2020 Land tax.. What do I need to know

[LivinLOS]

Heard that as of Jan a new land tax is coming and that vacant land can be up to 3% per annum.. Thats a painful amount annually. 

 

I am told that if its agricultural land, its 0.15%.. So what steps do I need to take to ensure that it is the latter and not the former.. What can I plant thats zero maintenance and will offer a workaround until I develop the land. 

[Chazar]

also starting very  soon on condos  1st  condo is  no charge  a year 2nd if  family  staying there   a  bit  more 200baht per  1  million of  value  then 3rd onwards is 3000 baht per  million of land offices  price already at a time with oversupply and  falling rents

My land 15  rai  full  of  pineapples but its requires maintenance and 2  staff so  no easy  option although 0.15 wont hurt  much the condo one is expensive.

They sure  know how to cripple an already suffering market, hopefully  it  will be their downfall like the Uk  polltax

[LivinLOS]

Would have thought this was bigger news and discussion.. 

 

3% of land value is not a small sum.. 

[Chazar]

13 hours ago, LivinLOS said:

Would have thought this was bigger news and discussion.. 

 

3% of land value is not a small sum.. 

should be for people who own more than 2  condos  also................but almost no mention on the forums?

[Chazar]

Mangos   might be the best option, clear the land plant some trees  walk away, need to do it in the rainy season which has almost ended

[LivinLOS]

https://www.bdo.co.th/en-gb/insights/tax-updates/new-property-tax-law-in-thailand

 

After numerous attempts over the years to reshape the way property tax is imposed in Thailand, new property tax legislation has finally entered into law in Thailand.

The new law replaces the current House and Land Tax Act and the Local Development Tax Act and aims to encourage the productive use of land and improve tax collections. Taxes will commence to be collected under the new law from 1 January 2020.

Taxable properties

The tax will apply to land as well as condominiums, apartments and buildings, including houses, or any construction which can be used as a residence or for storage, industrial or commercial purposes.

People will now potentially be liable to tax on their homes, although a generous tax exemption threshold will apply.

The tax will be imposed on property held at 1 January of each tax year.

Tax base

Tax is currently imposed under the House and Land Tax Act on a property’s annual rental value at the rate of 12.5%.

Under the new law, the tax base shall be the appraised value of the property as determined for the purpose of collecting registration fees under the Land Code. In the case where there is no appraised value, the tax base will be calculated in accordance with the criteria, method and conditions as prescribed in Ministerial Regulations.

Tax rates

The following ceiling rates have been introduced for four categories of property:

   (1) Properties used for agricultural purposes:                          0.15%

   (2) Properties used for residential purposes:                          0.30%

   (3) Properties used for purposes other than (1) and (2):         1.20%

   (4) Vacant/non-utilised properties*:                                          1.20%

*If the land or building is left vacant or undeveloped for three consecutive years, the rate will increase by 0.3% every 3 years subject to a cap of 3%.

Tax rates have been announced for 2020 and 2021. For example, for a condominium unit owned by an individual that uses the unit as their place of residence and their name appears in the house registration book, the tax rates are:

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 bookon 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): Property-tax-guide-in-Thai-Fiscal-Policy-Office.pdf

[prism]

I've seen banana trees planted in neat rows to make land appear to be for agricultural use. Zero maintenance. 

[Peterw42]

11 minutes ago, prism said:

I've seen banana trees planted in neat rows to make land appear to be for agricultural use. Zero maintenance. 

How do you know thats not just a farm growing bananas ?

[justin case]

18 hours ago, Chazar said:

My land 15  rai  full  of  pineapples

you have thai nationality, otherwise you own NOTHING

[bkk6060]

HAHA.

I bet very very little will pay this.

Kind of like the maintanance fees at a condo.

Not paying for years nothing is done..

[Crossy]

If I'm reading this right the exemption thresholds are pretty high.

 

50 million for agricultural land and owner-occupied houses, 10 million for condos and rented homes.

 

I suspect most smallholders and homeowners will be exempt anyway along with those with modest condos.

 

A 40 million Baht condo would attract about 8000 Baht per annum tax.

 

Our home and land doesn't even make the owner-occupier threshold.

