Annual Property Tax

[donx]

I have asked this question of my wife and all she does is look at me without understanding what I am asking.

In the United States, it is common to have to pay property taxes every year for whatever type of real estate you own. Is there a similar tax in Thailand? If so does it only apply to certain types of property?

My wife owns some land with a Chanote and other agricultural lands with various types of land titles. As far as I can tell I don't think her family has paid any tax, but perhaps my in-laws have been paying and my wife is unaware of this. My wife purchased a piece of land last year which has a Chanote and I would hate to find out that she could lose the land because she failed to pay taxes on it. We plan on using it to build a retirement home.

[ajahnlau]

I have asked this question of my wife and all she does is look at me without understanding what I am asking.

In the United States, it is common to have to pay property taxes every year for whatever type of real estate you own. Is there a similar tax in Thailand? If so does it only apply to certain types of property?

My wife owns some land with a Chanote and other agricultural lands with various types of land titles. As far as I can tell I don't think her family has paid any tax, but perhaps my in-laws have been paying and my wife is unaware of this. My wife purchased a piece of land last year which has a Chanote and I would hate to find out that she could lose the land because she failed to pay taxes on it. We plan on using it to build a retirement home.

No yearly property taxes. A tax is paid by the seller when property is sold.

[Irene]

There is a property tax applicable to ownership of land. It is an ancient law that was enacted seventy or eighty years ago and the rates per rai are so negligible that it is not worth being concerned about this tax. Once you are assessed, then you would be subject to an insignificant fine. It is only a few hundred bahts. So in practice most Thais do not voluntarity pay this tax.

One advantage in paying this tax is to have one's defence to a court that you have yearly declared your official ownership in the event of having a trespasser arguing for ownership of the land if he maintains his possession as right of ownership. Another advantage is to use as a basis of arguing the land value as declared yearly in the event of your land being subject to repossession by the government. If you are not concerned with these two factors, then join in with most Thais in ignoring this tax.

[donx]

Irene,

Thank you for that interesting and informative response. Since I am not officially the owner of any of these properties, I doubt I will be able to convince my wife that it would be a good idea to pay the annual tax on her properties. I'm sure her family would say that it is a waste of money.

If it was up to me I would pay the annual tax. I am concerned about squatters on our most recent land purchase; however, we do have a relative of one of my wife's cousin-in-laws that is a neighbor and they will watch over the land for us. They will even plant some new trees for us to help protect the beach front from eroding. I don't think the government will try to take the land away from us, but I do know that the price for the land reported to the land office was much less than we actually paid because the seller wanted to pay lower transfer taxes and fees. Since the seller paid all of these fees, my wife wasn't happy about the lower reported sales price but went ahead with the transaction nevertheless. I had told her I heard this was a common practice and her brother also convinced her that this was commonly done. Because of this, I suppose if the government did decide to take our land then they may pay us much less than we paid for the land. Again I doubt this will happen so I don't see us paying the annual tax.

By the way, I want to thank you for all the other valuable responses I have read from you on this forum. Having individuals like you and quiksilva on here makes this forum a great place. Please keep it up and don't let the occasional detractor get you down.

[backflip]

"my wife wasn't happy about the lower reported sales price but went ahead with the transaction nevertheless."

Why would your wife be unhappy about the lower reported sales price? Is she afraid when she sells it, she'll have to pay more tax on it? Heck, that's why you're there.

[Irene]

Thank you for your last comments. It means a lot to me. This forum is immensely helpful if one knows how to sieve through some of the comments that are made off their hats. I learn almost everyday of new thought and knowledge. I am more than glad to contribute since I receive more from others.

I agree that lowering declaration of value is common, normally to save sellers' tax liabilities. When the government takes over your land, it will rely on the latest price as concluded and registered by the latest seller and buyer and not on your historical price only.

[kamalabob2]

I would go to the Amphur office and Pay the "annual tax on the land". In our town the tax is about 26 baht a YEAR per RAI on the property. There is NO TAX on the improvements except if the buildings are Commercial such as a shop house, factory, hotel, retail store, or restaurant. The "annual tax on land" is even LESS on "Agricultural Land". I think about 8 baht per Rai. In my opinion a fair way to pay for government services. Why not "step up" and pay a few years property tax? Is a Drivers License not about 105 baht? I think much better to be 100% legal than leaving yourself open to exploitation by corrupt government officials or corrupt policemen. The Amphur office has a manual ledger in our town where the property tax payments are noted. A written receipt is given showing the parcel number.

It is inexpensive, takes very little time at the Amphur office and you have done the "right thing" for the Kingdom.

[donx]

It is inexpensive, takes very little time at the Amphur office and you have done the "right thing" for the Kingdom.

For me it isn't inexpensive. I don't live in Thailand. I live in the United States and I don't travel every year to Thailand so for ME to do this would be very expensive. On the other hand, if I can get some of my Thai relatives to pay the annual tax, then that shouldn't be too expensive. The problem for me will be convincing my Thai relatives that this is the "right thing" to do. You and I both know it is the "right thing" to do. So is wearing seat belts, using infant car seats, and wearing motorcycle helmets the "right thing" to do. Thais often aren't willing to do the right thing.

I will see if I can get my wife to have someone go to the two or three land offices that are responsible for the various plots of land my wife owns to have them pay the annual tax. I will let you know if I am successful at getting someone to pay the tax. Thank you for your suggestion. I would prefer to have the tax paid each year.

When is the tax due? At the beginning or end of the year? Is it based on the Thai or Western calendar? Does it depend upon the date the property was purchased? What about land that isn't registered at the land office but has a Sor Tor Gor land title (written as ศ. ฅ. ก.)?

[Irene]

When is the tax due? At the beginning or end of the year? Is it based on the Thai or Western calendar? Does it depend upon the date the property was purchased? What about land that isn't registered at the land office but has a Sor Tor Gor land title (written as ศ. ฅ. ก.)?

The tax is based on a calendar year and due for filing in April(?, not sure whether it is April or May) thereafter.

I have no knowledge on the position of Sor Tor Gor.

[donx]

The tax is based on a calendar year and due for filing in April(?, not sure whether it is April or May) thereafter.

If this is the case, then the tax collection date is probably based upon the Thai New Year which starts on April 13.

[kamalabob2]

It sure seemed inexpensive to pay four or five years in ADVANCE. I'm not sure how many Rai you are speaking about, but for less than one taxi ride from the Phuket airport to Patong (from the in airport mafia taxi, not metered taxi outside the terminal) you could pay four years for many rai of "property tax" for residential or farm land. If you are still in Thailand, it seems simple to pay several years in advance at one visit. Of course this being Thailand your personal experience at your local government office may differ. My wife comes from a family of very modest means, but they actually had the receipts to show the timely payment of annual property tax on land they own in a village and a license fee to sell Thai alcoholic beverages and tobacco. Frankly the citizens here are used to "jumping through hoops" when dealing with most if not all Government offices and banks so it is not a stretch to have a competent member of the family go to pay the annual property tax. I seem to recall the receipt had the parcel number or plot number written on it. Best of luck with having a person in the family pay the tax bill and it might be a stretch for them to understand "pay in advance". Seat belts and motorbike helmets are a different matter!!

[Irene]

Officially, Thai New Year is only good for celebration. In Thai laws, international calendar year is the basis. For the year 2007, you are supposed to file by April 2008. (I am now sure it is in April as currently advertised in many Thai newspapers).

[Irene]

Good idea to pay in advance but I don't think it is possible for the district office to receive tax payment in advance. It is just too confusing for the system.