Thailand okays tax break for real estate trusts to boost pandemic-hit sector

Bangkok, Thailand. Photo: Pixabay

Thailand on Tuesday approved a tax break for real estate investment trusts to boost liquidity for operators hit by the pandemic, a senior official said.

Real estate investment trusts or REITs buybacks will be exempt from tax and are expected to generate re-investment of about 30 billion baht ($868.06 million) in the industry, said a government spokeswoman, Traisulee Traisoranakul.

The government will lose about 10.4 billion baht in tax revenue and fees, she said.

The property sector, which contributed about 6% of GDP in 2019, slowed due to the pandemic and began recovering this year.

So far, eight REITs have expressed interest in the new tax breaks including trusts in hotels and amusement parks, said Traisulee.

Reuters

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