PROPERTY INCENTIVES Eyes On March Tax Expiration
Industry insiders in Bangkok are speculating that Thailand's Finance Ministry will push forward for approval of the current property incentives before the March expiration date. While it appears doubtful the tax deduction for purchasers which expired last year will be reinstated, the key issue continues to be the significantly lower transfer tax regime.
While the looming deadline is continued to fuel transactions, the industry at a whole is still looking for broader liberalization for longer leasehold terms and changes in the Thai/foreign quotas on condominiums. While foreign freehold condos and some projects seeing high domestic ownership are fueling the market, the leasehold or Thai entitlement units pose concerns for developers looking to fully sell out projects.