by Daryl Lum | Jun 28, 2024 | Bangkok Property Market Updates, Legal, Tax & Due Diligence
Thailand has announced a 7% value-added tax (VAT) on imported goods priced under 1,500 baht (approximately USD 40.93) effective from July to December, according to a finance ministry representative on Friday, June 21.
Currently, imported goods under 1,500 baht are exempt from VAT in Thailand.
Post-December, legislation will be updated to enable the revenue department to maintain the VAT collection on these items, the official informed Reuters.
In February, Deputy Finance Minister Julapun Amornvivat highlighted that low-cost Chinese imports, previously exempt from customs duties and VAT, were adversely affecting local manufacturers.
Prime Minister Srettha Thavisin has also pointed out that there have been instances of false declarations for low-cost Chinese products in free trade zones to evade VAT, which he believes should be enforced.
by Daryl Lum | Jun 25, 2024 | Bangkok Property Market Updates, Infrastructure & Urban Development
Thailand is considering Bangkok and Pattaya as potential venues for hosting a Formula 1 race, aiming to enhance sports tourism within the country.
Prime Minister Srettha Thavisin announced on Sunday that U-Tapao Airport, Pattaya, and Bangkok are being evaluated as candidate locations for the prestigious event.
In a post on X following his visits to U-Tapao Airport in Rayong and Jomtien Beach in Pattaya, he examined the feasibility of these sites for Thailand’s first-ever Formula 1 race, contingent on approval from the race organizers.
“As we pursue our Formula 1 ambitions, the U-Tapao Airport Project includes a facility designed for the ‘circuit race’ type, ensuring maximum safety,” he wrote. “Meanwhile, Bangkok and Pattaya are being considered for ‘city race’ types, featuring the allure of the City of Angels and picturesque beachside routes.”
During a visit to Italy in May, the prime minister expressed his hopes for constructing a race track near U-Tapao Airport.
Thailand is in competition with South Korea and Indonesia to secure another Asian venue for Formula 1.
He stated that Thailand is prepared to build the circuit by 2027 or 2028 if selected as the next Asian host.
Singapore currently uses its city streets to host the Singapore Grand Prix.
by Daryl Lum | Jun 24, 2024 | Bangkok Property Market Updates, Legal, Tax & Due Diligence
The government is considering increasing the allowable foreign ownership in condominiums from 49% to 75% of a building’s usable space, Deputy Prime Minister Phumtham Wechayachai announced.
The Ministry of Interior has also been tasked with evaluating the potential extension of property leaseholds for foreigners from 50 years to 99 years, Phumtham informed the press on Friday.
This initiative was initially proposed during a cabinet meeting in April, as part of the government’s efforts to boost the economy and attract foreign investment.
Local property industry leaders have been advocating for a revision of the foreign ownership cap, citing growing demand from international buyers.
Concurrently, high household debt levels and stricter lending conditions have dampened property demand among local buyers, prompting developers to proceed with caution.
According to the Real Estate Information Centre (REIC), the number of land allocation permits nationwide fell by 19.7% in the first quarter of this year, marking the largest decline in nine quarters, as developers adapted to consecutive drops in low-rise house transfers.
The REIC has highlighted that foreign ownership quotas for condos in popular destinations like Phuket and Pattaya are fully occupied in several projects.
“Certain areas do not attract domestic buyers, so increasing foreign ownership quotas in those regions could stimulate the economy, as the condo market there relies heavily on foreign demand,” said Vichai Viratkapan, acting director-general of the REIC.
Some projects have responded by setting aside units for leasehold contracts, priced 10-15% lower than freehold units, to cater to the predominantly foreign buyers.
In 2023, foreign condo transfers totaled 14,449 units, a 25% increase from the previous year, with transaction value rising by 23.5% to 73.1 billion baht, surpassing pre-pandemic levels, according to the REIC.
Chinese buyers led the market, accounting for 45.8% of the units transferred and 46.7% of the total value, followed by buyers from Russia, the United States, and Myanmar.
by Daryl Lum | Jun 17, 2024 | Bangkok Property Market Updates, Infrastructure & Urban Development
The prospect of train travel between Bangkok and Beijing is becoming more tangible as Thailand advances its rail network expansion.
According to the State Railway of Thailand, a trial service between Bangkok and Vientiane, the capital of Laos, is scheduled for July 13-14. Once operational, this new link will enhance transportation between Thailand, Laos, and China, as stated by railway official Ekarat Sriarayanphong.
The inauguration of the Thailand-Laos connection will enable train travel from Bangkok to Beijing, with stops in Vientiane and Kunming, a city in southern China. From Kunming, travelers can board a semi-high-speed train to Beijing.
Covering approximately 3,218 kilometers, the journey will take nearly a full day due to the region’s mountainous terrain. In contrast, a direct flight takes just under five hours.
Currently, a high-speed train between China and Laos facilitates the transport of Thai goods to Kunming, significantly reducing delivery times from two days by truck to 15 hours, as reported by Nikkei.
Thailand aims to strengthen its connectivity with China, its largest trading partner, to stimulate economic growth, which has been lagging behind other regional economies.
From January to November 2023, Thailand’s exports to China reached nearly USD 32 billion (SGD 43 billion), with key exports including fruit and rubber products. Imports from China during the same period were valued at USD 65.3 billion, dominated by electric equipment and machinery.
In addition to trade, the two countries are enhancing tourism ties. Chinese visitors can stay in Thailand visa-free for up to 60 days, while Thai tourists can visit China visa-free for 30 days.
The tourism sector is expected to receive a further boost from a separate, albeit delayed, project to establish a high-speed rail system linking Thailand to China through Laos by 2028.
by Daryl Lum | Jun 6, 2024 | Bangkok Property Market Updates, Expat Living & Relocation
According to a statement from the Thai government, while Cambodia and Laos have joined the list of countries eligible for a 60-day visa-free stay, Myanmar has not been included. Previously, Myanmar, along with Cambodia and Laos, received only 14-day visas.
Myanmar is not among the 93 countries on Thailand’s newly extended visa-free list, which will take effect on June 1, sources reported.
In an effort to boost tourism, the Thai government has extended the list of 60-day visa-exemption countries, effective June 1. Previously, nationals from certain countries could stay in Thailand for 60 days without a visa. Now, six more countries have been added to this list: China, Laos, Mongolia, Russia, Cambodia, and Macau.
As a result, Myanmar citizens will continue to be limited to a 14-day stay without a visa.
Additionally, a new type of Destination Thailand Visa has been introduced, allowing individuals involved in business, Thai culinary education, art, and traditional Muay Thai boxing to stay for 180 days under the new visa policy.
Currently, more Myanmar nationals are purchasing condos and conducting business in Thailand than in previous years. In the first quarter of this year, Myanmar surpassed Russia to become the second-highest country in terms of condo purchases in Thailand.
