A Quick Guide to the New Thai Land and Buildings Tax

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A Quick Guide to the New Land and Buildings Tax in Thailand
This year is the first time owners will pay under the new Land and Buildings tax in Thailand

The New Thai Land and Buildings tax went into effect

In 2019, the new Thai Land and Buildings tax went into effect, however the first time that property owners feel the effect and pay taxes under the new law will be in 2020. For most of the single residential property owners, these changes will not be a problem at all. In fact, the amends affect the luxury and ultra-luxury properties and an individual person owning many properties. In this respect, there are some things you need to know. (Link page: Government’s relief for New Tax Laws for Land and Buildings in 2020)

The Changes won’t affect most people

As said before, the renewed Thai Land and Buildings tax is looking at owners of luxury properties and individuals owning multiple residential units. Individuals who own a sole residential property with a price (value) less than ฿ 50,000,000 (50 million Baht) are exempt from the new tax. Vacant properties priced at ฿ 10,000,000 (10 million Baht) or less are also exempt from the new tax reforms, but keep reading, we will explain more later ¹.

People owning an ultra-luxury residence valued between ฿ 50,000,000 (50 million Baht) and ฿ 75,000,000 (75 million Baht) fall in the 0.03 percent tax bracket while ฿ 75,000,000 (75 million Baht) and ฿ 100,000,000 (100 million Baht) properties fall into the 0.05 percent group and anything over these values can expect a 0.1 percent tax.

2) Owners with multiple properties need to prepare

If you own over one residential property, you can expect paying tax according to the new Thai Land and Buildings tax. They will tax any additional property valued at ฿ 50,000,000 (50 million Baht) or below at 0.02 percent. They tax anything greater than that value at the ultra-luxury residence rate listed above.

3) Taxing of Vacant units

Those in possession of a vacant residential property may be subject to paying under the new Land and Buildings tax in Thailand. As said, vacant units valued at ฿ 10,000,000 (10 million Baht) or less are exempt from the tax as long as the individual does not own over one unit. Empty properties valued between ฿ 10,000,000 (10 million Baht) and ฿ 50,000,000 (50 million Baht) will fall into the 0.02 percent bracket with increasing rates from there.

¹ Please note that vacant properties valued at ฿ 10,000,000 (10 million Baht) or less are not exempt from the tax if they count as an additional unit. So, when someone already owns a unit, then they can expect to pay tax for all empty properties at the additional property rate.

4) Transition period

Property owners don’t have to agonize paying more in property taxes just yet. The new Thai Land and Buildings tax contains a transition period of three years. During this period, property owners are eligible to pay what they would owe under the present House and Land tax. However, there will be an additional fee that increases each year. But this option is only available when the estimated tax under the new law is higher than under the old law. After the third year, however, the property owner is subject to paying the new tax.

5) Talk to a professional if things are unclear

Every property owner should have received information about the changing Thai Land and Buildings tax law. But if you still have questions that need answering, make sure you consult a professional. This way you can make sure you understand the new requirements and responsibilities. These professionals can give you a full range of options.

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