New 2020 property / business tax changes

[Tanya Shearn]

Hi , went today to visit our accountant. He just notified me that on the top of his usual 18K annual accounting charges there is a new tax was introduced this year and we will have to pay from what I understood ( his English is very poor) from 4000 to 6000 baht extra each year depending on valuation( if house valued under 2 million 4000 and over 6000 ) . Not trusting this chap however we inherited him from previous owner of the house and land . Anyone know something about it ? Thanks 

[cmsally]

It depends on the status of the house. Is it owned by you or rented? Is it private residence/ rented out / business.

If it is owned by you and used as your primary residence with no business; there should be no tax if the value is under 50m Baht.

[MrJ]

i have just paid as every year 12k to my accountant (self used house under co/ltd)

[Tanya Shearn]

The house and land is registered as a company of course . We stay here 4-5 months each winter . 

[bbabythai]

I’m interested in this thread. As a tenant no doubt a landlord will pass this onto me

[natway09]

As a "primary residence " valued under 50K no tax if ONLY you live there & nobody pays you any rent to share.

If in a company name there will be some liability as it is being used in their eyes as a business

[khunPer]

The property tax is still a bit unclear, so far postponed till start August 2020. I cannot clearly see what might be the tax situation for an owned building on leased land, i.e. the building should have no tax under 10 million bath appraised value, but the land...????

 

Quote

Tax rates

The following ceiling rates have been introduced for four categories of property:

   (1) Properties used for agricultural purposes:                          0.15%

   (2) Properties used for residential purposes:                          0.30%

   (3) Properties used for purposes other than (1) and (2):         1.20%

   (4) Vacant/non-utilised properties*:                                          1.20%

*If the land or building is left vacant or undeveloped for three consecutive years, the rate will increase by 0.3% every 3 years subject to a cap of 3%.

Tax rates have been announced for 2020 and 2021. For example, for a condominium unit owned by an individual that uses the unit as their place of residence and their name appears in the house registration book, the tax rates are:

Tax rates after 2021 shall be prescribed by Royal Decree. The local authority empowered to collect the tax has the power to impose a higher rate but in any case it shall not exceed the ceiling rates.
 

Tax exemptions

Tax exemptions are provided in the following cases:

• Land and buildings owned by individuals that are used for agricultural purposes shall be exempt from tax until 2022, after which a tax exempt threshold of Baht 50 million shall apply.
• A tax exempt threshold of Baht 50 million shall apply to land and buildings owned by individuals that are used as their place of residence, if their names appear in the house registration book on 1 January of the tax year
• A tax exempt threshold of Baht 10 million shall apply to buildings owned by individuals, where they are not the land owner, that are used as their place of residence, if their names appear in the house registration bookon 1 January of the tax year. By definition this would include a condominium unit.

Source and more info here.

[ThomasThBKK]

On 2/5/2020 at 7:49 PM, Tanya Shearn said:

The house and land is registered as a company of course . We stay here 4-5 months each winter . 

 

 

That's a bad mistake, the house should never be in the companies book. It should be privately held by you or your husband.

 

You are already liable to 12.5% tax for every year there of the assed value of 1 years rent. 

 

Your accountant should not call himself accountant.

 

On top of that comes the new commercial RE tax. 

 

You can read more about it here for example: https://forum.thaivisa.com/topic/1040098-tax-letter-from-city-hall-for-company-house-ownership/?tab=comments#comment-13040189

[captpkapoor]

Yes, from this year onwards - as per status checked on 1.1.20 - property tax is to be paid. If you have only one residence, self-occupied, you can go to the local BMA office at your local district office, and certify it as such. If you have a yellow book, and are owners in self-occupation of primary residence, no tax.