Thailand Tax: Government extends some tax incentives

Thailand's government has approved extending the reduction of the transfer fee (and fee for the registration of mortgaged land) on immovable property from 31 March 2010 to 31 May 2010 to allow buyers more time to obtain loans. The fee was previously reduced (from 2% to 0.01%) along with the Specific Business Tax (from 3.3% to 0.11%) as part of a measure to promote the Thai economy, but the Specific Business Tax reduction has not been extended. An official announcement on the extension, however, must still be made.

Special Economic Zone tax measures also have been extended to the end of 2012 by Royal Decree No. 492 for the provinces of Narathiwat, Pattani, Yala and some areas in Songkla and Satul. The extended measures continue to reduce: the corporate and personal income tax to 3% and 0.1%, respectively, on the sale of goods and the provision of services to businesses located in the areas; and the withholding tax on the sale of immovable property in the areas by an individual to 0.1%, and excluding gains on the sale from personal income tax.