New property tax 2020

[skraach]

I have two adjoining properties in a residential area, one with a house on it, the other is vacant. There is a continuous fence around the outer perimeter and no fence in between the two plots (it looks like one piece of land). Under the new property tax, the primary residence is exempt, but vacant land is taxed. Can anyone advise whether the adjacent plot will be tax exempt because it is connected to the primary residence with a fence around it?

 

 

 

[macahoom]

 

Something tells me it's nothing to do with fences and more likely to do with the number of chanotes.

 

One chanote: no tax. Two chanotes: tax on the vacant plot.

 

Just a guess, of course.

 

 

[cmsally]

I know if there is a continuous perimeter fence and multiple dwellings (ie 2 tabien bahns) it counts as one ( I already asked).

On another dwelling I have 2 land titles and it is counted as 2. Which actually works well for me as one is business and one private (continuous perimeter). So I am inclined to say it is 2 but it is possible as the unused piece is garden of the first it is OK.

The reason I say this is : I know of a number of places where a "public waterway" ,which in some cases is nothing more than an underground pipe or small creek , has caused the supposedly one piece of land to be actually 2 chanots (as you cannot own the piece of land taken by the waterway). The best thing to do would be to ask at your local Tesabahn office that deals with the tax.

[smutcakes]

I would not worry to much by all accounts the tax change has been delayed as they have not completed the assessments and no one has a clue about all the grey areas in the law. (Possibly by intention)

[ThomasThBKK]

4 hours ago, smutcakes said:

I would not worry to much by all accounts the tax change has been delayed as they have not completed the assessments and no one has a clue about all the grey areas in the law. (Possibly by intention)

 

The agriculture loophole for example -.- 

 

they should just get rid of this nonense, and instead make sure that people pay their proper income taxes on rentals. 

[wombat]

On 11/24/2019 at 8:34 AM, smutcakes said:

I would not worry to much by all accounts the tax change has been delayed as they have not completed the assessments and no one has a clue about all the grey areas in the law. (Possibly by intention)

grey areas, like the flood of vacant condo's that would hit the market if the American property tax model was introduced ?

[smutcakes]

30 minutes ago, wombat said:

grey areas, like the flood of vacant condo's that would hit the market if the American property tax model was introduced ?

No. Why would there be a flood of condos. 1st condos are exempt and 2nd are like 0.02% of the assessed value per annum. So on a 5 mill condo it is your 2nd that would be 10,000 thb per annum. Not sure why that would cause a flood? Can you explain what i am missing?

[chilly07]

We have a bungalow on 3 registered plots but only one address and the tax office counts it as 1 property. By the way land tax has always existed.

[GreasyFingers]

On 11/24/2019 at 8:34 AM, smutcakes said:

I would not worry to much by all accounts the tax change has been delayed as they have not completed the assessments and no one has a clue about all the grey areas in the law. (Possibly by intention)

Hope you are right. We have 1 house but 3 contiguous lots plus 2 adjacent (across a road the only serves one other property). Have been wondering about whether land tax would apply.

[zeekgarcia]

Does anyone have a link to this new property tax in the Thai language?

[Monomial]

How this is taxed will depend entirely on your land office.

 

We have a house on 1 rai of land, and the local land office tried to say that they would only count 100 sq. wah as residential property and wanted to tax the remaining 300 wah as vacant land. My wife balked, and it wound up in a battle of wills. They tried compromising on 200 wah, but my wife demanded if they didn't believe that a house could sit on an entire rai of land to come out, investigate and file an official report that she would challenge in court.

 

The land office seems to have backed down for the moment, but when money is involved, don't expect anything to be straightforward. If you have a large property, you can bet that someone, sometime is going to get clever and try and say that your whole property is not used for a primary residence.  At that point, you will need to make a decision on whether or not you want to try and fight.

 

This is ultimately an individual decision by the tax assessor. Anything can happen. Just be prepared.

 

[LivinLOS]

On 11/24/2019 at 1:34 AM, smutcakes said:

I would not worry to much by all accounts the tax change has been delayed as they have not completed the assessments and no one has a clue about all the grey areas in the law. (Possibly by intention)

Is this actually announced as a delay ?? 