 

[LivinLOS]

45 minutes ago, Crossy said:

If I'm reading this right the exemption thresholds are pretty high.

 

50 million for agricultural land and owner-occupied houses, 10 million for condos and rented homes.

 

I suspect most smallholders and homeowners will be exempt anyway along with those with modest condos.

 

A 40 million Baht condo would attract about 8000 Baht per annum tax.

 

Our home and land doesn't even make the owner-occupier threshold.

 

The issue is there is apparently no exemption for vacant unused land.. It seems to be 1.2% increasing 0.3% to a cap of 3%. Land values have been going crazy around us, I am seeing plots asking > 5 mil a rai, I know the government rates will be much lower but unsure what they currently are at. Even at 2 mil a rai declared value that would result in a tax bill. on our 5 plus rai, of 120k per annum rising 30k a year to 300k per annum !! 

So it needs to be made into used / agricultural or developed. 

[Crossy]

1 minute ago, LivinLOS said:

The issue is there is apparently no exemption for vacant unused land..

 

Yeah, it actually seems designed to punish those who don't use their land. I suspect that's actually the intent.

[LivinLOS]

While it may well be, I am surprised this hasnt had more news.. A > 100k bill for a plot of land I am going to develop later would have been a poor surprise. 

[GreasyFingers]

The wife has just over 2 rai but it is subdivided into 5 lots with the house on one. Will be interesting as to how they treat the vacant lots. Hopefully the fruit trees and vegetables will classify them as agricultural land even though they are not an economic proposition.

[statman78]

Thanks for posting this.  I was not aware of this.  We have several properties we rent out along with a small farm.  Time to do some more research.

[Chazar]

3 hours ago, justin case said:

you have thai nationality, otherwise you own NOTHING

golly  jee whizz omg !!

[Chazar]

5 hours ago, LivinLOS said:

https://www.bdo.co.th/en-gb/insights/tax-updates/new-property-tax-law-in-thailand

 

After numerous attempts over the years to reshape the way property tax is imposed in Thailand, new property tax legislation has finally entered into law in Thailand.

The new law replaces the current House and Land Tax Act and the Local Development Tax Act and aims to encourage the productive use of land and improve tax collections. Taxes will commence to be collected under the new law from 1 January 2020.

Taxable properties

The tax will apply to land as well as condominiums, apartments and buildings, including houses, or any construction which can be used as a residence or for storage, industrial or commercial purposes.

People will now potentially be liable to tax on their homes, although a generous tax exemption threshold will apply.

The tax will be imposed on property held at 1 January of each tax year.

Tax base

Tax is currently imposed under the House and Land Tax Act on a property’s annual rental value at the rate of 12.5%.

Under the new law, the tax base shall be the appraised value of the property as determined for the purpose of collecting registration fees under the Land Code. In the case where there is no appraised value, the tax base will be calculated in accordance with the criteria, method and conditions as prescribed in Ministerial Regulations.

Tax rates

The following ceiling rates have been introduced for four categories of property:

   (1) Properties used for agricultural purposes:                          0.15%

   (2) Properties used for residential purposes:                          0.30%

   (3) Properties used for purposes other than (1) and (2):         1.20%

   (4) Vacant/non-utilised properties*:                                          1.20%

*If the land or building is left vacant or undeveloped for three consecutive years, the rate will increase by 0.3% every 3 years subject to a cap of 3%.

Tax rates have been announced for 2020 and 2021. For example, for a condominium unit owned by an individual that uses the unit as their place of residence and their name appears in the house registration book, the tax rates are:

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 bookon 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): Property-tax-guide-in-Thai-Fiscal-Policy-Office.pdf

need  to add in Johnny Foreigner  will pay  more I believe on the condos

[Airalee]

7 hours ago, LivinLOS said:

https://www.bdo.co.th/en-gb/insights/tax-updates/new-property-tax-law-in-thailand

 

After numerous attempts over the years to reshape the way property tax is imposed in Thailand, new property tax legislation has finally entered into law in Thailand.

The new law replaces the current House and Land Tax Act and the Local Development Tax Act and aims to encourage the productive use of land and improve tax collections. Taxes will commence to be collected under the new law from 1 January 2020.

Taxable properties

The tax will apply to land as well as condominiums, apartments and buildings, including houses, or any construction which can be used as a residence or for storage, industrial or commercial purposes.

