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