Thai Law Firm BSA Law Urges Forward Planning for New Real Estate and Land Tax Regulations

Businesses are set to see an increase in tax liability as well as changes to payment systems for both real estate tax and land tax by 2011. Thailand lawyers, BSA Law, are advising that their customers obtain legal or accountancy advice in advance of the change. End Quote

(1888PressRelease) June 25, 2009 - Thai legal services are advising their clients to seek information on how several new taxes will affect their business in particular, before regulations start being rolled out in the near future.

One of the new taxes is a real estate tax. The new tax replaces current local and household taxes, and should increase government revenue by up to 10 billion baht. Thai business law sets the tax at 0.5 for commercial purposes, 0.1% for residences and 0.05% for agriculture operators. Liability will be determined by the appraisal price of the real estate. It has not yet been determined whether the value used will be site value or capital value.

"The new tax will have a minimal effect for some businesses, however those with smaller turnover are advised to plan in advance for the increase in liability", says Chaiyos Hemarajata, special adviser at BSA Law.

"Organizations should also plan for an upcoming increase in fuel excise, along with alcohol if it is a company expense", continued Mr Hemarajata.

The way several taxes are collected and redistributed will change. The real estate tax, land tax and inheritance tax will now be collected provincially, rather than centrally. They will then be used for local government projects, rather than central ones.

The planned change aims to correct the inequity between Thailand and high-income nations in the source of local government revenue. In high income nations 70-80% of local government funding comes from taxes, while in Thailand around 10% is sourced from taxes.

"Businesses do have time to plan, as these changes are not on the cards until 2011, while the government is focusing on economic stimulus", finished Mr Hemarajata.

About BSA Law:
For nearly 30 years, Bamrung Suvicha Apisakdi Law Associates (BSA Law) has focused on providing reliable legal advice and services to the Thai and foreign business community in Thailand. BSA Law seeks to provide international standards of legal services while retaining the customs of the Thai business culture.

For more information please contact:
Jim Byrne
Business Advisor, BSA Law.
Email: jim ( @ ) bsalaw dot co dot th

http://www.bsalaw.co.th

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