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BOI Offers Tax Privileges for Developing Housing for Low-Income Thais
01/05/2024
In an effort to provide affordable housing options for Thais earning a low income, the Board of Investment (BOI) has announced a set of tax privileges for property developers. These privileges aim to encourage developers to focus on the construction of houses and condominiums priced at THB1.5 million and below. The BOI approved these measures on March 15 2024, alongside the Government Housing Bank’s project to offer loans to low-income individuals for home purchases.
Key points
- Developers who build townhouses, single-detached houses, and condominiums priced at THB 1.5 million or below may be eligible for tax incentives from the BOI.
- Eligible projects will receive corporate tax exemption for 3 years, covering up to 100% of investment costs excluding land and working capital.
- Developers must obtain endorsement from the Government Housing Bank and apply to the BOI before the end of 2025.
- The tax privileges aim to encourage developers to construct affordable housing options for low-income Thais.
Who will be Eligible for these Tax Privileges?
To be eligible for the tax privileges on offer from the BOI, developers must have a plan to build townhouses, single-detached houses, and condominiums valued at 1.5 million THB or below..
Each detached property or townhouse unit must have a minimum floor area of 70 square meters, while condo units must have at least 24 square meters of floor space.
Additionally, property developers must obtain endorsement from the Government Housing Bank (GHB) to be eligible for the tax privileges.
Property developers who are interested in applying for this promotion must apply to the BOI’s before the end of the next year (2025).
What Benefits are Available?
Eligible projects will be exempted from corporate tax for a period of three years. This exemption covers up to 100% the investment cost (excluding working capital and purchasing the land). Areas eligible for the exemption include investment in roads, public facilities and public usage areas included in the development.
By granting these tax privileges, the BOI aims to encourage property developers to focus on constructing affordable housing options for low-income individuals.
How will these Benefits Affect the Thai Economy?
The BOI’s tax privileges for developing housing for low-income Thais, along with the Thai government’s measures to extend the price range eligible for reduced transfer and mortgage fees, are aimed at addressing the need for affordable housing options. These measures not only benefit buyers and developers but also have wider economic implications, stimulating various sectors and promoting growth.
With the government’s commitment to providing affordable housing solutions, the real estate market in Thailand is poised for positive development, creating opportunities for both low-income individuals and property developers alike.
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