The Property Benchmark Prices Release for 2017-2018
What does the property benchmark indicate?
Property benchmark here indicates specified standard land value per square foot categorized by every street location which is located within the townships of Yangon Region. It also consists of standard price values per square foot on selling or buying condominiums and apartments within townships of Yangon divided into floor level (storey).
Who take charge of the benchmarks and how the benchmark estimate?
The Internal Revenue Department under the Ministry of Planning and Finance released a new list about land benchmark prices for levied year 2017-2018. The standardized assessments of Land and condos once again have been redefined for the townships in Yangon according to market condition in order to collect taxes. The Price valuation board sets the country’s property rates by region as an effort to counterbalance economic shocks or downturns. Since 2013-2014 FY, the department set flat prices per square foot of land in Yangon according to the townships. The department annually takes the suggestions from each township’s IRD officials and real estate agencies to upgrade the benchmark prices and revised the previous land benchmark prices. The property valuation board updates the property value annually to reflect the activity of the real estate market as well as regional and national economies.
What is property tax and how is the benchmark applied in real estate transactions?
The property tax here means acquisition tax for the income tax cheaters who failed to serve income tax regularly. It is a one-shot tax and only to submit to the government once the property transition is made. Whenever a person makes a property transaction, he/she needs to contact Regional Revenue Office which is located in the same township where the subject exits. The person needs to submit every document related to the property transaction. Then, the local authorities will inspect how the applied money for the subject property comes from and if he/she pays the income tax regularly or not. If they found the person failed to be dutiful, the price valuation board will take action over the property transaction. They will charge the property tax by judging the subject’s located area with specific land benchmark price and ask fine charge as property tax according to the given benchmark prices.
How is the property tax rate divided?
The Ministry’s property rates are directly connected to the property tax rate, and tax charges are 15 percent of a 1 MMK to 30,000,000 MMK property purchase, 20 percent of 30,000,001 MMK to 100,000,000 MMK, and 30 percent for every property purchase over 100,000,001 MMK respectively. The income tax cheater has to pay the property tax by the result of the calculation from tax percentage of the transaction cost upon the property benchmark price where the subject is located. For instance, if someone purchase a property which is worth 30,000,000 MMK, his property tax will be 4,500,000 MMK by deducting 15% from the benchmark price. Besides, 4% for the stamp duty fee is also needed to serve together with the property tax.
Who is responsible for the property tax and what is the purpose of charging property tax?
The property tax is responsible for income tax cheaters who failed to pay income tax regularly. The government uses this procedure to avoid income tax cheating and overtax on property transactions.
We learned that there are also annual property taxes. They are levied on the property’s annual value or the property’s anticipated gross rent if it is leased or unfurnished. The property’s annual value is determined by the local authorities where the property is located. The annual property tax consists of general tax, lighting tax, water tax and conservancy tax.
Please click the following links to learn the property benchmark prices for Yangon region for 2017-2018 .
- Land Benchmark Prices for Year 2017-2018 levied by Price Valuation Board (Yangon Region)
- Land Benchmark Prices for Townships outside Yangon City Development Committee Boundary
- Benchmark Prices on Apartment Selling/ Buying for 2017-2018 Levied Year
- Benchmark Prices on Condo Selling/ Buying for 2017-2018 Levied Year