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Land and building tax collection postponed to Aug 2020


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Land and building tax collection postponed to Aug 2020

Praphorn Praphornkul

 

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BANGKOK(NNT) - After the government approved new regulations under the Land and Building Tax Act, due to take effect on January 1, the Ministry of the Interior has announced that actual tax collection will commence in August 2020, rather than the previous schedule of April 2020.

 

The Permanent Secretary for the Interior Ministry, Chatchai Promlert, has notified provincial governors nationwide about the new regulations under the Land and Building Tax Act. With eight organic laws still in the drafting process, local administrative organizations will not be able to perform tax collection duties according to the new regulations. The Interior Minister, Gen. Anupong Paojinda, agreed to delay the land and building tax collection to August next year.

 

The law covers four types of taxable land and buildings, including agricultural, residential, commercial and vacant lands. The calculation of tax rates varies by location and other factors.

 

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 who own houses, but not land, qualify for a tax exemption on the first 10 million baht of their houses’ appraisal prices. Owners of condominium units with appraisal prices of up to 10 million baht qualify for a tax exemption if they do not rent the unit out. The tax rate on land and buildings used for commercial purposes is 0.3%, or 3,000 baht for every 1 million baht.

 

For ordinary citizens, agricultural land will be tax-exempt in the first three years. Starting from the fourth year, land used for agricultural purposes with appraisal prices of up to 50 million baht will still be tax-exempt. However, agricultural land with appraisal prices of 51 million to 75 million baht will be taxed at 0.01%, or 100 baht in every million. Agricultural land with appraisal prices of over 75 million to 100 million baht will be taxed at 0.03%, or 300 baht for every million.

 

The tax rate for vacant land with an appraisal value of up to 50 million baht is 0.3%, or 3,000 baht for every million. The rate is to double every three years. However, this does not apply to land left vacant or unused due to disasters.

 

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-- © Copyright NNT 2019-12-14
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The only good thing about this is that there is a tax. The tax is menial for many wealthy. It seems to have screwy wording. Is a 40 million baht personal home exempt or does that home have to have land? Is a farmer who owns 40 million baht of land exempt? Seems like a rich farmer does well. What does 'ordinary citizen' mean? Does this include the land of the royal family too? It's another piece of failed law in my view. No doubt loaded with loopholes for the magic tricks of the privileged.

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6 hours ago, rooster59 said:

After the government approved new regulations under the Land and Building Tax Act, due to take effect on January 1, the Ministry of the Interior has announced that actual tax collection will commence in August 2020, rather than the previous schedule of April 2020.

Passed in November 2018 by Prayut's NLA, set to commence January 1, 2020.

Then delayed to April 2020 because of delay to finalize the Parliament MPs and PM.

Then delayed to August 2020.

What are the odds that it either be delayed again or amended.

I think the original commencement date was to expect a not-so pro-military elected government in February 2019 so as to be able to embroil it in a property tax controversy. But then Prayut decided he wanted to be "elected" the next PM. Now initiating a new tax is somewhat contrary to his economic stimulus policies. Tax cuts are the norm to economic stimulus.

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