 

I have a plan to build thats 12 - 18 months out.. A 1 year delay would suit me perfectly.  

[LivinLOS]

On 12/8/2019 at 7:12 PM, Monomial said:

How this is taxed will depend entirely on your land office.

 

We have a house on 1 rai of land, and the local land office tried to say that they would only count 100 sq. wah as residential property and wanted to tax the remaining 300 wah as vacant land. My wife balked, and it wound up in a battle of wills. They tried compromising on 200 wah, but my wife demanded if they didn't believe that a house could sit on an entire rai of land to come out, investigate and file an official report that she would challenge in court.

 

The land office seems to have backed down for the moment, but when money is involved, don't expect anything to be straightforward. If you have a large property, you can bet that someone, sometime is going to get clever and try and say that your whole property is not used for a primary residence.  At that point, you will need to make a decision on whether or not you want to try and fight.

 

This is ultimately an individual decision by the tax assessor. Anything can happen. Just be prepared.

 

Interesting.. 

 

I (my wife for the pedants ???? ) have a 5.25 rai plot, which I was looking to turn into extended gardens (minor lake, fruit and ornamental trees, etc).. I would have believed that given it is going to be maintained, it clearly would be part of the 'villa and gardens' but under the 50 million level..   

[alacrity]

On 11/25/2019 at 3:29 PM, smutcakes said:

No. Why would there be a flood of condos. 1st condos are exempt and 2nd are like 0.02% of the assessed value per annum. So on a 5 mill condo it is your 2nd that would be 10,000 thb per annum. Not sure why that would cause a flood? Can you explain what i am missing?

The surge may have passed you already.

Take a look at the current stipulations. If you've bought within a set boundary. You may have issues though.

Haven't seen any indication of the value criterion yet. That valuation will be the key driver.

[SantiSuk]

On 11/25/2019 at 3:29 PM, smutcakes said:

No. Why would there be a flood of condos. 1st condos are exempt and 2nd are like 0.02% of the assessed value per annum. So on a 5 mill condo it is your 2nd that would be 10,000 thb per annum. Not sure why that would cause a flood? Can you explain what i am missing?

5 million at 0.02% = 1,000 ThB by my reckoning; reinforces your argument - not a significant cost. I wonder how many others are going to struggle with the maths of such small percentages.

 

[1% = multiply by 0.01;    0.1% = multiply by 0.001;    0.01% = multiply by 0.0001: 0.02% = multiply by 0.0002]

[MRToMRT]

I received my bill last week from the BMA (Bangkok) so the are now being posted out via an automated system.

 

 

 

 

[ukrules]

On 11/25/2019 at 3:29 PM, smutcakes said:

No. Why would there be a flood of condos. 1st condos are exempt and 2nd are like 0.02% of the assessed value per annum. So on a 5 mill condo it is your 2nd that would be 10,000 thb per annum. Not sure why that would cause a flood? Can you explain what i am missing?

I think the problem is not in the condos which have been sold, it's the unsold units.

 

Think of a massive developer who has a very large number of unsold units across various projects.

 

They're all going to be taxed, they won't want to keep them on the books. Logic would suggest that they will be dumped on the market by a motivated seller.

 

I'm not 100% sure on this but I read something that states the more you own, the more you pay per year per unit. Any ideas on the percentage of unsold empty units in the large projects which are still owned by developers?

[smutcakes]

10 hours ago, ukrules said:

I think the problem is not in the condos which have been sold, it's the unsold units.

 

Think of a massive developer who has a very large number of unsold units across various projects.

 

They're all going to be taxed, they won't want to keep them on the books. Logic would suggest that they will be dumped on the market by a motivated seller.

 

I'm not 100% sure on this but I read something that states the more you own, the more you pay per year per unit. Any ideas on the percentage of unsold empty units in the large projects which are still owned by developers?

They would have to pay but they have a 90% discount for the next 3 years to prepare themselves. 

 

I imagine they will just change the way they transfer, register etc to mitigate it.