Property Tax Of To Be Levied By Local Authorities. Wef 1/1/11

[Mobi]

Excuse me if this subject has been raised before. I don't often venture into this forum these days so I might have missed it.

I have been negotiating to rent a house in Amphur Pong, near Pattaya, and the house owner (a Thai) has been advised that with effect from 1st Jan 2011, she will be levied a 12% property tax on the annual rental income.

She is so perturbed by this that she is now seriously considering removing the house from the rental market and will just try to sell the house instead.

She has been told that all house owners will have to pay a local property tax, but that people who rent out will bear the brunt of the tax burden as they will be generating income.

I and the landlord are still looking into this, and of course there is always the possibility of reducing the rental income by having two contracts, but in the meantime I would appreciate it of anyone else has come across this issue and can confirm or otherwise what is happening.

[katabeachbum]

a tax to tessabaan already exists. most solve it by having a written agreement and pay monthly cash. agreement destroyed when deposit refunded

In addition there is a tax to land office on agreements more than 3 years to be registered in land deed

[trogers]

She is so perturbed by this that she is now seriously considering removing the house from the rental market and will just try to sell the house instead.

She has been told that all house owners will have to pay a local property tax' date=' but that people who rent out will bear the brunt of the tax burden as they will be generating income.

[/quote']

The typical Thai wisdom in investment - rather to have zero income than to have income less 12% tax.

Selling the house? Which buyer need not pay tax like her?

[katabeachbum]

She is so perturbed by this that she is now seriously considering removing the house from the rental market and will just try to sell the house instead.

She has been told that all house owners will have to pay a local property tax' date=' but that people who rent out will bear the brunt of the tax burden as they will be generating income.

[/quote']

The typical Thai wisdom in investment - rather to have zero income than to have income less 12% tax.

Selling the house? Which buyer need not pay tax like her?

yeah, why not just make a rental agreement making all applicabel taxes tenants responsibility

[Mobi]

a tax to tessabaan already exists. most solve it by having a written agreement and pay monthly cash. agreement destroyed when deposit refunded

In addition there is a tax to land office on agreements more than 3 years to be registered in land deed

Yes I know about the tax to the land office which is why you will rarely be able to rent a property for more than 3 years at a time.

My understanding on this tax to the Tessabaan in Pong is that they will make their own assessment of the rental value and so stop landlords under-declaring the amount of rent.

The land office have been doing a similar thing for years.

I also understand that they will also target all houses owned by companies, whether or not they are rented out, as they will be 'deemed' to be rented property and thus subject to the property tax.

[Mobi]

She is so perturbed by this that she is now seriously considering removing the house from the rental market and will just try to sell the house instead.

She has been told that all house owners will have to pay a local property tax' date=' but that people who rent out will bear the brunt of the tax burden as they will be generating income.

[/quote']

The typical Thai wisdom in investment - rather to have zero income than to have income less 12% tax.

Selling the house? Which buyer need not pay tax like her?

She is only renting because she has been having a problem finding a buyer.

It is a very desirable property on sale for a very realistic price and I am quite sure it will sell eventually.

In the meantime she is living there and looking after it She doesn't actually need the money, but would like to move back to the South of Thailand.

If she ends up having to pay 60-80k per year in property taxes, I tend to agree with her that she is better of waiting for a buyer.

(You really shouldn't shoot your mouth off and bad mouth Thais before you have all the facts. She is actually a very intelligent, sensible lady.

In any case I did not open this thread so that people could have a go at Thais - I opened it to get more information on a serious subject. Why don't you post your ill-considered comments in Bedlam or the Farang pub/jokes forum?).

[Mobi]

yeah, why not just make a rental agreement making all applicabel taxes tenants responsibility

Because if I, or any renter is aware of the tax, we wouldn't rent at the rate being asked. And if she reduced the rent to cover the cost of the taxes to the renter the amount of income she would generate would not justify the whole business.

Please let's not get into the 'why's and wherefors' of whether she will or will not rent. It's actually irrelevant to the central question.

I can easily find another house, or stay where I am.

The question is: Is my information correct? For if so it will materially affect literally thousands of farangs who own houses through companies - whether or not they rent them out.

Edited August 12, 2010 by Mobi

[katabeachbum]

a tax to tessabaan already exists. most solve it by having a written agreement and pay monthly cash. agreement destroyed when deposit refunded

In addition there is a tax to land office on agreements more than 3 years to be registered in land deed

Yes I know about the tax to the land office which is why you will rarely be able to rent a property for more than 3 years at a time.

My understanding on this tax to the Tessabaan in Pong is that they will make their own assessment of the rental value and so stop landlords under-declaring the amount of rent.

The land office have been doing a similar thing for years.

I also understand that they will also target all houses owned by companies, whether or not they are rented out, as they will be 'deemed' to be rented property and thus subject to the property tax.

Tessabaan already make the assesments of rental value, house value and land value used by Land Office. So why not use them locally too?

I do not know of any new 12% tax starting in 2011, only the existing Tesabaan tax on all rentals/leases which most Tessabaan dont put much effort in getting. perhaps Pong has announced they will focus on it from 2011? Sounds like a good source of income in farang area.

