The Cabinet of Thailand has approved the extension of personal income tax payment for 2020, reduction of the real estate transfer fee to 1%, and reduce land and building tax rate down by 90%.
On January 26 2021 the Cabinet meeting attended by General Prayut Chanocha, Thailand Priminister, approved of 3 important tax measures.
The details are as follows:
1. Extend the period of submission of personal income tax returns and payments for the year-end 2020 with the Revenue Department for another 3 months, from 31 March 2021 to 30 June 2021.
2. Extension on the previous reduction of the land and building tax measurements to continue to reduce the tax rate of the year 2021 by 90%, this applies to all types of land and buildings regardless of their use.
3. Extended previous tax measures which reduced real estate transfer fees for houses that cost no higher than 3 million baht to help the real estate market of Thailand and reduce the expenses of anyone interested in purchasing any real estate. By reducing the registration fee for real estate and apartment transfer fee from 2% of the appraisal value to 0.01%, and also reduce the mortgage registration fee for real estate and apartments from the original of 1% of the mortgage value to 0.01% as well.
For example, in the case of buying a house of 3 million baht, instead of the usual 60,000 baht transfer and mortgage fee, it will only cost 300 baht.
The policy which reduced the registration fee for real estate and mortgage ended on the 24th of December 2020, the government expects the policy to take effect on the 1st of February 2021.
These new tax measurements will be of great help for anyone who wishes to purchase any kind of real estate (including condominiums) that cost 3 million baht or below.
By Phalat Rujiraarporn Updated: 28.01.2021