Tax Deductions For Up To Bt500.000: First Time Home Buyers

[webfact]

FIRST-TIME HOME-BUYERS

Tax deductions for up to half a million baht

By WICHIT CHAITRONG

THE NATION

First-time home buyers are to get a tax deduction of up to Bt500,000.

Tax incentives for first-time home buyers will be submitted for the Cabinet's approval today, Finance Minister Thirachai Phuvanatnaranubala said yesterday.

He said the tax package would be expanded to cover homes priced up to Bt5 million, instead of Bt3 million as previously planned, because the government wanted to provide tax incentives for those seeking homes located in central urban areas.

Revenue Department chief Satit Rungkasiri said the department was revising the tax incentives, as the earlier plan was to provide deductions for those who bought homes priced at not more than Bt3 million.

"Under the new proposal, home-buyers could get tax deductions of up to 10 per cent of home prices," he said.

In the case of a home costing Bt5 million, buyers could get up to Bt500,000 deducted from their annual income tax payments. The deduction will be applied over five years, at a rate of 20 per cent each year.

"The tax incentive will cover only those people who buy a home within one year, starting from the date of the Cabinet's approval," Satit said.

First-time home-buyers will then begin to get their tax deductions in 2013.

The scheme is expected to cost the government about Bt2 billion in lost revenue, he said. The scheme covers both new homes and those being resold.

The first-time home-buyers will also get a tax deduction of Bt100,000 annually for interest-rate payments on mortgages.

The incentives for first-time home-buyers were one of the Pheu Thai Party's promises during the recent election campaign. Last week, the Cabinet approved excise-tax rebates for first-time car buyers.

Deputy Finance Minister Viroon Tejapaibul said he was also talking with the Government Housing Bank (GHB) about interest-free conditions for mortgages for home-buyers. The price of homes qualifying for these mortgages will be capped at Bt3 million, and both new and resale homes will be eligible, he said.

Buyers could enjoy interest-free conditions for up to the first five years of mortgage repayments if they buy resale homes from the GHB's list of non-performing assets.

Total mortgages under the scheme will amount to about Bt10 billion.

Viroon said the interest-free mortgage package would be announced later and could be implemented without the Cabinet's approval.

Under the zero-per-cent interest-rate mortgage scheme for first-home buyers implemented by the Abhisit Vejjajiva government, 18,500 borrowers have applied for loans amounting to Bt25 billion. The GHB has already approved loans worth about Bt15 billion, and the rest are in the process of approval.

Home-buyers can still apply for these loans, as the bank has another Bt1.8 billion on offer, according to GHB staff.

In a related development, Viroon said the Finance Ministry would today submit for the Cabinet's approval the promised income hike for civil servants who are graduates. They will get a monthly minimum income of Bt15,000.

-- The Nation 2011-09-20

[siampolee]

Good to see that the average wage earner in Thailand is able to afford a modest house in the city area for around a million baht and that's a cheap deal too.

So good to see how the funds are being splashed around so as civil (?) servants who are graduates are to receive a monthly salary as promised of 15,000 baht too.

Oh, hang on I seem to recall that it was all graduates were to receive a minimum 15.000 baht salary in the P.T.P. ( Personal Thaksin Property ) pre election sales pitch irrespective of employer.

Sorry boys and girls we can't do that our supporters who employ graduates wouldn't agree to that policy as it affected their profits.

One is led to wonder how the Red Shirt brigade feel about this matter, will they take to the streets to support the conned electorate, or is the financial drip feed to the privileged Red Shirt leadership still in place?

Don't see much of an improvement for the majority of the Thai work force now or even in the future.

.

[whybother]

So, what were the PTP policies there were supposed to help the poor?

[apalink_thailand]

There is only one problem with this scheme. How many, of the poor, actual pay taxes? Where then, is the incentive. Or am I missing something here?

[siampolee]

I think when the first statistics are posted there will be an enormous number of " maids, drivers, gardeners and nannies etc. buying their first houses."

Edited September 20, 2011 by siampolee

[DP25]

Final the poor have got what they have been clamoring for - tax deductions on 5 million baht homes. At 300 Baht per day that only takes them 46 years to make. Tax cuts for big coorporations. Reduced sentences for millionaire tax evaders. Pardons for billionaires and their loot returned. Will this mana from heaven for the downtrodden ever cease?

