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Developers scramble to sell before property tax incentives expire

The government’s taxation incentives, which have delivered a significant shot in the arm for Thailand’s property market, are scheduled to end on March 28 and the race is on to sell as much residential property as possible in the time remaining.

Aishwarya Gupta

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The government’s taxation incentives, which have delivered a significant shot in the arm for Thailand’s property market, are scheduled to end on March 28 and the race is on to sell as much residential property as possible in the time remaining.

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Developers, banks scramble to sell before tax incentives expire

Nevertheless, Thailand performs well compared to other countries in the region on many aspects of government regulations and regulatory procedures that facilitate business. According to the latest annual World Bank’s Doing Business report, in 2008 Thailand ranks 13th among over 180 countries and 4th in East Asia in the ease of doing business. The ease of doing business is measured by quantitative indicators of regulatory requirements and procedures in ten areas in the life cycle of typical small and medium enterprises (SMEs) in the largest city in a country. They include, for example, the number days, steps, and cost needed to obtain business licenses, registering property, clear customs, pay taxes, and close a business. It only takes 2 steps and 2 days to register property in Thailand, one of the fastest in the world.

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Developers, banks scramble to sell before tax incentives expire

A clear policy framework is needed, and the development direction set forth by the policy makers should be based on reliable information on the current status of infrastructure development. Systematic, periodic, and internationally-standard information collection within the infrastructure sector will provide Thai policy makers with good background with which to assess the current situation, identify bottlenecks, set clear policy direction, and prioritize projects more effectively .

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