The 2016 Budget proposes to remove taxes on land leases, ease restrictions on land transfer and no Mansion Tax for condominiums.
Below are the relevant extracts.
Land (Restriction on Alienation) Act
The budget proposes to remove the tax imposed on the leasing of land to foreigners and also to consider the removal of restrictions on ownership on identified investments imposed through the Land (Restrictions on Alienation) Act, which has been an impediment for attracting investments to the country.
The key changes are:
(i) Restriction on transfer will be removed for certain identified investments.
(ii) Tax on leasing of lands will be removed.
(the relevant provisions of the Land (Restriction on Alienation) Act No. 38 of 2014 will be amended]
Mansion Tax (PART VIII of the Finance Act No. 10 of 2015)
(i) The mansion tax applicable on condominium units will be removed; and
(ii) The first installment of the Mansion tax is payable on or before March 31, 2016.
(PART VIII of the Finance Act No. 10 of 2015 will be amended)
Digital 'Land Bank'
The budget proposes to introduce a “land bank” which is an electronic database of state-owned lands. Subsequently, this database can be extended to contain records of the privately owned land as well.