[webfact]

Cabinet approves 10% tax refund for first-time home buyers for homes priced at no more than Bt5 mln from Sept 22-end 2012 /TAN_Network

[kartman]

I think when the first statistics are posted there will be an enormous number of " maids, drivers, gardeners and nannies etc. buying their first houses."

+ a car/pickup to get to/from work :whistling:

[jimbeam1]

I think when the first statistics are posted there will be an enormous number of " maids, drivers, gardeners and nannies etc. buying their first houses."

Does that also apply for farang?

jb1

[cowslip]

When did a similar incentive scheme in Oz it just sent house prices up

[Basil B]

There is only one problem with this scheme. How many, of the poor, actual pay taxes? Where then, is the incentive. Or am I missing something here?

How many of the poor can afford to buy there own house?

What percentage of Thai's can afford to buy a house?

[Arkady]

So, what were the PTP policies there were supposed to help the poor?

Most of the policies that are being implemented are designed to help businessmen, including this one and the car tax rebate. Worst of all is the rice pledging scheme that benefits the Thai-Chinese middlemen in the rice trade who are PTP politicians and canvassers. Only a small percentage of farmers with large holdings can benefit, while the urban poor will suffer from higher food prices and Thailand public finances will get a big black hole. Meanwhile, Thailand system of inefficient small holdings cultivated by an agrarian workforce with an average age of around 55, that grow only rice, even in areas that are unsuited to the crop like Isaan, becomes more and more uncompetitive against Vietnam and other countries.

[rotary]

That what I was thinking......most of these people do not pay enough taxes to benefit from this scheme.

There is only one problem with this scheme. How many, of the poor, actual pay taxes? Where then, is the incentive. Or am I missing something here?

[apalink_thailand]

That what I was thinking......most of these people do not pay enough taxes to benefit from this scheme.

There is only one problem with this scheme. How many, of the poor, actual pay taxes? Where then, is the incentive. Or am I missing something here?

Nor would they even qualify for a loan.

[serenitynow]

That what I was thinking......most of these people do not pay enough taxes to benefit from this scheme.

There is only one problem with this scheme. How many, of the poor, actual pay taxes? Where then, is the incentive. Or am I missing something here?

Nor would they even qualify for a loan.

You're not seeing the big picture. Sure the poor don't directly benefit from this tax credit but think of all the jobs carrying bricks and being domestic help this policy will provide. Trickle down baby!

[brianb1944]

There is only one problem with this scheme. How many, of the poor, actual pay taxes? Where then, is the incentive. Or am I missing something here?

My thoughts exactly, it merely means that the "haves" will keep more of it, and the "have nots" will continue to wait for the economic miracle promised by PTP for all the people.

[apalink_thailand]

That what I was thinking......most of these people do not pay enough taxes to benefit from this scheme.

There is only one problem with this scheme. How many, of the poor, actual pay taxes? Where then, is the incentive. Or am I missing something here?

If your monthly salary is under 12,500, you are exempt from taxes. The 2010 annual per capita income is stated at USD 4,716 (11,790 Baht per month @ 30 bht/$) according to a US State Dept website. Seems to me that not many will benefit.

[bangkapi]

They get these crazy schemes from the overextended West that is about to collapse.

Even the other day some politician was talking about boosting consumer spending/consumption.

What ever happened to the sufficiency economy (เศรษฐ กิจพอเพียง) that was backed by you know who?

[crazydrummerpauly]

There is only one problem with this scheme. How many, of the poor, actual pay taxes? Where then, is the incentive. Or am I missing something here?

My exact thought too - especially at the high rate quoted.

[crazydrummerpauly]

That what I was thinking......most of these people do not pay enough taxes to benefit from this scheme.

There is only one problem with this scheme. How many, of the poor, actual pay taxes? Where then, is the incentive. Or am I missing something here?

Nor would they even qualify for a loan.

You're not seeing the big picture. Sure the poor don't directly benefit from this tax credit but think of all the jobs carrying bricks and being domestic help this policy will provide. Trickle down baby!

[/quote

'Trickle Down' was the ideology spouted by the Thatcher UK government in the 1980s...the gap between rich and poor is now wider than at any time in the post 1950s period.

Trickle-Down is a myth as far as reducing inequality is concerned.

