Tax breaks for land developers in draft bill
The Finance Ministry may include exemptions for land held by developers for commercial purposes for no more than two years and residences worth no more than Bt1 million in the draft real estate tax bill.
Finance Minister Sommai Phasee said yesterday that the legal draft was being polished before it is proposed to the Cabinet late this month.
Some details still remain fluid.
His deputy, Wisudhi Srisuphan, said the ministry was reviewing the grace period for land holdings. Based on the land allotment approval procedure, the grace period may be set at one year, or in the case of condominium construction with environmental concerns, that could be set for two years.
“Setting the grace period for the property business will lessen the business burden, which could be passed onto consumers. However, the period should not be too long. If developers accumulate a land bank, that could be their cost,” he said.
If the grace period is not fixed for a land bank, it could be land that is not used appropriately and it would be taxed at no more than 4 per cent of its value.
Landowners could see a tax deduction of Bt1 million. If any property is valued at no more than Bt1 million, it will bear no tax.
However, three tax ceilings have been finalised for classes of real estate. Land for agricultural purposes will be taxed at no more than 0.5 per cent of its value, while residences will be taxed at no more than 1 per cent and idle land at no more than 4 per cent.
