Land & Buildings Tax 2020

[LuciusCornelius 18]

I received notice from admin at my condo complex on Friday August 19th that I should contact Pattaya city hall and check if I have an outstanding tax bill.  I have received no bill, but they are advising co-owners to call and confirm that there is no land and buildings tax due.  It seems few people have actually been receiving the invoices. The note also mentioned that there is a 90% discount applicable to this tax if paid before the end of August 2020. In the letter, admin say before the end of September, but I have heard August from other sources. The tax payment date was postponed from march due to the epidemic. 

 

I am wondering if anyone has experience of paying this tax and the sums involved.  I own two condos, which I use as vacation homes several times a year.  I do not reside there permanently.  I know the tax is based off of the appraised value of the units, but I have no information on how much that is.  I purchased 4 years ago and the sales prices were 4.5 million and 2.3 million respectively. 

 

Since I am not in Thailand (overseas buyer) and don't speak Thai, my only option seems to be to retain the services of an accountant or lawyer to handle this.  I am sure this will probably run me far more than the value of the tax payable.  However, i don't see what option I have. I don't want to get a penalty.

 

If anyone has any experience of dealing with paying this tax, any information about the likely amounts involved or suggestions about suitable (reasonably priced) accountants or lawyers who can reliably take care of this then I would really appreciate it.

 

Many thanks.

 

Original message from admin. 

 

Dear:    Co-owners  

Title:     Land and building tax payment for the year 2020 

            Notification of land and building tax for the year 2020, if any co-owners have not yet received a letter requesting a tax payment, please contact to Pattaya city hall from today until September 30, 2020, to receive a 90% discount of the amount to be paid. If you do not pay within the specified time will be charged a late fee by Pattaya city 

            Documents used to contact at the Revenue and Benefits Department, Pattaya City, Floor 1, Building 1 

            1. Copy of house registration 

            2. Copy of National ID Card / or Passport 

            3. A copy of the title deed front-back 

            For more information, please contact the Revenue and Benefits Department, Pattaya City from 9:00 a.m. to 4:00 p.m. Mon.-Fri. Telephone number (038) 253148 -149, Mobile Line ID: 0839749584. 

            Or you can call to request the amount to be paid and transfer payments as details as follows 

            Account name:            Pattaya City 

            Bank:                           Krung Thai Bank, South Pattaya Branch 

            Account Number:        221-6-02322-1 

            Account Type:             Current Account 

 

  

[champers 9,812]

Might you be liable to back tax (probably not discounted)?

[Leaver 5,495]

6 hours ago, LuciusCornelius said:

I don't want to get a penalty.

Seems like you already got the penalty.  

[aussiexpat 529]

What's land & building tax on a condo? I heard a rumour they were introducing a new tax this year but obviously can't receive it if sent by mail as not there.

 

Great, not allowed into Thailand but bring in a new tax while away and charge me penalty for not paying on time

[LuciusCornelius 18]

I am uncertain about backtaxes for the past several years.  I know that there was an older tax law, which was seldom collected and whcih this law was designed to replace and improve upon.  There could be liability under whatever the old provisions were, though from what Admin tell me that is unlikely.

 

The 2020 bill took effect on Jan 1st this year and was supposed to see collections made in March.  This was postponed to August due to the virus.  There is now a 90% discount on sums payable if paid prior to August 31st.  I am certain of those facts.

 

I have a quote from a lawyer of 1500 baht per property do deal with the process ( not including paying the tax) so i will likely go with that next week and report the outcome here.  From what I have have read on other forums the actual tax is 0.02% of property appraised value.  This is then further reduced by 90% due to the discount.  

 

I know someone in Bangkok who paid 240 baht total for a 2 bedroom in the city center. It is also a second property.  That unit easily exceeds the value of my two combined.  

[kinyara 515]

Yes you are looking at a few hundred baht for the actual payment based on what I was quoted and others I know have paid. I tried to settle it back when I got the original letter but they told me to come back in August. Something I need to settle this week. 

 

I would imagine a lot of owners only here for the high season will have outstandings given the timings and situation. May work out cheaper for you to sort it out when you can eventually get back in the country. 

[aussiexpat 529]

2 hours ago, LuciusCornelius said:

I have a quote from a lawyer of 1500 baht per property do deal with the process ( not including paying the tax) so i will likely go with that next week and report the outcome here.  From what I have have read on other forums the actual tax is 0.02% of property appraised value.  This is then further reduced by 90% due to the discount.  

Why would you pay a lawyer 1500 baht per condo when tax cost for your 2 condo would be only 136 baht after discount applied?

 

Even if you missed the discount date total tax would still only be 1360 baht for 2 condo's, much less than the lawyer fees.

 

Condo 1, 4.5 m baht value X 0.02% = 900 baht, less 90% discount = 90 baht tax payable

 

Condo 2, 2.3 m baht value X 0.02% = 460 baht, less 90% discount = 46 baht tax payable

 

Edited August 23, 2020 by aussiexpat

[Rimmer 10,780]

Wife paid the tax on the property last week, our payments in past years are all up to date so no previous tax to pay, she was also given a substantial discount on this current payment.

