New land and property tax rates passed by govt

[buksida]

A new land and building tax bill passed Friday by the junta-appointed National Legislative Assembly that will come to effect January 2020.

The new tax covers agricultural, residential, commercial and undeveloped property. It was passed 169-0 with two abstentions.

Farmland will be taxed on a graduated scale based on its value. Those owning farmland worth up to 50 million baht will be taxed annually at 0.02 percent of the land’s estimated value.

Those with holdings valued at 75 million to 100 million baht will pay 0.03 percent, while those with land worth 100 million to 500 million baht will be taxed at 0.05 percent.

Hardest hit are owners of undeveloped tracts, who will be taxed at 0.3 percent of the value per annum. That rate will tick up an additional 0.3 percent every three years the land remains used until it caps at 3 percent.

Residential land and houses worth up to 50 million baht will pay a 0.02 percent annual tax on the property’s value, an equivalent of 200 baht per every 1 million baht. Homes and land worth 50 million to 75 million baht will be taxed 0.03 percent. If worth 75 to 100 million baht, the annual rate will be 0.05 percent. If more than 100 million baht, the annual tax rate increases to 0.1 percent.

Primary residences worth no more than 50 million baht will be exempt. If owners own only a building, tax will be exempt if the estimated price is not over 10 million baht.

Owners of commercial property valued under 50 million baht will be taxed at the rate of 0.3 percent. If it’s valued between 50 million to 200 million baht, it will be subjected to a 0.4 percent tax, or 4,000 baht per 1 million baht in value. Commercial property worth between 200 million and 1 billion baht will be taxed by 0.5 percent. Those between 1 billion to 5 billion baht will be taxed at 0.6 percent, while those over 5 billion will be subject to 0.7 percent tax.

In the first three years after the law comes into effect, ordinary land and building owners as well as agricultural land owners will remain exempt.

Source: http://www.khaosodenglish.com/news/busi ... -assembly/

[Big Boy]

I saw this easy to understand chart a couple of days ago - it was the closest I've come understanding land and property tax while I've lived here:

land-tax-1.jpg (93.16 KiB) Viewed 620 times

[Bluesky]

Wife is currently looking at the property tax that will come into force as of next year and trying to work out what the annual liability will be. For the house there is a formula as she understands based on the square meterage of the dwelling but for the land component it will be based on a land office valuation. To actually get this valuation from the land office apparently requires a trip to the land office with the chanote and ID card. Would be interested if anyone has actually gone through this process on land valuations recently

[hhinner]

The article in the OP says it comes into effect Jan 2020, not next year. The land department may not have finalised their valuations yet anyway,

[T.O.M.]

The article in the OP says it comes into effect Jan 2020, not next year. The land department may not have finalised their valuations yet anyway,

You pay the 2019 tax in January 2020....

[hhinner]

But the new bill doesn't come into force until 2020 therefore the taxes for 2019 should be under existing arrangements. Unless the new bill is retroactive? Being Thailand that could be the case.

[HHTel]

Wife is currently looking at the property tax that will come into force as of next year and trying to work out what the annual liability will be. For the house there is a formula as she understands based on the square meterage of the dwelling but for the land component it will be based on a land office valuation. To actually get this valuation from the land office apparently requires a trip to the land office with the chanote and ID card. Would be interested if anyone has actually gone through this process on land valuations recently

I was doing some mental arithmetic until I got to:

Primary residences worth no more than 50 million baht will be exempt. If owners own only a building, tax will be exempt if the estimated price is not over 10 million baht.

[buksida]

DEMYSTIFYING THE NEW PROPERTY TAX CODE
Come Jan. 1, 2020, 25 long and delicate years of work by 13 governments to bridge the economic divide of the Thai population will hit the books.

For the first time ever in Thai legal history, those with deep pockets will be forced to pay any tax on their houses at all. It will drive a redistribution of land, as those hoarding large, undeveloped tracts will face a powerful incentive to divest.

Commercial, residential, vacant and agricultural lands are the four types of taxable land and buildings that the new property tax law covers.

All in all, low- to middle-income people should not be affected much by the new law, which aims to increase revenues for local administrative organizations such as municipalities and sub-district government bodies by way of “taking money from the rich and distributing it to the poor.”


http://www.khaosodenglish.com/news/busi ... tribution/