Announcement

Collapse
No announcement yet.

January 1st, 2020 New Property Tax Law in Thailand

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • January 1st, 2020 New Property Tax Law in Thailand

    Effective date: Taxes will commence to be collected under the new law from 1 January 2020.

    A friend of the girlfriend just gave everyone she knows a heads-up. A land officer paid her a visit today.

    The woman owns a large piece of land with a few homes on it which some of her relatives live in. The land officer started asking questions......
    • From BDO Thailand


    Tax rates after 2021 shall be prescribed by Royal Decree. The local authority empowered to collect the tax has the power to impose a higher rate but in any case it shall not exceed the ceiling rates.

    Tax exemptions

    Tax exemptions are provided in the following cases:

    Land and buildings owned by individuals that are used for agricultural purposes shall be exempt from tax until 2022, after which a tax exempt threshold of Baht 50 million shall apply.

    A tax exempt threshold of Baht 50 million shall apply to land and buildings owned by individuals that are used as their place of residence, if their names appear in the house registration book on 1 January of the tax year

    A tax exempt threshold of Baht 10 million shall apply to buildings owned by individuals, where they are not the land owner, that are used as their place of residence, if their names appear in the house registration book on 1 January of the tax year. By definition this would include a condominium unit.

    Transitional relief

    In the first three years that the new property tax is collected, if the tax assessed is higher than the tax previously payable under the House and Land Tax Act, the taxpayer shall be liable to pay the house and land tax amount plus a portion of the excess in each year, being 25% in the first year, 50% in the second and 75% in the third year.

    The Fiscal Policy Office has issued a summary of the implications of the new law (in Thai language): https://www.bdo.co.th/getattachment/...spx?lang=en-GB

    Link: https://www.bdo.co.th/en-gb/insights...aw-in-thailand
    Keep your friends close and your enemies closer

  • #2
    Yet, how does all this concern you?

    Comment


    • #3
      • Landowners panic over tax changes/Category reshuffle to lead to higher rates



      Several homestays are available at Mae Kam Pong village in Chiang Mai.

      Operators of homestay and home-sharing premises will soon face much higher commercial property tax than buy-to-let homeowners who pay residential rates, the Finance Ministry says.

      However, the new rules have sent many confused land and property owners into a panic, particularly in Bangkok. They received a letter from local administrative organisations and district offices informing them of their property type ahead of the enforcement of the new tax legislation.

      To quell homeowners' unease, the Finance Ministry and related agencies have agreed to group buy-to-let homes and condominiums under residential use, which is charged below the rate for commercial use under the new land and building tax to be implemented in August next year, according to Lavaron Sangsnit, director-general of the Fiscal Policy Office.

      This is because the authorities believe these properties are rented for long-term residential purposes. But homestay operators and home-sharing hosts like Airbnb will reap no windfall from the Finance Ministry's decision to apply the land and building tax rate for residential purposes to buy-to-let homes.

      Homestay and home-sharing activities are considered short-term rentals for commercial use, so these operators will be subjected to the commercial rate, Mr Lavaron said.

      Daily rentals are deemed for commercial purposes, while long-term rentals are classed as residential use, he said, adding the various durations of rental periods will be spelled out later. According to the new tax structure, land and buildings used for residences with appraisal prices of up to 50 million baht are tax-exempt for principal homes, while those valued at more than 50-75 million baht are taxed at 0.03% of appraisal prices, more than 75-100 million baht are taxed at 0.05%, and more than 100 million baht at 0.1%.

      Those who only own houses, not land, qualify for a tax exemption for the first 10 million baht of their houses' appraisal prices.

      If owners have more than one home, the second and subsequent residences are subject to a 0.02% tax for those with an appraisal price of up to 50 million baht or 200 baht for 1 million baht worth of appraisal price, and the same tax rate as principal homes is applied to those with appraisal prices above 50 million baht. In comparison, owners of commercial use property will be subject to a 0.3% tax rate for up to 50 million baht, or 3,000 baht for 1 million baht worth of appraised price.

      Mr Lavaron said the land and building tax's objectives are to simplify tax collection and reduce local administrative organisations' discretion.

      A buy-to-let home whose physical appearance is that of a residence will be regarded as for living use even if rented to others, he said.

      Meanwhile, permanent secretary for finance Prasong Poontaneat said the Finance Ministry and the Interior Ministry will publicly announce guidance for the land and building tax in cases of buy-to-let homes to reduce confusion.

      Mr Prasong said land owners who lease their land for agricultural purposes should be subject to tax under agriculture activity rates, not commercial rates. For vacant high-value land plots authorities will issue guidance to determine how land owners can grow trees and is to be classified as agricultural land which is subject to low tax rate.: https://www.bangkokpost.com/business/1824284#cxrecs_s
      Keep your friends close and your enemies closer

      Comment


      • #4
        Originally posted by Somchai Boonporn View Post
        Yet, how does all this concern you?

        *bump*
        God, the panic within the Dems, MSM, and left must be horrifying...realizing that Joe is really the best they've got.

        Comment


        • #5
          Originally posted by Somchai Boonporn View Post
          Yet, how does all this concern you?

          There's a lot of OCP* going around...



















          *Obsessive Compulsive Posting
          Majestically enthroned amid the vulgar herd

          Comment


          • #6
            Originally posted by harrymsmarkle View Post
            There's a lot of OCP* going around...














            *Obsessive Compulsive Posting
            Between online searches for strip clubs open on Christmas...
            God, the panic within the Dems, MSM, and left must be horrifying...realizing that Joe is really the best they've got.

            Comment


            • #7
              Originally posted by Boon Mee View Post
              Between online searches for strip clubs open on Christmas...
              Remember where you are: everything's open all the time...
              Majestically enthroned amid the vulgar herd

              Comment


              • #8
                Originally posted by harrymsmarkle View Post
                Remember where you are: everything's open all the time...
                Heh...my karoke place doesn't do holidays.
                God, the panic within the Dems, MSM, and left must be horrifying...realizing that Joe is really the best they've got.

                Comment


                • #9
                  Gonna pay with a truckload of overripe mangoes?

                  Originally posted by Ergenburgensmurgen;n186588
                  What are you talking about, I don't post on Teakdoor.


                  https://thailandchatter.com/core/ima...ies/giggle.gif

                  Comment


                  • #10
                    Originally posted by serrollt View Post
                    Gonna pay with a truckload of overripe mangoes?

                    My Obator (who collects taxes 'round here) will take just about anything. See a bumper crop of Teen Pet Nam fruit coming up...
                    God, the panic within the Dems, MSM, and left must be horrifying...realizing that Joe is really the best they've got.

                    Comment

                    Valentina Jewels gets pounded like a btich dog ?????? ??????? ????????? ???????? ???? diferentes tipos de bajinas
                    antalya escort bayan
                    Working...
                    X