Big real estate is keeping an eye on the windfall tax. Please be clear – don’t keep duplicates.
After being silent for more than four years since it was approved by the Cabinet in 2018, the latest “Loyalty Tax” or the Tax Benefit Act from the development of the state’s transportation infrastructure. Come back to be the talk of the town again after “Krisada Jinavijana” Permanent Secretary of the Ministry of Finance The transmission signal will bring new dusting. to collect income for the state
“Krisada” explained that the Ministry of Finance has already drafted the original law for the fortune tax. and saw that it was a law that looked to the future When the city is developed according to the infrastructure projects that the government has invested in, including electric trains, double-track trains, high-speed trains, expressways, and motorways, it will cause land prices in the vicinity of government projects to increase, and part of the benefits should be shared. to the state As for the adoption of such laws must be considered at the appropriate time.
when looking at the details of the draft tax law Authorize the Department of Lands and Local Administrative Organizations (Local Administration) who have the project to collect by collecting from natural persons and juristic persons whose land is located within a radius of not more than 5 kilometers from the station up and down the mega-project of the government, whether High speed trains, double track trains, electric trains, seaports, airports, expressways, motorways
This is to collect only the land price that has risen as a result of the project. which imposes a tax ceiling of not more than 5% of the increased land value And the storage is divided into 2 periods, namely, during the construction period, will collect every time there is a purchase, change hands and collect after the project is completed. keep only once Only land or condominiums that are used for commercial use are worth more than 50 million baht. except residential land and agricultural land
Although the law does not yet have a clear timeline when it will be implemented. But there was a resonance from the real estate sector. Another business was fully affected as a “duplicate tax burden”.
Issara Boonyang, Chairman of the Board of Directors Kanda Property Co., Ltd. and as the chairman of the Real Estate Design and Construction Committee The Chamber of Commerce of Thailand said that the state will collect the fortune tax from the idea that when the state has invested in public utilities. Therefore, if the value of land tax increases should have to pay more tax or lose in the difference that has been added because the state wants more income
However, there is an opinion that I would like to propose to the government that, first, if really collecting a fortune tax The Ministry of Finance should review the various tax collection structures. related to real estate as well Because there are many taxes involved. And each tax is calculated on the basis of the Treasury Department’s appraised value that is already adjusted according to the infrastructure project, such as land and building taxes that must be paid annually. Transfer Fee specific business tax personal income tax Overall, it has to pay around 10%, which here asks the treasury to consider whether the levy tax should be reviewed on all land-related tax structures, whether it’s redundant or not.
Second issue, does the idea of having a land appraisal every 2 years still exist? And how much is needed? Because the construction of the transport structure takes many years. And the store will keep only trading, changing hands or keeping people who are still holding it, which the law must be clearly defined. because he who inherits will be pursued by prosperity by having to pay additional fortune tax
Third, when state utilities cut through, it has both value added and undervalued parts, for example, it used to pass local roads and motorways would cross. which part of the land value will not increase because the motorway cannot be connected But the appraisal price will increase. which has nothing to do with land also causing traffic congestion Because the state appraised value, when it goes up, it’s difficult to go down. and have to look at the appraisal price of the Treasury Department to see if there is any impairment or not And the collection will be archived from existing projects as well or only for new projects.
In line with “Athip Phichanon”, Vice Chairman of the Board of Trade of Thailand, said that at present, businesses and land and real estate holders are liable to pay many taxes. Both land and building taxes transfer fee specific business tax personal tax already If the state will collect a fortune tax Even if it is stored within a radius of 5 kilometers from the project line considered a redundant burden And it may not be the time to collect during the fragile economy. The Ministry of Finance must also look at the suitability.
“Looking at the basic principles and details, it is acceptable that the exemption is given to residential and agricultural land and land or condominiums with commercial use worth 50 million baht or more. because it does not affect the general public affects only big business people But the law must be written clearly so that it must not be interpreted as the same as the land and building tax that each locality interprets differently until it messes with each other. after the 4th, etc., or the rate of loss must not exceed 5%, even if the value is high, keep it like this,” said Adip.
On the side of “Peerapong Jaroon-ek”, the president of the Thai Condominium Association commented that he agreed with the principle of collecting the fortune tax. because he understands the situation of the government that wants to earn more from tax But the government must set the rate of collection clearly. Because each plot of land is not the same appraised value. If next to the train, the price will be high. while when entering the alley may be another price
“Each plot of land will not have the same fortune. Must be clearly defined according to the potential of the land because the radius of 5 kilometers is quite far. In addition, the price is different from the cheaper land near the expressway because most of the houses are housing and cars are mainly used. while the BTS location will be measured in walking distance, for example, next to the station, the price of land is 5 hundred thousand baht per square wa, when entering the alley, there will be 2.5 hundred thousand baht per square wa left.
In addition, “Peerapong” also has a proposal that If the state will collect a fortune tax Land and buildings tax should be exempted for taxpayers as well. Because redundant and floating tax is considered a tax on real estate. which must reduce this burden for the private sector as well Will it affect the house price or not? I have to look at the guts of the law because I haven’t seen the details.
You will have to keep an eye out for the “Loyalty Tax” that suddenly gets thrown a stone to ask for directions again. Will the government succeed in pushing forward amid fragile economic and political monsoons?
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