Temporary rate reduction (renewal of the tax reduction update)

Samuiforsale April 8 2009:

In order to boost the real property sales business and the real property development business the Thai government has extended the tax breaks for property buyers for another year till March 28 2010. The temporary reduction on the transfer fee rate from 2% to 0.01% has been anounced and is currently applied at the local land offices in Thailand (the previous tax reduction expired on March 2009).

The renewal of the temporary reduction of specific business tax from 3.3% to 0.11% on gross sales which also exipred on March 29 2009 has not yet been announced therefore must be paid (most property transactions are put on hold awaiting announcement). The amendment of the law has been approved, but not yet announced. It is a matter of time before the renewed period for the reduction of Specific Business Tax from 3% to 0.1% on commercial or profitable sale of immovable property will be announced and published in the Government Gazette.

Note: the reduction of Specific Business Tax applies to all real estate transactions. The reduction of transfer fees only applies on specific real estate property transactions, generally, commericial properties, official property developments, house and land up to a certain size, condominium units, and does for example not apply on private land sales.

Currently Specific Business Tax has and transfer fees for specific properties are reduced till March 28 2010.

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