Tax Incentives For Property Extended

[ChiangMaiFun]

The government's tax incentives for the property market, which are part of the government's stimulus package, will originally come to an end on March 28. They will now end on May 31

Maybe I'm the only one - and on face value this appears to be good - but it doesn't inspire me to believe anything they ever say... I rushed around and spent 20,000 on a lawyer to draft up a special contract because of the deadline - now they think 'hey-ho let's extend it' - and for what? some 'friends' couldn't exchange on time maybe? TIT

[Barack]

Sorry about your particular situation but I know several people who will benefit from this good news.

http://www.nationmultimedia.com/home/2010/03/23/business/Tax-incentives-for-housing-extended-30125368.html

http://www.bangkokpost.com/breakingnews/172464/property-stimulus-measures-extended

[webfact]

Property tax incentives extended

By The Nation

BANGKOK: -- The Cabinet today approved the extension of the property tax incentives for another two months, said Prime Minister Abhisit Vejjajiva.

The government's tax incentives for the property market, which are part of the government's stimulus package, will originally come to an end on March 28. They will now end on May 31.

He said that the extension would allow over 10,000 homebuyers may not be able to complete the transfers within the original deadline.

Earlier, the Cabinet denied the extension, citing that property companies have enjoyed hugely from the incentives.

It is estimated that for the house price of every Bt1 million, buyers' cost will rise by Bt20,000 when the incentives are over. The transfer and mortgage registration fee is now 0.01 per cent and will return to 2 per cent in June. The special business tax will also rise from 0.11 per cent to 3 per cent.

-- The Nation 2010-03-23

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[LennyW]

Seems rather odd that it has been extended for 2 months only, and not a calender year as is the usual practise ??

[ChiangMaiFun]

Sorry about your particular situation but I know several people who will benefit from this good news.

http://www.nationmultimedia.com/home/2010/03/23/business/Tax-incentives-for-housing-extended-30125368.html

http://www.bangkokpost.com/breakingnews/172464/property-stimulus-measures-extended

Hi - yea I know overall its good news... I just get frustrated that they are so indecisive - I should never believe them really... but then that's risky too!

[dave111223]

A real life saver for me. Our loan for a certain property has been delayed and wasn't going to be able to go through until next week. Which was going to cost me about 100,000THB more in fees/taxes.

Thank god for this extension, 100K saved.

I had to go to the land department today for a different deal, and it was a real mad house, hopefully this extension will cut down on the massive queues.

[Raptor7]

does the extension not apply to the special business tax (SBT)??? this article seems to say that the SBT pops back up to 3% after Sunday?? if that's the case, a huge letdown then...

Bangkok Post article

[Barack]

does the extension not apply to the special business tax (SBT)??? this article seems to say that the SBT pops back up to 3% after Sunday?? if that's the case, a huge letdown then...

Bangkok Post article

Not clear at all. If I sell a condo do I pay the SBT tax? "....But property developers will still see business tax return to 3% from 0.1% after Sunday." I am obviously not a property developer.

[oracle]

does the extension not apply to the special business tax (SBT)??? this article seems to say that the SBT pops back up to 3% after Sunday?? if that's the case, a huge letdown then...

Bangkok Post article

Not clear at all. If I sell a condo do I pay the SBT tax? "....But property developers will still see business tax return to 3% from 0.1% after Sunday." I am obviously not a property developer.

If you owned the condo less than 5 years you pay when selling the full SBT after Sunday. Only the transfer fee rate reduction is extended.

[tartempion]

Well it seems the thieves at the land registration are still making money.

Amphur Nong Han, GF bought one rai this week, estimated value 150.000 baht, transfer fee .01% and business tax .11%, stamp duty .5%, thus 930THB???

She was told tax to be 8000, buit after "negociating" got it down to 3500, seller paid 1000.

Edit: She was NOT given a receipt, and I think stamp duty was not due, so correct tax would have been .12% or 180THB!

Edited March 28, 2010 by tartempion

[oracle]

Well it seems the thieves at the land registration are still making money.

Amphur Nong Han, GF bought one rai this week, estimated value 150.000 baht, transfer fee .01% and business tax .11%, stamp duty .5%, thus 930THB???

She was told tax to be 8000, buit after "negociating" got it down to 3500, seller paid 1000.

Edit: She was NOT given a receipt, and I think stamp duty was not due, so correct tax would have been .12% or 180THB!

If you buy 1 rai of raw land the transfer fee is 2%, not 0.01 % and it has never been for all transactions 0.01%, only for specified properties. If you sold a condo always transfer fee of 0,01% up till last Friday, for land only during the reduced rate period mostly 2%.

Edit: Transfer fee reduction has been extended till May 31 2010, but again not all transaction.

Edited March 28, 2010 by oracle