Renting a house in Bangkok and paying building and land tax

[thenoilif]

I am interested in renting a house and I’ve come across a provision in the contract that I haven’t seen before since I’ve only rented condos up until now. 

 

The provision states: 

 

“Throughout the rental period  Household tax  Land and building tax when applicable and / or other equivalent taxes plus income tax on the payment of such tax, if applicable”.

 

Has anyone ever had to pay these taxes as part of the rental agreement and if so, is there a standard rate I should expect to pay?

 

Thanks for any advice.

[holy cow cm]

Should be you the renter are not involved, but maybe the landlord will add extra cost for it he or she will have to pay. Land tax is capped at 5 million and above for each property I believe. Me with my wife and my house do not pay anything and our house is 3.5 million. Maybe more with all the improvements we have done. 

[Pmbkk]

It maybe a way of splitting the overall charge into two parts for tax purposes, e.g. pure rental income v their expenditure (taxes/furniture). In most condos these are combined, although you can write a contract to split them.
I'd ensure you know what these costs are and are documented before signing anything.

 

For example in mine there are two parts, one I specify for the costs e.g. taxes, furniture and the second for rental cost.

 

Most large serviced apartments(incl' high-end) on their official invoices charge a huge amount for costs(furniture/services/cleaning etc) and very little for the apartment rental ( the bit they get taxed on ).

[boonchu]

I have only ever paid these taxes when renting a factory.

[khunPer]

14 hours ago, thenoilif said:

“Throughout the rental period  Household tax  Land and building tax when applicable and / or other equivalent taxes plus income tax on the payment of such tax, if applicable”.

That sounds weird, paying landlord's income tax is not the renter's responsibility, and what tax break do the landlord pay; i.e. 5% or 35%?

 

Land tax is often the renters responsibility in standard contracts. The size of the tax is dependent of the status of the land, and the appraised value.

 

Building tax is dependent of how the building is registered, for example for residential purpose, or for business/commercial purpose, and the appraised value of the building.

 

Ask to se the last tax slip, including the appraised value, so you have an idea of what amount the talk is about, it could be a few hundred baht only.

 

You need more specifications for "income tax".

[jackdd]

22 hours ago, thenoilif said:

“Throughout the rental period  Household tax  Land and building tax when applicable and / or other equivalent taxes plus income tax on the payment of such tax, if applicable”.

I've rented houses in the past, and never seen such a clause. Insist on it getting removed before signing the contract.

[smutcakes]

I expect they just downloaded an agreement, or nicked an agreement from somewhere and forgot/did not read it properly. I would just email them and ask in the 1st instance. Paying land and property tax is an owner responsibility in general on residential. It also relates to how many other properties the owner owns/value so is pretty out of your control/visibility.

 

Just give them a call/email to clarify it, not a major issue.