According to U Tin Htwe, assistant director of Internal Revenue Department, Mandalay Region, IRD approved the standard prices for real estate market in Mandalay Region on November 1, showing 10% drop compared to that of previous rates.
He added, “In answer to the submission to the Mandalay Region Cabinet, the standard prices for real estate were reduced like this for the benefit of the public.”
With the help of township administrators, IRD made list of basic prices of real estate in wards and villages be compiled and following 3-time-meeting, it was submitted to the Region Cabinet. It is learnt that tax-payers are required to have their possession registered in the registration offices and to testify their belongings in the presence of respective revenue officers.
Under the prescription of the law, 30% taxes are levied on income from undisclosed sources and capital gains. According to the standard prices, only 15% are to be paid as tax.
Under section 22 of Union Tax and Revenue Law, in buying real estate such as land plot, 15% tax must be imposed upon K 1 to K 300 lakhs in value, 20% tax upon K 300 lakhs above to K 1000 lakhs and 30% tax on K 1000 lakhs above, it is learnt.
Previous income tax rates were 3% tax on Kyats 1000 lakhs, 5% upon K 5000 lakhs and 10% tax on K 10000 Lakhs.
Aung Thant Khaing