Property tax breaks offered for another year
The Cabinet has approved a package of tax relief to support people and businesses affected by the Covid-19 crisis.
The government has extended the 90-per-cent cut on land and building tax for another year, Finance Minister Arkhom Termpittayapaisith reported after Tuesday’s Cabinet meeting.
Payments of the 0.02 per cent tax on homes have been reduced by 90 per cent (first homes worth less than Bt50 million are exempted tax). Farmers pay no tax on their land, though the tax cut also applies to the 0.01 per cent rate on the value of agricultural land use. Vacant land, subject to a rate of 0.3 per cent, is also covered.
To support homebuyers and the property sector, the home transaction fee was cut from 2 per cent to 0.01 per cent and the mortgage registration fee from 1 per cent to 0.01 per cent. The cuts cover this year’s transactions on residential units worth up to Bt3 million.
The cuts will cost local governments about Bt40.6 billion in lost revenue, to be compensated by central government next fiscal year, said Arkhom. The tax relief would ease financial burdens during economic hardship, he added.
The government also extended the e-filing deadline for annual personal income tax from March 31 to June 30.
E-filing of withholding tax and value-added tax is also extended by 15 days, he added.
