Tax break (temporary rate reduction)
Tax breaks become official today
Source: Bangkok Post March 29, 2008
Tax breaks for property buyers will become effective today with the official publication in the Royal Gazette, according to Suparut Kawatkul, the Finance Ministry's permanent secretary. Three laws would become effective, with the first reducing specific business taxes for property operators to 0.1% from 3% for transactions occurring over the next year.
The second law will increase waivers for individual taxpayers to the first 150,000 baht in income from 100,000 baht now, effective for the 2008 tax year. The increase will effectively reduce withholding taxes for individuals immediately.
The third law affects tax calculations for small companies with paid-up capital of less than five million baht, with the first 150,000 baht in income waived from corporate taxes. Profits after the first 150,000 will be charged under the normal ladder scale at rates from 15% to 30%.
The Interior Ministry has also announced that land transfer and registration fees will be cut to 0.01%, effective today.
The measures are part of a 40-billion-baht economic stimulus programme announced earlier this month by the government.
Temporary rate reduction
By Samuiforsale
In order to boost the real property sales business and the real property development business, the Thai government has granted temporary reduction on specific business tax rate from 3.3% to 0.11% on gross sales. Unless extended, this reduced rate applies only to transfers of real property taking place before 29 March 2009.
Moreover, the transfer fee rate is also reduced from 2% to 0.01% in case of transferring a house under land appropriation law, a condominium under condominium law, an office building under building control law or the transfer is under the debt restructuring plan provided that the registration at the Land Department is made within 24 March 2009.
The following information was published March 28, 2008 ( Revenue Department)
Please note that the following tax measures to stimulate the economy are now effective:
- Personal income tax exemption on the first 150,000 baht (from tax year 2008).
- Tax exemption on the first net profits of 150,000 baht for SMEs with paid up capital on the last date of the accounting period not exceeding 5 million baht.
- Specific Business Tax cut from 3% to 0.1% on commercial or profitable sale of immovable property.
- Fee reduction to 0.01% for the transfer (previously 2%) and mortgage (previously 1 %) of property and condominiums, residences and commercial buildings in accordance with 3 Notices of the Ministry of Interior dated 24 March B.E.2551.
Mr. Satit Rungkasiri, Deputy Director-General and spokesperson of the Revenue Department, said, “The Revenue Department is consulting with the Department of Land to ensure that transfer or mortgage of secondhand houses also qualify for the same fee reduction. Right now we are in the process of amending the law.”
You may read Royal Decree No 470 (personal income tax) No. 471 (SMEs) 472 (Specific Business Tax) B.E. 2551 and 3 Notices of the Ministry of Interior dated 24 March B.E.2551 at www.ratchakitcha.soc.go.th or www.rd.go.th
