Land tax exempted on first residential house valued up to 50m baht

[webfact]

Land tax exempted on first residential house valued up to 50m baht

 

   

BANGKOK(NNT) - There has been some confusion about the new land and building tax collection, effective from 1st January 2020, especially on what to do should a person own multiple houses and apartments. The Ministry of Finance has now confirmed that tax will be exempted on the first of such a residential group held by the same owner, up to a value not exceeding 50 million baht.

 

The Fiscal Policy Office Director General Lavaron Sangsnit said that the collection of this new tax won’t cause any higher burden on taxpayers compared to the previous tax regulations, as the new tax will be exempted on the first owned residential house valued at no more than 50 million baht.

 

It means 99.96 percent of first-time house buyers are exempted from having to pay the tax. Persons owning one residential house or apartment worth more than 50 million baht, which makes up 0.04 percent of all first-time house buyers or some 10,000 persons, will have to pay 200 baht tax each year on every million baht of excess housing value.

 

Persons owning multiple houses will however have to pay taxes on their second house without any value exception. A tax of 200 baht will be collected, for every million baht in value of the residential housing, and at 3,000 baht for every million baht in value of housing for rent.

 

The government has postponed the first collection of this land and building tax for four months to give local authorities time to prepare. House owners who receive value assessment letters from their district office or local administration should verify the correctness of evaluations, and contact respective agencies to make corrections if needed.

 

Individual farmers will be tax exempted for their farms worth up to 50 million baht. Farmland owned by corporations will be taxed at 100 baht for every million baht in value. Land and building used for industrial, commercial, and rental purposes will be taxed at variable rates starting from 3,000 baht to 7,000 baht for each million baht in value. Unused land will also be taxed; it is to be assessed at a progressive rate starting at 0.3% and rising to a 3% cap, to encourage land utilization.

 

-- © Copyright NNT 2019-12-20

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[ThomasThBKK]

1 hour ago, webfact said:

Individual farmers will be tax exempted for their farms worth up to 50 million baht.

ROFL.

 

The exemption is also only for people who own land and house. So basically this law just <deleted> us foreigners, condo owners and investors in an already unattractive real estate maket.

 

This happens when people with no economic understanding run a country. 

[sanmyintmaung]

2 hours ago, ThomasThBKK said:

ROFL.

 

The exemption is also only for people who own land and house. So basically this law just <deleted> us foreigners, condo owners and investors in an already unattractive real estate maket.

 

This happens when people with no economic understanding run a country. 

"Persons owning one residential house or apartment worth more than 50 million baht, will have to pay 200 baht tax each year on every million baht of excess housing value"

It does mention apartment in the OP so not only for landed properties. The way I understand is this new tax is targeted to people owning more than one house or apartment.

[ThomasThBKK]

40 minutes ago, sanmyintmaung said:

"Persons owning one residential house or apartment worth more than 50 million baht, will have to pay 200 baht tax each year on every million baht of excess housing value"

It does mention apartment in the OP so not only for landed properties. The way I understand is this new tax is targeted to people owning more than one house or apartment.

No this exclusion is only for people that own the LAND AND HOUSE. But foreigners can't.

Also Condos are excluded only if they are worth less than 10 mio THB, for the same reason.

[ThaiFelix]

Very much doubt anybody in my small 1 buffalo village will be paying any Land Tax lol

[alacrity]

5 hours ago, sanmyintmaung said:

"Persons owning one residential house or apartment worth more than 50 million baht, will have to pay 200 baht tax each year on every million baht of excess housing value"

It does mention apartment in the OP so not only for landed properties. The way I understand is this new tax is targeted to people owning more than one house or apartment.

Ten million THB for an apartment or condo. Have had legal advice that the exception is per province.

Totally unaware of the valuation criteria for properties as the conditions vary. Makes me wonder if the tax will be applied retrospectively in a hundred years time (when they've finally organized themselves).

[ExpatOilWorker]

10 hours ago, alacrity said:

Ten million THB for an apartment or condo. Have had legal advice that the exception is per province.

Totally unaware of the valuation criteria for properties as the conditions vary. Makes me wonder if the tax will be applied retrospectively in a hundred years time (when they've finally organized themselves).

You can find the valuation here: http://property.treasury.go.th/pvmwebsite

[Flyfish]

my wife owns a small house in Hua Hin (7mB0.....and an apartment in BKK worth about 7M also.She has received a document from the authorities in BKK asking her to confirm the size of the apartment, if correct then no further action needed.

presumably this is for valuation purposes.

The apartment is currently vacant....is she likely to have to pay the new tax when it comes in? 

Do we need to register it as for our own use only, in some way...or is that irrelevant,as she has the main property in HH where we live.

Elsewhere, I have read of the 50MB lift on house and land....also a 25MB limit.....also a 10MB limit for apartments with no land???

As with many laws in Thailand,there appears contradictory information....little of which is clear?

It is also unclear if there is a difference re tax in rental property as opposed to "own use"

any clarification would be gratefully received. Than

 

 

 

 

[Srikcir]

The legal details include:

https://www.mazars.co.th/Home/Doing-Business-in-Thailand/Tax/New-Land-and-Building-Tax-Act

• For first homes, there is a tax exemption of up to THB 50 million for owners of both the land and home, whose names are on the household registration documents, and up to THB 10 million for those who own homes only and whose names are on household registration documents.
• If any property is used for several purposes, tax shall be levied in proportion to the area used for each purpose according to the rules and procedures specified by the Minister of Finance and the Minister of interior.
• There is a tax exemption for agricultural land worth up to THB 50 million belonging to individuals, and the new law will not be applicable to individual owners for the first three years.

Edited December 22, 2019 by Srikcir
Formatting corrupted after submittal - repaired