[trogers]

She is so perturbed by this that she is now seriously considering removing the house from the rental market and will just try to sell the house instead.

She has been told that all house owners will have to pay a local property tax' date=' but that people who rent out will bear the brunt of the tax burden as they will be generating income.

[/quote']

The typical Thai wisdom in investment - rather to have zero income than to have income less 12% tax.

Selling the house? Which buyer need not pay tax like her?

She is only renting because she has been having a problem finding a buyer.

It is a very desirable property on sale for a very realistic price and I am quite sure it will sell eventually.

In the meantime she is living there and looking after it She doesn't actually need the money, but would like to move back to the South of Thailand.

If she ends up having to pay 60-80k per year in property taxes, I tend to agree with her that she is better of waiting for a buyer.

(You really shouldn't shoot your mouth off and bad mouth Thais before you have all the facts. She is actually a very intelligent, sensible lady.

In any case I did not open this thread so that people could have a go at Thais - I opened it to get more information on a serious subject. Why don't you post your ill-considered comments in Bedlam or the Farang pub/jokes forum?).

This is no joke. I am a landlord myself.

If she has to pay Bt60-80k for a 12% tax on annual rental value, that means annual rental income would be Bt500k to 660k. We know that Land dept assessment excludes value of furnishing. That would mean a potential annual income of at least Bt720k. That means forgoing an annual income of at least Bt650k to avoid paying the tax.

And I am surprised that you agree with her that she is better off waiting for a buyer, when as you have said - '

She is only renting because she has been having a problem finding a buyer'.

[Mobi]

She is so perturbed by this that she is now seriously considering removing the house from the rental market and will just try to sell the house instead.

She has been told that all house owners will have to pay a local property tax' date=' but that people who rent out will bear the brunt of the tax burden as they will be generating income.

[/quote']

The typical Thai wisdom in investment - rather to have zero income than to have income less 12% tax.

Selling the house? Which buyer need not pay tax like her?

She is only renting because she has been having a problem finding a buyer.

It is a very desirable property on sale for a very realistic price and I am quite sure it will sell eventually.

In the meantime she is living there and looking after it She doesn't actually need the money, but would like to move back to the South of Thailand.

If she ends up having to pay 60-80k per year in property taxes, I tend to agree with her that she is better of waiting for a buyer.

(You really shouldn't shoot your mouth off and bad mouth Thais before you have all the facts. She is actually a very intelligent, sensible lady.

In any case I did not open this thread so that people could have a go at Thais - I opened it to get more information on a serious subject. Why don't you post your ill-considered comments in Bedlam or the Farang pub/jokes forum?).

This is no joke. I am a landlord myself.

If she has to pay Bt60-80k for a 12% tax on annual rental value, that means annual rental income would be Bt500k to 660k. We know that Land dept assessment excludes value of furnishing. That would mean a potential annual income of at least Bt720k. That means forgoing an annual income of at least Bt650k to avoid paying the tax.

And I am surprised that you agree with her that she is better off waiting for a buyer, when as you have said - '

She is only renting because she has been having a problem finding a buyer'.

You are a farang landlord in Thailand?

Hm.....

My dear friend, please read what I have written.

"She doesn't need the money."

If you really must know she was married for many years to a very successful businessman foreigner who was granted Thai citizenship.

He recently and tragically died, but has clearly left her in very good financial shape.

She told me today that there is more to life than money, money money.

You never know when you time is up and if she has to be hassled by getting involved in tax payments of the nature being suggested, she would rather just let matters be and wait for a buyer.

I happen to agree with her because I also don't do a ROI every time I make a decision that may affect my life.

There is such a thing as quality of life.

Who needs the hassle?

Now,

Can we PLEASE get back to the subject under discussion and can you please discuss your farang 'return on property investments' in Thailand in your own thread.

Thank you kindly: :jap:

Go in peace....... to your own little thread.....

Edited August 12, 2010 by Mobi

[trogers]

.

"She doesn't need the money."

If you really must know she was married for many years to a very successful businessman foreigner who was granted Thai citizenship.

He recently and tragically died, but has clearly left her in very good financial shape.

She told me today that there is more to life than money, money money.

You never know when you time is up and if she has to be hassled by getting involved in tax payments of the nature being suggested, she would rather just let matters be and wait for a buyer.

I happen to agree with her because I also don't do a ROI every time I make a decision that may affect my life.

There is such a thing as quality of life.

Who needs the hassle?

Wow...then I can teach you a little farang wisdom and take the hassle off her hands so that she can enjoy her life down South.

Offer to stay in her house and maintain it well and pay all bills and taxes, rent free. She is happy and you are happy. A win-win situation.

What other inputs do you need from calculative farangs like us in the forum?

[katabeachbum]

She is only renting because she has been having a problem finding a buyer.

It is a very desirable property on sale for a very realistic price and I am quite sure it will sell eventually.

In the meantime she is living there and looking after it She doesn't actually need the money, but would like to move back to the South of Thailand.

If she ends up having to pay 60-80k per year in property taxes, I tend to agree with her that she is better of waiting for a buyer.

