The Home Builder Association (HBA) <\/span><\/strong><\/span>is confident that the home construction tax deduction measure ‘10,000 per million’ <\/span><\/strong>will reduce personal income tax for those looking to build a house valued at <\/span><\/strong>1 million, allowing a deduction of 10,000 baht, with a maximum of 100,000 baht, effective from April 9, 2024, until <\/span><\/strong>December 31, 2025.<\/span><\/strong> This will stimulate purchasing power and increase opportunities for consumers to own homes, driving the overall home construction market to expand in the second quarter and supporting Thailand's GDP growth.<\/span><\/strong> <\/strong>

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Mr. Olar Chanphu, President of the Home Builder Association (HBA) <\/span><\/strong>, revealed that the economic stimulus measures approved by the Cabinet include 5 measures aimed at supporting housing for the public and aligning with <\/span><\/strong>Thailand Vision <\/span><\/strong>to elevate Thailand as a global industrial city.<\/span><\/strong> These measures are expected to stimulate GDP growth by approximately 1.7-1.8% this year, promoting housing for the public, with the details of the measures as follows:<\/span>

The “Home Construction Tax Deduction of 10,000 per Million” allows for a personal income tax deduction for those looking to build a house as specified in the construction contract and stamp duty documents (Form A.S.5) with a construction value of 1 million baht. This allows for a tax deduction of 10,000 baht, with a maximum of 100,000 baht, effective from the date the law is enacted until December 31, 2025. This measure, approved by the Cabinet on April 9, 2024, is expected to significantly impact the home construction business in the second quarter and marks the first time the home construction industry has received a tax deduction for building on one's own land.<\/span>

The economic stimulus measures for the real estate sector and related businesses also include a reduction in registration fees for property rights and legal transactions for residences in 2024, reducing the property transfer registration fee from 2% to 0.01%. Additionally, the mortgage registration fee is reduced from 1% to 0.01% for residences priced up to 7 million baht and mortgage amounts not exceeding 7 million baht, applicable to Thai citizens. This measure is effective from the date the law is published in the Royal Gazette until December 31, 2024.<\/span>

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The Happy Home loan project, with a budget of 20 billion baht from the Government Housing Bank (GHB), supports loans for low to middle-income citizens at a fixed interest rate of 3% per year for 5 years, with a maximum loan amount of 3 million baht and a maximum loan term of 40 years. Homebuyers can apply for loans with GHB from now until December 30, 2025. Additionally, there is the Happy Life loan project with a budget of 10 billion baht, supporting loans for citizens with an average interest rate of 2.98% for the first 3 years, with loan amounts starting from 2.5 million baht, available for application from today onward.<\/span>

Furthermore, there are measures to promote housing projects for low-income individuals (BOI housing project), which includes a 3-year corporate income tax exemption for investments not exceeding 100% of the investment amount for the development of condominium buildings with a usable area of at least 24 square meters and single or row houses with a usable area of at least 70 square meters priced not exceeding 1.5 million baht. These projects must meet the specified housing conditions of at least 80%, with applications for promotion accepted until the last working day of 2025.<\/span>

The self-built housing market is valued at approximately 200 billion baht, and during the first quarter of this year, many buyers delayed their decisions indefinitely due to economic conditions. The government's push for the home construction tax deduction measure ‘10,000 per million,’ with a maximum deduction of 100,000 baht, will help stimulate purchasing power and build consumer confidence. This is a crucial factor that will revitalize the home construction market in the second quarter of this year, leading to increased sales compared to previous periods. This measure will also positively impact related businesses such as construction materials and employment, benefiting from this initiative.<\/span>

Additionally, it encourages home builders who have not yet registered as legal entities to do so and enter the tax system, resulting in the government receiving 7% VAT and corporate income tax, which benefits the overall economy. However, the implementation of these measures will be for a short period. If in the future, the time frame is extended, similar to the personal income tax deductions for life insurance purchases, it would benefit those looking to build their own homes and promote the home construction business and the economy in the long term.<\/span>

Overall, the 5 economic stimulus measures for the real estate sector will contribute to positive changes, whether in increased property transactions, growth in self-built home orders, or funds flowing into related businesses, ultimately benefiting businesses, consumers, and the country's economic expansion,” Mr. Olar stated.<\/span>