Tax measures to promote real estate investment through trusts

        The real estate sector is one of the business sectors that was affected by the coronavirus disease 2019 (COVID-19) outbreak; therefore, the government has issued measures to help businesses increase liquidity. 

        Tax and fee measures to encourage real estate investment through real estate investment trusts are measures enacted by the government to assist entrepreneurs with property funds (Property Fund), or Fund 1, in converting the property fund into a real estate investment trust (REIT), or the Trust. This will increase liquidity for entrepreneurs while also assisting the real estate business in the form of a property fund to continue indefinitely, as detailed below:

1) Tax Measures
1.1) There will be income tax exemption for property fund unitholders on income generated by the conversion of property fund investment units into trust certificates generated by the conversion of property funds into real estate investment trusts;
1.2) Property funds are exempt from VAT, specific business tax, and stamp duty on the value of their income tax base or instrument action arising from the transfer or creation of real rights or any rights in property as a result of the conversion of a property fund into a real estate investment trust. However, for the conversion of a real estate investment trust from a property fund.
2) Fee Measures

        Determine the registration fee for rights and juristic acts relating to immovable properties and capitalized condominiums arising from the conversion of property funds into real estate investment trusts under capital market trust law; the fee will be 0.01% but not more than 100,000 baht.

        These measures will be in effect from the date the law is passed until 31 December 2024.