The City Come After Jomtien Complex

[sharecropper]

My friend owns in Jomtien Complex and today showed me a letter from City Hall sent to all Jomtien Complex owners, enquiring about unpaid taxes on rental units.

Has any other condo development had these letters, or is this payback for the VT7 hassle which City Hall also got dragged into?

[jbaldwin]

I do not understand why would Pattaya City Hall write letters about taxes Taxes are assessed and collected by the Revenue Department.

Not aware of anything similar where I live

[nam-thip]

I suggest this is reference to those buildings in the Jomtien complex that have rooms to rent and all leased accommodation carries a 15% government tax (if declared).

Not many people pay this tax as they simply don’t declare the rental income.

What I reckon the government is chasing is unpaid taxes on leased accommodation so if you own a small guesthouse and you’ve paid zero tax on income collected you might just find yourself on the wrong side of the Thai tax laws.

[sharecropper]

I suggest this is reference to those buildings in the Jomtien complex that have rooms to rent and all leased accommodation carries a 15% government tax (if declared).

Not many people pay this tax as they simply don’t declare the rental income.

What I reckon the government is chasing is unpaid taxes on leased accommodation so if you own a small guesthouse and you’ve paid zero tax on income collected you might just find yourself on the wrong side of the Thai tax laws.

Thanks for clarifying that.

So, is Jomtien Complex the only condo development so far to have had this tax squeeze put on them, or have other condos also been blanket-served with these notices?

Many thanks.

Edited October 28, 2009 by sharecropper

[wpcoe]

To the OP: Does your friend own a condo in the twin towers, or a shop house in the complex behind them? Both are referred to as "Jomtien Complex," but they are really quite different.

[sharecropper]

To the OP: Does your friend own a condo in the twin towers, or a shop house in the complex behind them? Both are referred to as "Jomtien Complex," but they are really quite different.

The Twin Towers, and I have now had a closer look at the (confusing) translation of the paperwork, which WAS sent by City Hall's Treasurer's ofice, in relation to land and building tax, to all Twin Towers owners. It all looks a bit heavy, and to date no other condos seem to have been mass served with these notices ((Por Ror Dor 2)

[FarangBuddha]

It was purely coincidental...no need to be paranoid...you're living in Thailand...the Land of Smiles

[Guderian]

I've talked to a couple of owners in JCC, one of whom lives in his condo, and another two guys who have multiple units that they rent out. Bizarrely, the guys renting out units said that this is no problem, at most it will cost around 1000 Baht/year per room, whereas the guy who simply lives in his condo is very worried about it. He seems to have got the idea that City Hall will be wanting 12.5% of the notional rental value of each condo per year, regardless of whether it is let out or lived in by the owner. It all seems very strange to me, why only JCC owners have received these letters and no other condos that I have heard about. The perils of owning property in Thailand, I guess, they can change the rules and invent new ones as and when they feel like it.

[sharecropper]

That was one of the things i found confusing in the translation but I read it as meaning the tax may be assessed up to 12.5% of the rent.

It should not apply to owner occupiers at all, as it is a tax on rent, but the translation suggests that 12.5% of the assumed rental value of the condo is assessable annually as tax, let or not, which is the poor translation not the law I think.

Anyone in JCC have a better interpretation?

Guderian, I think this particluar case isn't a peril of owning property in Thailand. I think it is a peril of suing VT7 and City Hall!

[jbaldwin]

If this letter is about tax on rental income then I would have expected it to have come from the Revenue Department not City Hall.

I found this in a search of Thaivisa

Any chance that this acticle is correct and the letters are the first action to collect this new tax?

http://www.thaivisa.com/forum/Building-Land-Tax-t307830.html

Are these the only one with this info or can anyone confitm:

...........................

website: bangkoklawonline.com

Both the current Building and Land Tax and Local Maintenance Tax will be replaced by a new Building and Land Tax that will be issued before the end of 2010 at the latest.

Under the new property tax law every owner of land and/ or any permanent structure built upon the land must pay building and land tax (owner-occupied residences are under the new property tax law not exempt). For every building this property tax must be paid. The new building and land tax will be based on the appraised value and use of the property. Appraised value is set by the Treasury Department and adjusted every 4 years, with next valuation in 2011. Under the new building and land tax there are 3 tax with maximum rates:

1. If the property is used for commercial purposes the tax rate shall not exceed 0,5 % of the appraised value of the land and building.

2. If the property is used for a private residence by he owner the tax rate shall not exceed 0,1 % of the appraised value of the property.

3. A tax of 0.05% of the appraised value shall be charged if the land is used for agricultural purposes.

The above rates are the maximum tax rates that can be charged by the local authorities, therefor locally these property taxes could be less.

Article Building and Land Tax