Tax levied on real estate dealing in Bago Region earned over US$410million

The tax levied on real estate transactions in Bago Region in the six months of this fiscal year has reached over US$410million, it is learnt from the Bago Region Internal Revenue Department.

The tax has to be paid per the prescribed tax rate at the tax office in the regional government concerned when real property dealing is made. Additionally, real estate agents have to pay a stamp duty, which is 5 per cent of the income.

The stamp duty is needed to affix to the contract. The rate of the stamp is decided by six units of the region. The contracts without stamp duty are illicit. If people are found in violation, they will be fined 10 times the amount of normal tax, said U Soe Hla Myint, the deputy director of Bago Region Internal Revenue Department.

The number of people evading the taxation has risen in the real estate sector, caused by the high tax rate on real property, it is learnt from the real estate agents.

According to the Union Tax Law, people do not need to pay tax in purchasing the real property if they can present how they earn. If they fail to provide how they earned, the property worth under Ks100million is taxed at na rate of 3 per cent. Those who purchase property worth between Ks100 and 500 million are liable to pay a 5 per cent tax, while a 10 per cent tax is levied on property worth between Ks500 and Ks1,000 million, 20 per cent for property worth above Ks1,000 million, and 30 per cent for property worth above Ks1,500 million, it is learnt.

Source: Global New Light of Myanmar

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