The new land and buildings tax (property tax) has been approved and passed by Parliament and its implementation had been postponed until August 2020.

At this time, the local authorities are working hard to establish the information necessary for the Treasury Department given the official evaluation of property value according to their estimates.

This is different from the previous land usage taxes where the Oar.Por.Tor or Municipal office did an estimation of income from properties.

The properties will be taxes by four groups of Residential Use, Agricultural use, Commercial use and Vacant use. 

Depending on the use and the value of the property, the yearly tax will be from 0.01 per cent to a maximum 0.1 per cent, with starting with agricultural land and gradually increases by value.

For example, Commercial Use over a value of THB 5.0 Billion at 0.7 per cent to Unused Land Starting at 0.3 per cent equates to 3,000 THB per million of the Appraisal value.

The rate will be increased by 0.3 per cent every three years until the rate reaches 3 per cent.

First residential homes up to THB 50 Million shall be exempted from any taxes (owned by a Natural person, not a company nor leased out as this will be considered Commercial use).

As especially unused land will be taxed highest, the property owners are expected to plant on it to fall under the lower category and might also sell some of their secondary homes which do not generate income. 

This article is written by Mr. Mongkol Ruenwutchanapuech and Friedrich ‘Sam’ Fauma of ILO - International Law Office, Patong Beach Co., Ltd. 

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