{"id":16498,"date":"2016-06-14T18:35:50","date_gmt":"2016-06-14T11:35:50","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/thai-cabinet-approves-land-and-buildings-tax-what-now\/"},"modified":"2016-06-14T18:45:43","modified_gmt":"2016-06-14T11:45:43","slug":"thai-cabinet-approves-land-and-buildings-tax-what-now","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/thai-cabinet-approves-land-and-buildings-tax-what-now\/","title":{"rendered":"Thai cabinet approves land and buildings tax \u2013 what now?"},"content":{"rendered":"


\nExperts have expressed some concern about the new tax policy
\nImage credit: Acandco.com
\nThe land and buildings tax finally won approval from the Thai cabinet and it could generate as much as THB64 billion (USD1.82 billion), up from the current THB30 billion (USD851 million), for the government when it goes into effect in 2017. But some experts have noted that\u00a0the new taxes could put off property investors from purchasing units in Thailand.
\nThe tax-ceiling rate will be set at 0.5 percent for residences priced over THB50 million (USD1.42 million). Houses under this amount are not subject to the tax.
\nAny home valued above THB50 million\u00a0(USD1.42 million)\u00a0is subject to a progressive tax at 0.05 to 0.1 percent. Second homes will also be subject to 0.03 to 0.3 percent tax as well as any additional home after that.
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\nLandowners will also be required to pay more for undeveloped land and the new tax-ceiling rate will be no more than five percent. The rate will also be progressive and for every three years the land stays undeveloped, an extra one to three percent will be tacked on.
\nFor real estate companies, it is reported that land banks awaiting development will be taxed at 0.05 percent for three years once ownership of the land is transferred while non-performing assets of financial institutions will pay a tax rate of 0.05 percent for five years.
\nIssara Boonyoung, Thai Housing Association advisor, pointed out that 90 percent of homeowners will not be affected by the new land and building tax. The primary goal of the new legislation is to focus on wealthy individuals who own huge vacant land plots or blocks of residential units.
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\nAnd while there is some concern that property investors will be reluctant to buy additional units, RHB Thailand noted that with asset appreciation of five to seven percent per asset for prime area property, the extra tax of 0.03 percent to 0.3 percent is relatively small by comparison.
\nThere was also some worry that the new taxes could see banks take a hit on their earnings, however, experts are expecting only a minimal impact in 2017. They estimate that the additional expenses for the ten listed banks will likely be around THB40-50 million which would be less than 0.05 percent of RHB Thailand\u2019s 2017 earnings forecast for the sector.
\nThis article was first published on DDproperty.com on 14 June 2016.
\n
\nSource : property-report.com
\nRead more…Thai cabinet approves land and buildings tax \u2013 what now?<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Experts have expressed some concern about the new tax policy Image credit: Acandco.com The land...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-16498","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-4i6","jetpack-related-posts":[{"id":16504,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/saudi-cabinet-approves-land-tax-foreign-investment-rules\/","url_meta":{"origin":16498,"position":0},"title":"Saudi cabinet approves land tax, foreign investment rules","date":"June 14, 2016","format":false,"excerpt":"\r Saudi Arabia's cabinet approved a tax on undeveloped urban land and rules allowing foreign investors to own 100 per cent of retail and wholesale businesses, the official SPA news agency said on Monday.The 2.5 per cent annual tax on the value of undeveloped land designated for residential or commercial\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":16518,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/saudi-arabian-cabinet-approves-land-tax-foreign-investment-rules\/","url_meta":{"origin":16498,"position":1},"title":"Saudi Arabian cabinet approves land tax, foreign investment rules","date":"June 14, 2016","format":false,"excerpt":"\r The Saudi Arabian cabinet has approved the fine print of a controversial new tax on undeveloped land aimed at making it more expensive for owners of urban land to keep it empty.Under the new \"White Land\" tax that was approved on Tuesday, owners of empty plots of urban land\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":40922,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/5-reasons-thai-construction-is-hot-again\/","url_meta":{"origin":16498,"position":2},"title":"5 reasons Thai construction is hot again","date":"January 17, 2017","format":false,"excerpt":"\r Cementing the kingdom\u2019s status as a bustling construction market Bangkok Skytrain under construction. goldenjack\/Shutterstock Thailand is currently one of the most exciting hubs for contractors in Southeast Asia today, with a construction market value estimated at USD41.4 billion last year, according to a white paper released last week by\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":25353,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/properties-near-bangkok-infrastructure-projects-face-levy\/","url_meta":{"origin":16498,"position":3},"title":"Properties near Bangkok infrastructure projects face levy","date":"September 7, 2016","format":false,"excerpt":"\r Appreciating land values near key projects may mean much-needed income for the Thai government Bridge under construction over the Chao Phraya River in Bangkok, Thailand. travellight \/ Shutterstock Real estate developers will not be the only ones benefiting from the establishment of rapid transit lines across Bangkok in the\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":29771,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/why-this-singapore-developer-is-investing-in-thai-industrial-property\/","url_meta":{"origin":16498,"position":4},"title":"Why this Singapore developer is investing in Thai industrial property","date":"October 13, 2016","format":false,"excerpt":"\r One of the biggest real estate deals by a Singapore developer in 2016 Map Ta Phut industrial estate in Rayong, Thailand. tolotola\/Shutterstock One of Singapore\u2019s top real estate companies is acquiring a 40 percent stake in one of Thailand\u2019s biggest industrial property firms. 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