why did I prefer Prayuth?

 

Electricity prices were cheaper

 

Inflation was low

 

Immigration was stable, with no major changes

 

There was no remittance tax

 

There was no proposal for a worldwide income tax

 

Prayuth did a better job in foreign policy, while being pro China he walked the line between China and the US better than does the Shin government

 

Didn't have government regulations about mobile phones that could cause you to lose your number

 

While Prayuth was PM I never had a flood cover my first floor for two months as it did under the Shinawatras

 

 

 

OK. That's not an unreasonable list.

[Srikcir]

5 hours ago, webfact said:

In an attempt to distance himself from his business ties, he transferred all his 661 million shares in Sansiri to his daughter.

All he had to do was sell off his shares, pay huge Capitol gains tax. Then no conflict with his proposal. 

Now I'm wondering if daughter is subjected to gift tax, the excess of THB 20 million with a tax rate of 5%. If she immediately (vs 2025) paid, would that clear him from any conflict of interest?