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Condition Check! Build a house to deduct tax by 10,000 per 1,000,000; a new measure to stimulate the real estate business

Good news for the general public and the real estate section! On April 9, 2024, the Cabinet approved economic stimulus measures through the real estate sector and related businesses to create momentum for the overall real estate industry, elevating Thailand to a world-class industrial city center. 

This measure is a personal income tax deduction for those who want to build houses as specified in the Stamp Duty contract (O.S. 5) with a construction value of THB 1 million can be filed for tax deductions of THB 10,000, up to THB 100,000 from the effective date of the law, but not later than December 31, 2024.

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Conditions on Land and House Tax Deduction Measure

Terms & Conditions on Land and House Tax Deduction Measure are as follows

  1. Designate for Individual (Exclude ordinary partnerships or groups of people who are not individuals)
  2. Deduct the house construction wage to the contractor, who is a VAT-registered operator, from today until December 31, 2025.
  3. Tax deductions of 10,000 baht for every 1 million baht of construction cost, but not more than 100,000 baht (maximum 10 million baht of construction cost).
  4. The construction period runs from today to December 31, 2024, and the stamp duty is paid by paying the tax in cash via the Internet network.

Evidence for exercising rights includes:

  1. house construction contracts that are subject to pay stamp duty tax in cash via the Internet network.
  2. A full tax invoice was received from the construction payment under the contract to the contractor registered with VAT.

The benefit of this Land and House Tax Deduction Measure is to encourage consumers to make decisions easier and faster because some of them have delayed their decision on the economy because they do not trust the economy as much as they should, as well as to reduce the burden on consumers, said Mr. Olan Chanphu, President of HBA: Home Builder Association.

The mortgage and transfer fee will be reduced to 0.01 for houses/condos not exceeding 7 million baht

In addition, the residential fee will also be reduced in 2024. The fee on registration of real estate transfer is reduced by 2 % to 0.01t% and the mortgage registration fee from the same registration is reduced from 1 % to 0.01 % for real estate trading as follows:

  1. Residential buildings such as detached houses, twin houses or terraced houses, commercial buildings, or land along with such buildings.
  2. The registered condominiums with a trading price and appraisal value of assets of not more than 7 million baht and a mortgage of not more than 7 million baht per contract, excluding the trading of particular parts.

The benefits of Land and House Tax Deduction Measure

The Land and House Tax Deduction Measure aims to encourage people to have more housing, spending, and employment in the real estate sector, and stimulate the economy through real estate and related businesses. This measure is expected to help boost the economy by 1.7 – 1.8%.

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