People will now potentially be liable to tax on their homes, although a generous tax exemption threshold will apply.

The tax will be imposed on property held at 1 January of each tax year.

Tax base

Tax is currently imposed under the House and Land Tax Act on a property’s annual rental value at the rate of 12.5%.

Under the new law, the tax base shall be the appraised value of the property as determined for the purpose of collecting registration fees under the Land Code. In the case where there is no appraised value, the tax base will be calculated in accordance with the criteria, method and conditions as prescribed in Ministerial Regulations.

Tax rates

The following ceiling rates have been introduced for four categories of property:

   (1) Properties used for agricultural purposes:                          0.15%

   (2) Properties used for residential purposes:                          0.30%

   (3) Properties used for purposes other than (1) and (2):         1.20%

   (4) Vacant/non-utilised properties*:                                          1.20%

*If the land or building is left vacant or undeveloped for three consecutive years, the rate will increase by 0.3% every 3 years subject to a cap of 3%.

Tax rates have been announced for 2020 and 2021. For example, for a condominium unit owned by an individual that uses the unit as their place of residence and their name appears in the house registration book, the tax rates are:

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 bookon 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): Property-tax-guide-in-Thai-Fiscal-Policy-Office.pdf

Thanks for posting this.  Somehow, I knew this was coming sooner or later.

 

So...just to make sure I understand what I’m reading...a landlord who is renting out multiple units (not including primary personal residence or second residence if also have family living there) is liable for a maximum of 1.2% of appraised value (sometime in the future as it appears there are already lower rates in place for the next couple years) and if the owner of the condo keeps it vacant for more than 3 years, the 1.2% cap actually increases every 3 years by 0.3% up to a max of 3% of appraised value.

 

So...a landlord renting a 5,000,000 baht condo would have (potential future) taxes of ฿60,000 per year in property tax based on the 1.2% rate.  Will the landlord also be liable for the income tax that I hear about (the 12.5% of annual rent I read above)?

[Estrada]

There is a housing plot opposite my house worth over B10 Million, so today they started clearing the land to plant Banana trees. The people in our community will look after the trees and for free providing we can keep the bananas, so the land owner only has to pay 0.15% tax instead of 3%.

[ExpatOilWorker]

I got what appears to be a real-estate tax of 72 baht for my condo, which probably have a registered value of about 4 million baht.

First time I got this bill, so something new is happening.

Edited December 7, 2019 by ExpatOilWorker

[NightSky]

20 minutes ago, ExpatOilWorker said:

I got what appears to be a real-estate tax of 72 baht for my condo, which probably have a registered value of about 4 million baht.

First time I got this bill, so something new is happening.

Someone else posted the threshold is 10 million baht so according to this your condo is exempt at 4 million baht.

 

Are you sure its not the freeholder/management company of the building billing you and they in turn were billed by the government if they own the land as such.

 

In any case the tax doesn't begin until 2020 so your bill is likely something else.

Edited December 7, 2019 by NightSky

[snowgard]

7 hours ago, GreasyFingers said:

The wife has just over 2 rai but it is subdivided into 5 lots with the house on one. Will be interesting as to how they treat the vacant lots. Hopefully the fruit trees and vegetables will classify them as agricultural land even though they are not an economic proposition.

You can search the land on this map and doubleklick on it. Then you will get detailed infos for this lot.

http://dolwms.dol.go.th/tvwebp/

 

And you can translate it with google translate.

Edited December 7, 2019 by snowgard

[alacrity]

Currently I haven't seen the data referring to the valuations that will be applied. Only the concessions. Neither have I seen if the allowances are attributable to a single ownership or a totality.

 

Last week we were visited by a group from the local Tessa Bahn, armed with a 50m tape to survey 150 rai with multiple land documentations.  They indicated that the assessment would be a totality of similar registered property within their jurisdiction.  Maybe this will be applied throughout.

 

I wonder which option would be best for some land owners. Pay the tax or register the usage.

Edited December 7, 2019 by alacrity
little o

[GreasyFingers]

13 hours ago, snowgard said:

You can search the land on this map and doubleklick on it. Then you will get detailed infos for this lot.

http://dolwms.dol.go.th/tvwebp/

 

And you can translate it with google translate.

