Economy Yangon government releases land price assessments The Yangon Regional Revenue Department has officially released its city-wide assessment on land prices in an attempt to collect taxes on property transactions fairly and more effectively. According to officials from the Yan-gon Regional Revenue Department, the assessment was made because buyers often claim extremely low purchase prices for properties in order to avoid paying taxes. According to rules put out by the Internal Revenue De-partment, a buyer must pay a 37 percent tax on a property purchase if he cannot prove the source of the funds used to make the purchase. This tax includes a 30 percent transaction tax and 7 percent stamp duty. However, if the buyer can identify the source of money used to buy the property, taxes will be partially exempted. These tax rules were put in place to prevent money laundering. Government teams visited various neighborhoods in Yangon to determine the maximum and minimum values for each area and a final report was then sent to the Union government and the Ministry of Finance for final approval. The prices were assessed on a per square foot basis depending on location. Many industry experts feel the government assessments are way too low compared to market prices . U Win Shein, the Minister of Finance, stressed that the government’s approach is intended for the assessment of taxes only and is not intended to regulate market prices. According to local real estate companies, property transactions have cooled since the government announced their plans to assess land prices.
Posted on: Fri, 04 Oct 2013 05:16:59 +0000
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