However, not many people are aware tax is designed to correct the flaws of the House and Land Tax Act and to collect more revenue from properties used for commercial purposes as well as unused properties. The latter tax is expected to generate huge sums for the government.that we are at the edge of a third wave. In
Last week, the cabinet approved a bill combination with the enforcement of the property tax, it could result in panic sales and a plunge in property prices in the short term. Of course, this will be viewed by the rich as another opportunity to acquire assets.
For more than two decades, the Revenue Code has adhered to a "safe harbour" rule where real property transactions are concerned. When an individual transfers ownership, or the right of possession, in an immovable property, the taxable income is the "value appraised for the purpose of charging the registration fee of the rights under the Land Code", as announced by the Land Department and valid on the day of the transfer.
This rule has been applied, irrespective of whether a price is charged, and the assessment value is normally much lower than the real price at which the sale takes place.to put an end to the unrealistically low
For example, where a seller sells a plot income tax on immovable property sold by individuals by modifying Section 49 bis of the Revenue Code. Under the draft bill, the registrant at the Land Department will be required to apply either the "price declared by an individual, or the value appraised for the purpose of