Land Value Tax Exemption
Private institutions participating in major public infrastructure projects as defined in Paragraph 2, Article 3 of the Act for Promotion of Private Participation in Infrastructure Projects (PPIP Act) are eligible for a two-year exemption from Land Value Tax on land approved by the competent authority for their direct use during the construction or operation period.
From the third through the fifth year, the Land Value Tax shall be reduced by 50% of the amount payable.
If the tax-exempt land is transferred to a third party before the expiration of the exemption period for the purpose of continuing the construction or operation of the project, the tax exemption or reduction may continue until the original exemption period expires.
House Tax Exemption
Private institutions participating in major public infrastructure projects as defined in Paragraph 2, Article 3 of the PPIP Act are eligible for a two-year exemption from House Tax on legally registered buildings approved by the competent authority for their direct use.
From the third through the fifth year, the House Tax shall be reduced by 50% of the amount payable.
If a tax-exempt building is transferred to a third party before the expiration of the exemption period for the purpose of continuing the operation of the project, the tax exemption or reduction may continue until the original exemption period expires.
Deed Tax Exemption
During the construction or operation period of a major public infrastructure project as defined in Paragraph 2, Article 3 of the PPIP Act, private institutions are exempt from Deed Tax on real property acquired through ownership transfer or the establishment of a dien right (a statutory security interest) for their direct use.
If such real property is converted to another use or transferred to another party within five years from the date of the Deed Tax declaration, and is no longer used directly for the approved project, the previously exempted Deed Tax shall be recovered.
The same tax exemption also applies where a private institution, with the approval of the competent authority pursuant to Paragraph 3, Article 52 of the PPIP Act, takes over or continues the construction or operation of a project and thereby acquires ownership of the relevant real property.