No obligation to pay 2% fee or obtain landowner consent in apartment sales

 

TAX laws do not require the payment of two per cent of sales proceeds to landowners during apartment transfers, nor do they require a landowner’s signature for a sales contract to be valid, clarified Dr May Than Nwe, Yangon Region Minister for Planning, Economics and Finance.

The Minister made the clarification on 26 August, during the ninth day of the third regular session of the Third Yangon Region Hluttaw, in response to a question raised by U Aung Pyae Phyo, Hluttaw Representative for Mayangon Township Constituency 2.

According to U Aung Pyae Phyo, during some apartment sales in Yangon, landowners have been demanding two per cent of the transaction value as a signature fee, creating difficulties for both buyers and sellers when the fee is not paid. He also highlighted a persistent misconception among the public that a contract is legally valid only if it bears the landowner’s signature.

Addressing these concerns, Minister Dr May Than Nwe clarified that tax laws contain no provisions requiring a two per cent payment to landowners or stipulating that a contract is valid only if it bears the landowner’s signature.

She further noted that income tax and stamp duty on apartment transfers are currently assessed and collected in accordance with the law, based on tax declarations submitted by taxpayers and official information obtained from relevant departments, including the Yangon City Development Committee (YCDC) and the Department of Urban and Housing Development (DUHD). — TWA/TH

#GlobalNewLightOfMyanmar