Land & Building Tax in Thailand

Land and Building Tax in Thailand

The rather outdated House and Land Tax Act B.E. 2475 promulgated in the 1930s has been recently replaced by a new Land and Building Tax Act B.E. 2562, which has come into force on 13 March 2019. The tax collection for land and buildings under this Act will come into effect on 1 January 2020 and is to be paid in April each year.

See Unofficial translation of New Land and Building Tax Act B.E. 2562 in Thailand here

Taxpayer  

Any individual or legal entity who owns, possesses, or has usage rights of land or buildings, including condominium units, on 1 January of any year is responsible for paying land and building tax to the local administrative authorities for that year.

Tax base

The value of the land and buildings will be appraised by the government, and the assessed price will serve as the basis for calculation of the property tax.

Tax rate The land and building tax rates shall be specified in a Royal Decree, but shall not exceed the maximum tax rates, which are as follows:

Purpose of use of land and buildingsMaximum tax rate
Agricultural use0.15%
Residential use0.3%
Other1.2%
Vacant or unused1.2%

For land or buildings which are vacant or unused for more than 3 consecutive years, the tax rates will increase by 0.3% every three years, but will not exceed 3%. 

For the first 2 years of the collection of tax on land and buildings under this Act, the following rates shall be used:

Tax calculation

The tax payable shall be calculated from the net tax base after deducting the tax-exempt value, multiplied by the applicable tax rate.

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