Relaxed taxation measure on real estate deal to extend in Myanmar

Myanmar's two-year measure of reducing levying of tax in terms of value on real estate deal, which was introduced in August 2008, will be extended for another one year, a local weekly quoted the Ministry of Fiance and Revenue as reporting Thursday.

The deadline for the tax relaxation grant was set for Aug. 12 this year.

The continued implementation of the measure encouraged real estate dealers to go on with their business on the present reduced tax rate, said the Biweekly Eleven.

According to the 2008 prescription by the Ministry of Finance and Revenue, buyer, who fails to declare his source of income for the purchase of the real estate, were set to pay only 12 to 15 percent tax over the ministry-assessed market value of the estate instead of a heavy 50 percent plus 7 percent of stamp tax previously designated.

Specifically, 15 percent tax were designated to be paid for the purchase of a value of up to 5 billion Kyats (about 4 million U.S. dollars) and 12 percent for above the value.

However, sale tax for such real estate remained unchanged with 10 percent levied over the profit gained.

Myanmar's real estate business revived in late 2007 regaining high prices since then and the prices of landplots, houses, buildings and apartments lying in the commercial center of six Yangon downtown areas especially on the main roads have risen six times now compared with five years ago.

The Yangon municipal authorities again in December last year introduced a fresh rule for building contractors to observe, saying that the residence permit is issued only when the related tax on the completed building is settled.

The rule designates that unless legal income for the building is proved, 15 percent of tax are to be paid before the building is approved for residence.

Building value assessment for taxation under market price is conducted by the Yangon Division Tax Assessment Committee comprising personnel from the Yangon City Development Committee and the Internal Revenue Department under the Ministry of Finance and Revenue.

Source:Xinhua