Local administrations are facing challenges with land tax issues

[snoop1130]

 

The Permanent Secretary of Finance, Lavaron Sangsnit, says that determining the tax load for unused land is a significant issue for local governments. The existing tax law, which has been in effect for five years, is being reviewed for potential changes, with attention being given to how land use is enforced and interpreted.

 

A key point of contention, Lavaron notes, is the suggestion of planting lime trees in Silom district, one of the most expensive real estate areas in the country. Lavaron opposes this suggestion, recommending that such land be taxed as unused instead of being taxed as agricultural land. The application of this discretionary judgement is most likely to come into effect in urban areas like Bangkok and Pattaya.

 

Recently, the Finance Ministry carried out a public survey on the land and building tax application, with over 500 people giving their opinions. Currently, the tax rates being used are reference rates set by the government for local tax collection, these are minimum rates that local administrations can raise but not reduce. Lavaron has strongly emphasized that local administrative organisations are allowed to increase taxes to help fund local key service projects like electricity, water supplies, and roads.

 

The ministry is also considering the criteria for designating green areas for land and building tax exemptions, which could allow landowners to turn unused land into public gardens and thus avoid paying tax. Another possible exemption could come from developing land into public parks or forest parks, providing clear rules are set. Additionally, Lavaron stated that landowners could evade taxes by letting local administrations use their land exempt from tax.

 

He revealed that the projected income from land and building taxes for the 2024 financial year is anticipated at 40 billion baht, revealing a possible increase of 3.7 billion from the last fiscal year. This rise in revenue could mean there's no need to raise the average tax rate.

 

File photo for reference only

 

-- 2024-06-10

 

Get our Daily Newsletter - Click HERE to subscribe

[Pouatchee]

taxrs... once again. thailand the hub of taxes ... thank you puke thai. used to be that thailand really was a good place to plan a retirement...

[tomacht8]

"The ministry is also considering the criteria for designating green areas for land and building tax exemptions, which could allow landowners to turn unused land into public gardens and thus avoid paying tax. Another possible exemption could come from developing land into public parks or forest parks, providing clear rules are set." 

 

Who would run something like that, given the existing squatter rights? Instead of always thinking about more and more taxes, Thailand should properly measure all properties nationwide and issue legally secure property documents. The waiting times for an upgrade of property documents sometimes took many, many years or decades, if you are not willing to pay "extra".

Edited June 10 by tomacht8

[Peabody]

4 hours ago, snoop1130 said:

The ministry is also considering the criteria for designating green areas for land and building tax exemptions, which could allow landowners to turn unused land into public gardens and thus avoid paying tax. Another possible exemption could come from developing land into public parks or forest parks, providing clear rules are set.

Much like Chuwit Park on Suk in BKK?? That's a nice, green, public park, right?

[hotchilli]

13 hours ago, Pouatchee said:

taxrs... once again. thailand the hub of taxes ... thank you puke thai. used to be that thailand really was a good place to plan a retirement...

Thailands broke after the coup and military regime that followed, they stripped it of all it's assets and ran it into the ground during Covid.

The pot is empty.

[TheFishman1]

How many ways can this government think about collecting taxes and making money? I think the whole system here is really rough top to bottom corruption TIT.

[nobodysfriend]

The present legislation where unused land is taxed higher than land used for ( palm ) plantations is stupid and destructive .

Where I live , I see the natural forest destroyed every day .

They cut the big , old trees to plant some miserable palm trees ... everywhere .

 

 

They destroy the natural habitat of a lot of endemic species and gain nothing from that , except a little lower taxes .

Fault of the system and a shame .

[bg53]

14 minutes ago, nobodysfriend said:

They destroy the natural habitat of a lot of endemic species and gain nothing from that , except a little lower taxes .

Fault of the system and a shame .

 

I agree.

 

Here, they plant banana, just a token amount, to get around the taxes. 

[Srikcir]

17 hours ago, snoop1130 said:

The existing tax law, which has been in effect for five years, is being reviewed for potential changes, with attention being given to how land use is enforced and interpreted.

"In March 2019, the Thai government introduced the new Land and Building Tax Act B.E. 2562, which has been in effect since January 1, 2020 ... The tax rates on properties were previously assessed on an income-based method. The Act replaces this method with an assessment based on the property’s appraised value, as determined under the current Land Code." https://www.aseanbriefing.com/news/thailands-new-land-building-tax-act/

I interpret "Land Code" to mean land use according to current zoning or potential zoning change. For example, vacant land being used for grazing while zoned or high potential for zoning change due to location might be valued as commercial (ie., frontage on a main highway) or residential property within a highly developed residential area. One objective of the law was to prevent rampart real estate speculation.

 

But there has been an update to that law:
"Thailand Officially Reduces Land and Building Tax for 2023," https://www.tilleke.com/insights/thailand-officially-reduces-land-and-building-tax-for-2023/

The Royal Decree on Land and Building Tax Reduction (No. 3) B.E. 2566 (2023) will effectively reduce land and building tax payments by 15% in 2023 for the following types of land and buildings:

• Land or buildings used for agricultural purposes;
• Land or buildings used for residential purposes;
• Land or buildings used for other purposes; and
• Vacant or unused land or buildings.