Myanmar reduces purchase tax levying on real estate
Monday, 27 August 2007
YANGON, Aug 26 (Xinhua): The Myanmar ministry of finance and revenue has reduced levying of tax on purchase of real estate including land, house, building and apartment, the local Kumudra news journal reported today.
Buyer, who fails to declare his source of income for the purchase of the real estate, will have to pay only 12 to 15 per cent tax over the amount transacted instead of a heavy 50 per cent plus 7 per cent of stamp tax previously prescribed, a recent order of the ministry of finance and revenue was quoted as saying.
Specifically, 15 per cent tax shall have to be paid for the purchase of a value of up to 5 billion Kyats (about 4 million US dollars) and 12 per cent for above the value, according to the order.
The fresh measure will be effective for a limited period of two years, the report said, adding that however, sale tax for such real estate remains unchanged with 10 per cent levied over the profit gained.
To assess the market estate value for taxation, a committee will be formed with personnel comprising not only those from the ministry but also from respective city development committee, the police force, general administration department and land record department, the report said.
Last year, Myanmar took some measures to tighten levying of taxes to raise state revenue designating that foreigners working in the country are to pay 15 per cent income tax in foreign exchange if earned in foreign currencies with effect from the year 's April. The then order of the finance ministry stated that local nationals are also required to pay such income tax but 10 per cent in foreign exchange if so earned.
Buyer, who fails to declare his source of income for the purchase of the real estate, will have to pay only 12 to 15 per cent tax over the amount transacted instead of a heavy 50 per cent plus 7 per cent of stamp tax previously prescribed, a recent order of the ministry of finance and revenue was quoted as saying.
Specifically, 15 per cent tax shall have to be paid for the purchase of a value of up to 5 billion Kyats (about 4 million US dollars) and 12 per cent for above the value, according to the order.
The fresh measure will be effective for a limited period of two years, the report said, adding that however, sale tax for such real estate remains unchanged with 10 per cent levied over the profit gained.
To assess the market estate value for taxation, a committee will be formed with personnel comprising not only those from the ministry but also from respective city development committee, the police force, general administration department and land record department, the report said.
Last year, Myanmar took some measures to tighten levying of taxes to raise state revenue designating that foreigners working in the country are to pay 15 per cent income tax in foreign exchange if earned in foreign currencies with effect from the year 's April. The then order of the finance ministry stated that local nationals are also required to pay such income tax but 10 per cent in foreign exchange if so earned.