Opera Consulting: The New Land and Building Tax Act B.E. 2562 (2019)

 

The New Land and Building Tax Act B.E. 2562 (2019)

 

The New Land and Building Tax Act B.E. 2562 (2019), adopted by the legislative assembly on the 16th of November,2018, in effect since the March, 13th, 2019 will come progressively into force with a transition period Rate between the 1st of January, 2020 and 2022 and will respond to three main objectives:

  • Decrease the tax burden on tax payers
  • Encourage land utilization to help enhancing the Thai economy
  • Improve the effectiveness of tax collection

It will replace and revoke the current House and Land tax B.E (1932) and the land development Tax B.E 2508 (1965).

The local Subdistrict Administrative Organization (“SAO”) will newly be in charge onward to collect the tax. Individuals and juristic persons, owning a land or a building, including condominium unit will be intitled to pay the land and building tax

The tax rates will fluctuate regarding the use made of the land and its value. It will replace the actual rate: 12.5% of appraisal value of Asset.

Individuals who own their own residential land worth less than 50 million THB and used as a primary residence will be exempted from tax while unused land are particularly targeted by the new act:

Purpose of the used

Value of the Property

(million THB)

Tax rate

Ceiling Tax Rate

Agricultural*

 
  • 0-75
  • 75-100
  • 100-500
  • 500- 1,000
  • Above 1,000
 
 
  • 0,01%
  • 0.03%
  • 0.05%
  • 0.07%
  • 0.1%
 
 
  • 0.15%
 

residential

 
  • 0- 50
  • 50- 75
  • 75-100
  • Above 100
 
 
  • 0.02%
  • 0.03%
  • 0.05%
  • 0.1%
 
 
  • 0.30%
 

Commercial, industrial

 
  • 0-50
  • 50-200
  • 200- 1,000
  • 1,000- 5,000
  • Above 5,000
 
 
  • 0.3%
  • 0.4%
  • 0.5%
  • 0.6%
  • 0.7%
 
 
  • 1.20%
 

Unused / vacant

 
  • 0- 50
  • 50- 200
  • 200- 1,000
  • 1,000- 5,000
  • Above 5,000
 
 
  • 0.3%
  • 0.4%
  • 0.5%
  • 0.6%
  • 0.7%
 
 
  • 1.20%
 

 

* From 2020 to 2022, Individual owners of land used for agricultural purposes will be entitled to a three-year tax exemption.

The New Land and Building tax Act B.E. 2562 provide several exemptions:

  • Agricultural: Tax base exemption: Less than 50 Million THB
  • Residential: Owner of a Land and Building:  Less than 50 million THB
  • Residential: Owner of Building: Less than 10 million THB

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