Yes, I already have the Land Office map link. Had not thought of translating it with Google, thanks.

[OKF]

I got some paper all in Thai from some government body refering to my BKK Condo that seems to relate to it. I checked with google photo translater but to difficult with that. I do not know what that paper is about exactly and do not know whether I need to act on that. However the english description by BDO talk about ppl where the name is in the hosebook. I am farang so canot put name in the house book. How is thios ganno be treated? Dual tier as so often in T? Also where do I find the valuation of my condo that it is refferd to, however market valaue is well below the 40 mentioned

[ExpatOilWorker]

6 hours ago, OKF said:

I got some paper all in Thai from some government body refering to my BKK Condo that seems to relate to it. I checked with google photo translater but to difficult with that. I do not know what that paper is about exactly and do not know whether I need to act on that. However the english description by BDO talk about ppl where the name is in the hosebook. I am farang so canot put name in the house book. How is thios ganno be treated? Dual tier as so often in T? Also where do I find the valuation of my condo that it is refferd to, however market valaue is well below the 40 mentioned

This is probably the same letter I got. How much was the baht value in ur letter?

[DaRoadrunner]

Amazing, all these farang who claim to own land.

 

As for the new regs; - just another sign of the Thai Govt tightening the screw and turning this place into Singapore (SingaBore).

 

One of the pleasures of Thailand is not having to pay council tax as we do in the UK. How long before the Thais get this idea?

 

All the fun and freedom that made this a great place to live, is disappearing.

[ExpatOilWorker]

On 12/7/2019 at 6:49 AM, LivinLOS said:

https://www.bdo.co.th/en-gb/insights/tax-updates/new-property-tax-law-in-thailand

 

After numerous attempts over the years to reshape the way property tax is imposed in Thailand, new property tax legislation has finally entered into law in Thailand.

The new law replaces the current House and Land Tax Act and the Local Development Tax Act and aims to encourage the productive use of land and improve tax collections. Taxes will commence to be collected under the new law from 1 January 2020.

Taxable properties

The tax will apply to land as well as condominiums, apartments and buildings, including houses, or any construction which can be used as a residence or for storage, industrial or commercial purposes.

People will now potentially be liable to tax on their homes, although a generous tax exemption threshold will apply.

The tax will be imposed on property held at 1 January of each tax year.

Tax base

Tax is currently imposed under the House and Land Tax Act on a property’s annual rental value at the rate of 12.5%.

Under the new law, the tax base shall be the appraised value of the property as determined for the purpose of collecting registration fees under the Land Code. In the case where there is no appraised value, the tax base will be calculated in accordance with the criteria, method and conditions as prescribed in Ministerial Regulations.

Tax rates

The following ceiling rates have been introduced for four categories of property:

   (1) Properties used for agricultural purposes:                          0.15%

   (2) Properties used for residential purposes:                          0.30%

   (3) Properties used for purposes other than (1) and (2):         1.20%

   (4) Vacant/non-utilised properties*:                                          1.20%

*If the land or building is left vacant or undeveloped for three consecutive years, the rate will increase by 0.3% every 3 years subject to a cap of 3%.

Tax rates have been announced for 2020 and 2021. For example, for a condominium unit owned by an individual that uses the unit as their place of residence and their name appears in the house registration book, the tax rates are:

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 bookon 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): Property-tax-guide-in-Thai-Fiscal-Policy-Office.pdf

The letter that is being sent to condo owners at the moment is just stating the m2 area and the classification. To calculate your tax, you need to look up the appraisal value from the below site.

 

http://property.treasury.go.th/pvmwebsite

 

My tax is then = m2 x appraisal value x 0.3% (I don't live in the unit)

 

The site is only in Thai, but it is possible to navigate. As an example is the appraisal value for Sukhumvit Suite.

 

http://property.treasury.go.th/pvmwebsite/search_data/r_condo_price.asp?nrg_n=261/2562&cw=10&br=10020000

[Chazar]

On 12/8/2019 at 7:22 PM, DaRoadrunner said:

Amazing, all these farang who claim to own land

more  amazing,  the  people  who  drag this  tired  old  cliched  nonsense  up