Land and House Tax

[Tropicalevo]

We look after a number of villas and most of the owners live overseas. So we pay their local bills for them.

We have been having fun for two years now with the House and Land tax. Not a big deal as everyone was given 90% discount for their house tax.

 

This year, we received the bills and it was for the full amount.

This is in spite of the government saying that a discount would still be given for 2022-23.

We contacted the Revenue department and they originally said - 'wait and see'.

Now that has changed to 'you must pay the full amount and because you are late, there is a small fine'.

They admit that the amount on the bill is wrong and it should be discounted, BUT they have not received the 'official' letter yet so the original bill must be paid.

By the way. The small fine is not so 'small'.

One owner is 6 days late on a 14,000 baht tax bill. The fine is 1,500 baht.

They readily admit that they do not know how or when to give refunds for over-paid bills.

 

Local government at its best?

[khunPer]

3 hours ago, Tropicalevo said:

Local government at its best?

Last year I went four times to the revenue office to try to pay my land & house tax bill - actually, only land, as the house is a home with appreciated value under 10 million baht - but the bill was not ready, »please come back next month«.  Unfortunately the last last "next month" just passed number one and the tax had already been calculated - I however never got a bill - and now I was late, and due to that I had to pay 10 percent penalty, but it was not my fault, the kind staff said, as I haven't got a bill, but the rules ware like that.

 

This years I again went early - the revenue office had told me two years ago to come early to pay, in February - but they hadn't made the calculations yet, but they would send me a new letter with a bill in April and I shouldn't come back before - they are probably tired of the by now well known farang that insist to pay his land-tax - I however havn't yet got any new bill with tax-calculation. Perhaps I better visit the revenue office again and pay bill and fine, and fine for late payment...

[huberthammer]

The same pattern when something new is introduced.  A reasonable idea/plan that is poorly executed with the people who have to deal with the customers being poorly equipped and informed.

 

Nothing annoys me more than then  to see some of our more unpleasant fellow foreigners getting loud with the people holding the bag of manure that they got handed down.

 

These bureaucratic labyrinths are  frustrating but part of the "cost" of living here.  On the bright side, in comparison to most countries, the land tax is very low. Almost questionable if it is worth their administrative cost.

[khunPer]

Actually the revenue office should have their calculation ready in February, I found this about payment of the new land & buildings Tax...

 

When is the tax due?

The local government authorities shall notify the taxpayer of the amount of tax to be paid by February of each year. The taxpayer must pay the tax as stated in the notice by April of every year.

The notification should include a list of the land or buildings, the appraisal value, the tax rate and the amount of tax payable.

Source link HERE.

[Tropicalevo]

9 hours ago, khunPer said:

The taxpayer must pay the tax as stated in the notice by April of every year.

There is a daily fine for late payment.

The other problem is that there seems to be no direct contact/updates between the Land office and the Revenue office.

We register our houses with the land office but many of my customers do not have their house registered with the revenue department. It seems that the land office do not pass this information to the revenue office.

The good news is that when we told the the revenue office that there was now a house on the land, they gave us until the next tax year to provide the documents for an update.

[khunPer]

2 hours ago, Tropicalevo said:

We register our houses with the land office but many of my customers do not have their house registered with the revenue department. It seems that the land office do not pass this information to the revenue office.

To my knowledge it's not the Land Department that register houses, it's tessa ban, the office that also issues building permission, and a house number, and a House Book. You need at statement from tessa ban if the house is used as primary home to bring to the revenue office for tax calculation; however, if the house is primary used to be rented out, it's business tax ("other use").

 

I've never registered my house at the land office, everything has been managed by tessa ban, including statement for being primary home, or residential use by the owner. The revenue office knew well about the house, but not the status as being a primary home, there is a reasonable large tax-exempt for a building used as primary home, and even larger if the house and land has same owner.

 

Quote

Land or buildings which the owner uses for a residential purpose and has his/her name listed in the household registration certificate on 1 January of the tax year shall be exempt from the value of the tax base if the calculation of tax does not exceed THB 50 million.

 

In the case that the owner owns the building without owning the land and uses the building for residential purposes and his/her name is listed on the household registration certificate on 1 January of the tax year, the owner will be exempt from the value of the tax base in the calculation of tax if the amount does not exceed THB 10 million.

Long term rent - i.e. lease running for 3 years and more - and separate house ownership from land for a house when changing owner (the house need to have building permission separated from the land owner), needs to be registered at the land office...????

[Tropicalevo]

8 hours ago, khunPer said:

To my knowledge it's not the Land Department that register houses,

I am sure that your information is better than my assumption.

My assumption was based on the fact that, after my initial tax bill - I was taxed for land only.

I had to go to the land office for documentation to prove that I had built houses on it.

I never had to go to the Tessabaan for anything to do with House and Land tax changes.

It is all as clear as mud. ????

[khunPer]

3 hours ago, Tropicalevo said:

I am sure that your information is better than my assumption.

My assumption was based on the fact that, after my initial tax bill - I was taxed for land only.

I had to go to the land office for documentation to prove that I had built houses on it.

I never had to go to the Tessabaan for anything to do with House and Land tax changes.

It is all as clear as mud. ????

If your house is for residential use, i.e. the owner of the house is registered in the blue house book, then you should only pay tax of the land, if land is not owned by a Thai national that lives in the house. Residential use of a house is not approved by the land office, but by tessa ban. Your building permission and house book is issued by tessa ban...????

[Paulgo]

Hi All 

 

I have 2 condos in Pattaya in two different developments. City Hall have charged me at 0.02 and the other at 0.3 ? Is that normal as checking on the Internet I see the rates are quite clearly mentioned (see Link below). I am currently abroad and returning in November. I have asked Juristic to look into it and hopefully they will get it corrected. Any comments or suggestions would be appreciated. many thanks. 

 

 https://www.mondaq.com/property-taxes/1144690/no-change-for-thailand39s-land-and-building-tax-rates-for-2022

[Paulgo]

Hi Again

 

I forgot to mention they are both held in Thai Company name.

[khunPer]

On 5/29/2022 at 10:35 PM, Paulgo said:

Hi All 

 

I have 2 condos in Pattaya in two different developments. City Hall have charged me at 0.02 and the other at 0.3 ? Is that normal as checking on the Internet I see the rates are quite clearly mentioned (see Link below). I am currently abroad and returning in November. I have asked Juristic to look into it and hopefully they will get it corrected. Any comments or suggestions would be appreciated. many thanks. 

 

 https://www.mondaq.com/property-taxes/1144690/no-change-for-thailand39s-land-and-building-tax-rates-for-2022

Seems like your second condo might be considered as business...????

[Tropicalevo]

On 5/5/2022 at 8:39 PM, khunPer said:

Perhaps I better visit the revenue office again and pay bill and fine, and fine for late payment...

Quote

The Interior Ministry has extended the deadline for land and building tax payments for three months to help people and business operators cope with economic hardship.

It said taxpayers have until the end of July to pay up, instead of the end of April.

The second quote is from the BP announced today.

So, we have the left and the right hand working in opposite directions.

At the end of June we are told 'no fines for late payment' after April.

But some of my customers have already been fined in May!

 

The BP also quoted

Quote

However, the existing tax discount remains valid through this year.

Then why have we all paid the full price?

[khunPer]

4 hours ago, Tropicalevo said:

Then why have we all paid the full price?

Thanks for sharing the news; However, a question is, if it's worth complaining...