New Land and Building Tax Act in Thailand

[RBOP]

Ok, heard from an acquaintance they got a letter from Land department saying they have to pay this new property tax on their condominium. Anyone else get a letter?  I thought this new tax scheme got cancelled? Maybe not. 

[Pedrogaz]

I got a bill for 30,000 baht for constructing out-buildings without permission, then seeking to change the name on a deed which caused the property to be surveyed.

[natway09]

Yes. new land & building tax announced last week. Comes into affect 1 January.

Gotta pay for our illustrious leaders high speed train folly somehow

[Titan1962]

Yes we just received ours in Chiang Mai today,wife has to confirm all the details are correct relating to the property. Then return the form and they will advise on the cost.

i suppose they have to pay for the tanks and subs somehow.

[RBOP]

Someone from my building told me this tax scheme is postponed to March 2020. Can anyone confirm? 

[Chazar]

On 12/11/2019 at 10:41 PM, RBOP said:

Someone from my building told me this tax scheme is postponed to March 2020. Can anyone confirm? 

i heard  August 2020

[Chazar]

On 12/11/2019 at 6:52 PM, Titan1962 said:

Yes we just received ours in Chiang Mai today,wife has to confirm all the details are correct relating to the property. Then return the form and they will advise on the cost.

i suppose they have to pay for the tanks and subs somehow.

are  you in a rural location or  in the city

[Chazar]

On 12/11/2019 at 1:54 PM, Pedrogaz said:

I got a bill for 30,000 baht for constructing out-buildings without permission, then seeking to change the name on a deed which caused the property to be surveyed.

Where was that? as  when I  built 3km form the main road needed  no  plans or  anything

[Titan1962]

24 minutes ago, Chazar said:

are  you in a rural location or  in the city

We are in in chang Phueak  near the government office.

[DaRoadrunner]

Anyone know how much its going to cost?

[Chazar]

10 hours ago, DaRoadrunner said:

Anyone know how much its going to cost?

IF you have your name in a yellow  book............nothing for one residence below 10million although also read up to 50  million..............its as  clear as mud but thats the wife checking BKK ..as usual it seems there is mass confusion over these rules all over Thailand many  places outside BKK  no nothing about it.

[cmsally]

The actual tax has not been delayed but the collection has been delayed until Aug 2020. Normally the collection would be March/April 2020. If it is a primary private residence with title holders name on the House registration then under  50 million is tax exempt. Commercial use seems to be a little murkier and I would imagine that is where they will be looking to make gains.

In my opinion this could be the straw that breaks the camels back when things are looking grim already.

[RBOP]

11 hours ago, Chazar said:

i heard  August 2020

Yes, just announced.

[ICELANDMAN]

29 minutes ago, Chazar said:

IF you have your name in a yellow  book............nothing for one residence below 10million although also read up to 50  million..............

 Farang with name a yellow book and living at home below 10 million have to pay soon or later, same privilege have farang for ticket hospital and parkland.....

[SantiSuk]

3 hours ago, ICELANDMAN said:

 Farang with name a yellow book and living at home below 10 million have to pay soon or later, same privilege have farang for ticket hospital and parkland.....

'Falangs are bound to be called on to pay', seems to be the only basis for your analysis, so I don't think this provides any useful guidance for ThaiV members to act on. There is a useful article in one of the English language newspapers that I am not permitted to quote, so hopefully 'The Nation' will publish something similar that will be posted for our edification in due course.

 

What I learnt from said article can be summarised in terms of my own and close family property interests as follows:

 

I live permanently in a house the construction of which I paid for 12 years ago and which is owned by my wife of 12 years (let's not dive down into the red-herring of whether falang should do this please!). She and our daughters are in the blue book; I am not (obviously, since I can't be) and I do not have a yellow book. It cost about 8 million baht to construct and the land cost 0.3 million. Land and buildings used for the property owner's primary residence are assessed to the new property tax regime based on an appraisal value which seemingly will be provided by government (not sure which agency/branch). My wife has not received any communication from anyone about this yet, but it seems unlikely she will need to pay any tax as properties appraised at less than 50 million baht are exempt from property tax. This is the major exemption within the new property taxation system and is expected to remove a very high proportion of residential property owners from tax liabilities. It should however be emphasised that it only applies to one property a person may own and which they deem to be their primary residence and any additional properties one owns would be liable to tax without this sub-50m tax exemption.

 

If I did have a yellow book I would not expect to have to pay the tax since AFAIK a yellow book entry does not imply any ownership rights. I'm not in the ICELANDMAN camp of expecting the Thai government to act with gross unfairness towards falang on this matter.

 

The sub-50m primary residence tax exemption would not apply to commercial property either, so if I also owned a property that I rented out then I would expect to pay property tax on the appraised value of that property.

 

The tax rates - applicable to all types of property - are 0.02% (per annum) on the appraised value for properties appraised at less than 50 million baht (with the exemption for primary residences); 0.03% for properties appraised in the band 50 to 75 million; 0.05% on 75 to 100 million; 0.1% on properties over 100 million.

 

I do own a condo unit which I paid some 5 million for. We and family use it as a weekend/holiday retreat from the deep countryside of Isaan to the bright lights of Bangkok. I have not had any communication from government in relation to its appraisal value yet. I doubt that I would legitimately be able to argue it is my primary residence but that doesn't fuss me much. Let's say it is now worth 6 million baht. Annual tax would be at 0.02%, so 6,000,000 x 0.0002 = 1,200 baht. Hardly worth getting exercised about.

 

My wife owns some farmland. Farmland is apparently to be exempted from property tax for the first 3 years and then will be taxable at the above rates without exemptions. I do not know whether different parcels of land are to be taxed individually or as a total value (which would only be a relevant question anyway if the total appraisal values exceeds 50 million baht).

 

My knowledge is deficient on issues. I don't know whether the taxpayer sits tight and waits for the relevant government authority to contact them. There is some mention in what I read of a registration process that has to be completed by 2019 year end. It seems unlikely to be a hard and fast deadline since there has AFAIK been very little exposure to the public about such a process. The tax 'filing period (deadline) has been extended form April 2020 to August 2020. I don't know whether that is also the payment deadline. The implication is that in future years filing and payment will be every end of April.

 

So that's the limit of my knowledge. E&OE (errors and omissions excluded). Apologies if I have missed some more learned analysis posted elsewhere - I did a Google search to see if there was. Don't blow me up if I got something wrong - just trying to help here! Clearly no-one should take any significant taxation action based only or mainly on what I have written. I would be particularly interested to know if someone knows more about the timing issues, particularly if we the taxpayers are required to take specific actions within the next few weeks.

[SantiSuk]

Woops. Should have read down the listing of topics rather than relying on Google. There are other very relevant posts that I will now read. Hopefully there is something of merit in what I posted since some of the other material seems to be more relevant to those with commercial rather than residential interests.