'Changes needed' to make Thai REITs more attractive
By Danny Bance

'Changes needed' to make Thai REITs more attractive

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There need to be changes made to the taxation of Real Estate Investment Trusts (REITs) in Thailand, if this asset class is to become more attractive to investors.

Speaking to the Bangkok Post, Sorachon Boonsong, a partner at Baker & McKenzie, suggested REITs should be taxed at around ten per cent, which would mean they fall in line with global expectations.

He also said leases for land need to be extended beyond 30 years - preferably to around 70 or 90 years - if the government wants to generate serious interest in this type of Thai property investment.

Mr Sorachon stated: "If the new REIT regulations can come on stream soon, then while the government imposes taxes on profits gained from REITs at the same international standard, investment in Thailand's REITs will be attractive enough to draw foreign institutional investors."

Earlier this month, chief executive officer of the Asia Pacific Real Estate Association Peter Mitchell told REIT.com that Thailand is one Asian location where a REIT market is expected to develop in the second half of this year, noting the country has introduced proper legislation to support the investment vehicle.
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