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Builders and buyers of real estate in Thailand awaiting the extension of tax benefits

21-02-2010

  Builders believe that the government will extend tax incentives for real estate industry and an expiry date which was appointed at the end of March.

  Ministry of Finance, is likely to seek extension of the Cabinet of tax incentives in real estate, believes Atip Bizhanond (Atip Bijanonda), president of the Thai Condominium Association.

  In his view, the extension of tax incentives would improve the economy as a whole, although the government may extend only incentives that apply to buyers of residential property, such as favorable mortgage terms and lower interest charged for remittances, said publication of Bangkok Post.

  Employers Siteemorn (Kiat Sittheeamorn), president of the Commercial Counselor of Thailand, said the government should consider extending tax breaks for the real estate industry because the sector as well as other sectors, creates a multiplier effect.

  The turnover of the property market in Thailand is about 900 billion baht (about $ 27 billion) a year - about 10% of GDP - this creates 3.4 million jobs a year, including all related real estate industry, said Mr. Siteemorn.

  The extension of tax incentives has been discussed for quite a long time. Of course, developers and buyers of real estate in Thailand in favor of extending tax breaks, although the Government believes that this measure will mean a loss of income.

  It is now known that the measure providing a tax deduction in the amount of 300,000 baht from the taxable income of local property buyers, which expired last year, will not be renewed.

  Mr. Employers said that the government should also encourage the inflow of foreign investment in the construction of real estate in Thailand.

  At present, foreign investment in the construction industry in Thailand is around 20 billion baht (about $ 602.5 million) - is a much lower proportion than in other industries, partly due to funding problems.

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