Page 59 - BAM ONE REPORT 2564 (ENGLISH VERSION)

P. 59

Form 56-1 One Report 2021
Bangkok Commercial Asset Management Public Co., Ltd. 57

According to the notice of BOT, the asset management companies may operate any necessary works for managing
NPLs to restore the debtors purchasing or accepting transfer from the ﬁnancial institutions such as debt restructuring,
a compromise agreement or debt composition agreement making, or shareholding in a Company from the debtors
settling debts.

Limitation of charged interest rate
The asset management companies may charge interest from the debtors according to the existing agreement,
not exceeding the interest rate as of the date of transfer acceptance (under a condition that if the existing agreement
determines interest at ﬂoating rate, with no basis for calculation of the existing ﬁnancial institution, such rate shall not
exceed the interest rate speciﬁed by BOT). However, in case the asset management Company allows the debtors according
to the existing agreement to borrow additional money for adding values to the transferred property, the asset management
Company can charge interest at rate agreed with the debtor, such rate is not subject to maximum interest rate at 15.0%
per annum. As for loan default, the Company may charge a penalty interest rate at not more than 3% per annum above
the maximum interest rate actually collected as speciﬁed in the agreement.
Tax effect
Exemption of fee and tax from NPLs transfer acceptance from the ﬁnancial institution
The emergency decree on asset management Company deﬁnes the asset management companies to be exempted
for fees and taxes arising from asset transfer acceptance from the ﬁnancial institutions as announced by the cabinet in
the government gazette, and it may be general or speciﬁc.

Land and building tax collection
The Land and Building Tax Act B.E. 2562 (2019) regulates provisions about tax collection from the land and
building owners, and sets the maximum tax rate to be calculated from appraised price. The maximum tax rate depends
on property type, and it will be collected at rate speciﬁed in the Land and Building Tax Act from 1 January 2020.

Later, the “Royal Decree on land and building tax reduction B.E. 2563 (2020) (Decree), issued pursuant to Section
55 on 20 January 2020, valid from 1 January 2020 and hereafter, stipulates the land or building that is NPAs that the
asset management companies according to the laws on asset management Company (including BAM), obtained not
over 5 years, from the date that real estate belongs to the sector, will be reduced tax at rate of 90% of payable taxes.

In 2021, the Ministry of Finance has considered extending the period of the land and building tax relief.

As regards the criteria for tax collection set to be applicable for the ﬁrst two years only (tax collection to start
in 2020) pursuant to the Transitory Provisions, Section 94, of the Land and Building Tax Act, the Ministry of Finance by
the Fiscal Policy Ofﬁce currently deems it appropriate to maintain the land and building tax rates at the original rates
as set forth in the Transitory Provisions, Section 94, for the collection of land and building tax from 2022 onwards.
Therefore, the Royal Decree on the Stipulation of Land and Building Tax Rates B.E. 2564 was promulgated on December
13, 2021, taking effect as from December 14, 2021, with tax collection to be based on land use classiﬁcation.

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