 

Friend less than half a mile away had never registered so of course never paid the yearly tax, he had to pay B57,000 in back tax and fines to when the house was built around ten years ago.

[LuciusCornelius 18]

8 hours ago, aussiexpat said:

Why would you pay a lawyer 1500 baht per condo when tax cost for your 2 condo would be only 136 baht after discount applied?

 

Even if you missed the discount date total tax would still only be 1360 baht for 2 condo's, much less than the lawyer fees.

 

Condo 1, 4.5 m baht value X 0.02% = 900 baht, less 90% discount = 90 baht tax payable

 

Condo 2, 2.3 m baht value X 0.02% = 460 baht, less 90% discount = 46 baht tax payable

 

Mainly because I want it off my mind.  It's not a great deal of money and I always try to conform to whatever mandated rules there are in terms of dealing with property overseas.  

I was already aware that being fined may well work out cheaper than paying up now.  However, I am not certain of that.  I do not know what the appraised value is.  In fact it is likely even less than the sales price, but I just don't know. 

 

I also want to establish liability for any backtaxes since the possibility was mentioned above.  

Edited August 23, 2020 by LuciusCornelius
typo

[LuciusCornelius 18]

7 hours ago, Rimmer said:

 

Friend less than half a mile away had never registered so of course never paid the yearly tax, he had to pay B57,000 in back tax and fines to when the house was built around ten years ago.

I have held the condos for only 4 years and they are in individual rather than Thai company names.  Houses are often owned in a corporate structure and subject to other tax rates I believe.  I sure hope this is the case anyway and i will not be facing a bill comparable to his.

 

Edited August 23, 2020 by LuciusCornelius
typo

[Beardog 419]

Wow we must be lucky in Bang Saray we never paid any tax or penalty just when we sell 3rd house so far & only paid what the going rate for turning a house tax. They threatened to charge tax for  land without a house a couple years back but nothing ever became of it. No onje around our are or the 3 areas here has ever had to pay penalties.They don't even collect the 25 baht a month for garbage removal. We just go in every 2 years & pay the bin.

[LuciusCornelius 18]

As an update, I received 3 further quotes from lawyers and accountants.

 

I went with the lowest priced one 1000 Baht per unit = 2000 Baht for me.  This accountant was recommended by a real estate brokerage. 

 

I also had two others at 6000 Baht and 10000 baht.  There were both from lawyers and the price is for two units.

 

I figure at 2K baht, I get peace of mind and the difference between the tax + penalty and what I will pay for the service (with 90% discount for early payment) has narrowed to acceptable levels.  I will pay a tad more for putting it to bed. 

 

[Guderian 5,139]

I went to Pattaya City Hall this afternoon to pay the annual property tax. What a joke, it was packed out with people. I got number 66 and they called number 25 soon afterwards. Ten minutes later they were still on number 25, this was going nowhere fast and would soon impinge upon my beer drinking time, which is not acceptable, so I left. I could just forget about it until next year and pay the 200 Baht fine, or get an agent to do it for me. The GF up in Laem Chabang is always keen to make a few Baht on the side and she's cheaper than an agent, lol, so she's going to come down and pay it for me on Wednesday. I thought the tax office in Jomtien was slow, but City Hall makes it look like a model of efficiency. Plus at least the tax people speak some English and have heard or air conditioning, developments that have clearly passed Pattaya City Hall by.

[newnative 5,584]

3 minutes ago, Guderian said:

I went to Pattaya City Hall this afternoon to pay the annual property tax. What a joke, it was packed out with people. I got number 66 and they called number 25 soon afterwards. Ten minutes later they were still on number 25, this was going nowhere fast and would soon impinge upon my beer drinking time, which is not acceptable, so I left. I could just forget about it until next year and pay the 200 Baht fine, or get an agent to do it for me. The GF up in Laem Chabang is always keen to make a few Baht on the side and she's cheaper than an agent, lol, so she's going to come down and pay it for me on Wednesday. I thought the tax office in Jomtien was slow, but City Hall makes it look like a model of efficiency. Plus at least the tax people speak some English and have heard or air conditioning, developments that have clearly passed Pattaya City Hall by.

    We paid ours this morning and you are right.  It was a disorganized joke.  Pattaya's City Hall must be the worst in the nation for a city of its size.  What a total disgrace.  Ugly, a very poorly designed maze to negotiate, dirty, run down, messy, long staircases, some with no hand rails, everywhere you look but no elevators or escalators in sight, and let's not even talk about the horrible, way too small parking garage.  But, despite ALL that, at least for frigging sake AIR CONDITION the hot mess!

[LuciusCornelius 18]

Yes, city hall was a zoo but the accountant battled through it and got the tax paid.  Oddly, 198 baht total in tax, which at least was expressed to me as 99 baht per unit.  Obviously, I would anticipate different tax levels for each of them as one is a 1 bedroom and the other a 2 bedroom.  They certainly have different purchase prices.  Anyway, receipts have been obtained and I will get scans of those tomorrow.  I am interested to learn what the appraisal values for the units are.

 

No backtaxes were demanded or even mentioned.

 

A weight off my mind.