[tigermonkey]

There is only one problem with this scheme. How many, of the poor, actual pay taxes? Where then, is the incentive. Or am I missing something here?

Nor would they even qualify for a loan.

You're not seeing the big picture. Sure the poor don't directly benefit from this tax credit but think of all the jobs carrying bricks and being domestic help this policy will provide. Trickle down baby!

'Trickle Down' was the ideology spouted by the Thatcher UK government in the 1980s...the gap between rich and poor is now wider than at any time in the post 1950s period.

Trickle-Down is a myth as far as reducing inequality is concerned.

Trickle down ecomomics has been around as a political theory since the late 1800's. Strangely it has NEVER been a theory that has been proposed or accepted by any economists -- only politicians. For more than a hundred years right wing politicians have been saying " put more money in the hands of the investors and it will trickle down to the poor". while left leaning politicos spout " put more money in the hands of the masses, and it will trickle up to the rich in profits".

Nobody, anywhere has ever claimed that trickle-down will reduce economic inequality -- I' m glad to see that you have put an end to this myth, which you have apparently also created.

Edited September 20, 2011 by tigermonkey

[notime]

Another half-cooked and quite idiotic policy totally missing the target. Unless of course they (the policy-makers) are only mean to appear to be helping the poor and the first home buyers but really are to save the taxes of the middle class providing some of them can find a relative who is not a house owner yet. If they were to really increase the home ownership rate among the financially underprivileged why not offer straightforward refunds off the house price or at least zero government land taxes on purchases of first homes?

[Ricardo]

So, what were the PTP policies there were supposed to help the poor?

Clearly this must be one of those policies, designed to help the poor, as they will be the ones working to build these 5-million-Baht city-centre luxury-homes ! Hope they get their 300B/day while doing so !

[chooka]

I am not sure how this is going to work in Thailand but if it is anything like Australia they give in one hand and take back with a little more in the other. The cost of building a home went up, GST on materiels and labour etc. Stamp duty increased and rates went up. The whole idea was to encourage people to build new homes thus creating employment.

[featography]

I think when the first statistics are posted there will be an enormous number of " maids, drivers, gardeners and nannies etc. buying their first houses."

Does that also apply for farang?

jb1

:cheesy::cheesy::cheesy::cheesy::cheesy::cheesy:

[arthurwait]

So, what were the PTP policies there were supposed to help the poor?

Clearly this must be one of those policies, designed to help the poor, as they will be the ones working to build these 5-million-Baht city-centre luxury-homes ! Hope they get their 300B/day while doing so !

I imagine that these houses/condos in mind are already built and need to be shifted some how. I wonder how many of the cabinet and their friends and families or the party donaters have housing projects that need selling.

[AleG]

I imagine that these houses/condos in mind are already built and need to be shifted some how. I wonder how many of the cabinet and their friends and families or the party donaters have housing projects that need selling.

SC Assets anyone?

[Buchholz]

Interesting development on the home buyer scheme with the increase in the limit for mortgagees to 5 million baht from 2 million earlier.

SC Asset (the Shinawatra company that Yingluck just left and now run by Thaksin's daughter) has 1,700 houses that are now eligible for the scheme.

The potential increase to their real estate business comes to 5.1 Billion Baht.

.

Edited September 23, 2011 by Buchholz

[Buchholz]

In order to placate the poor who have realized this "populist" program is but for the rich...

comes a new scheme..

[Buchholz]

Govt Plans Interest-free Home Loan

The government plans to issue cheap loans to first-time home buyers at zero-percent interest to provide an opportunity to low-income earners.

The new scheme is being introduced amid heavy criticism against the first-home tax refund that it only helps people with higher incomes.

Deputy Finance Minister Wirun Techapaiboon said after a discussion with the Government Housing Bank about the first-time home owner campaign that they have reached an agreement to launch a new loan scheme which will offer zero-interest loans to first-time home buyers.

The interest-free period will last two to three years.

Wirun noted that interest-free mortgages will be offered to first-time buyers of houses costing about one to two million baht. The scheme will be proposed to the Cabinet next Tuesday if details can be concluded this week. The deputy finance minister stressed that the scheme is designed to help low-income earners and support the government's first-home tax incentive scheme.

The scheme is designed to help first-time buyers of houses costing less than 1.5 million baht, which enables them to be eligible for a tax rebate of up to ten percent.

-- Tan Network 2011-09-23