Sunday, January 27, 2013

Condominium Charges, Now Taxable




Whether you are existing condominium dwellers or would like to purchase one, you may want to know other taxes that you will pay aside the value-added tax when you purchase a unit or adjacent units where aggregate amount exceeds the threshold for VAT.

Likewise, condominium charges are now subject to income tax and value-added tax. For a long time, association dues, membership fees and other assessments/charges collected by a condominium corporation from its members, tenants and other entities are not taxable as they are merely held in trust to be used for operating, managing and maintaining condominium project, costs and since no gain or profit are realized.

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