(You really shouldn't shoot your mouth off and bad mouth Thais before you have all the facts. She is actually a very intelligent, sensible lady.

In any case I did not open this thread so that people could have a go at Thais - I opened it to get more information on a serious subject. Why don't you post your ill-considered comments in Bedlam or the Farang pub/jokes forum?).

This is no joke. I am a landlord myself.

If she has to pay Bt60-80k for a 12% tax on annual rental value, that means annual rental income would be Bt500k to 660k. We know that Land dept assessment excludes value of furnishing. That would mean a potential annual income of at least Bt720k. That means forgoing an annual income of at least Bt650k to avoid paying the tax.

And I am surprised that you agree with her that she is better off waiting for a buyer, when as you have said - '

She is only renting because she has been having a problem finding a buyer'.

You are a farang landlord in Thailand?

Hm.....

My dear friend, please read what I have written.

"She doesn't need the money."

If you really must know she was married for many years to a very successful businessman foreigner who was granted Thai citizenship.

He recently and tragically died, but has clearly left her in very good financial shape.

She told me today that there is more to life than money, money money.

You never know when you time is up and if she has to be hassled by getting involved in tax payments of the nature being suggested, she would rather just let matters be and wait for a buyer.

I happen to agree with her because I also don't do a ROI every time I make a decision that may affect my life.

There is such a thing as quality of life.

Who needs the hassle?

Now,

Can we PLEASE get back to the subject under discussion and can you please discuss your farang 'return on property investments' in Thailand in your own thread.

Thank you kindly: :jap:

Go in peace....... to your own little thread.....

Wow, most starting a thread is looking for advice, this OP is obviously not. I am also a farang landlord in Thailand, but I am out of this thread:rolleyes: .

[Mobi]

My God, you are so full of yourself.

You think you know it all, yet you have not contributed single piece of useful information on the subject posted.

You have even completely missed the point about companies owning houses.

It matters not a wit if her company lets me stay there free of charge. The company will still be assessed property tax on the going rent. (And yes it is in a company name; She and her son are shareholders, because that makes it easier for her to sell to a farang, as I'm sure you know, as you are in the business.)

If I tell you more about her and me I am sure you will come up with yet more pearls of wisdom from your estate agent's handbook.

All I want to know is about local property taxes. I am not interested in any advice on personal finances or property management. If I was,I would have stated so in my original post.

I am not in the least bit interested in homespun wisdom from one of the many who is probably operating illegally in this country.

Do you have a work permit to operate as a landlord renting property? I suggest you worry about that rather than give advice to people you have never met and know nothing about.

Save it for your clients and tenants. I'm sure they will lap it up.

And if you've got anything useful to contribute then do so, if not; butt out- I don't give a fig what you know about the property market.

For every house in Thailand, there's a budding farang estate agent/landlord who knows it all.

[katabeachbum]

My God, you are so full of yourself.

All I want to know is about local property taxes.

So why seek wisdom from us in TV? Ask the local tax authorities:)

BTW, you must be british:D

Sorry OP, had a delicious pizza tonight, and just couldnt resist entering your lovely thread again:rolleyes:

Edited August 12, 2010 by katabeachbum

[Mobi]

My God, you are so full of yourself.

All I want to know is about local property taxes.

So why seek wisdom from us in TV? Ask the local tax authorities:)

BTW, you must be british:D

Sorry OP, had a delicious pizza tonight, and just couldnt resist entering your lovely thread again:rolleyes:

I thought you were long gone.

Here's a bit of Mobi homespun wisdom:

Never trust lawyers, estate agents or tax men.

And some more sage advice from an old Thai hand...

Pizza is very unhealthy. You should be eating kow tom or tom jute this time of night.

Pizza will just sit in you stomach and give you bad dreams about all your properties going up in flames and your insurers going bust.

[trogers]

Do you have a work permit to operate as a landlord renting property?

Pearls of wisdom...from too much kaotom...

Next you will be telling us a work permit is needed to deposit money in the bank to earn interest.

[Mobi]

Do you have a work permit to operate as a landlord renting property?

Pearls of wisdom...from too much kaotom...

Next you will be telling us a work permit is needed to deposit money in the bank to earn interest.

You need a work permit to do any work whatsoever in Thailand, paid or otherwise and that includes operating a business, being a shareholder in a business or being a landlord who rents out property, or even mowing your own lawn!

Don't take my word for it, go to the labour department, explain to them exactly what your function is as regards your house renting business is concerned and ask them if you need a work permit.

You might be well advised to take a large holdall of money with you, together with some emergency rations, as your liberty in this fair land could well be in jeopardy.

Good luck.

[trogers]

Do you have a work permit to operate as a landlord renting property?

Pearls of wisdom...from too much kaotom...

Next you will be telling us a work permit is needed to deposit money in the bank to earn interest.

You need a work permit to do any work whatsoever in Thailand, paid or otherwise and that includes operating a business, being a shareholder in a business or being a landlord who rents out property, or even mowing your own lawn!

Don't take my word for it, go to the labour department, explain to them exactly what your function is as regards your house renting business is concerned and ask them if you need a work permit.

You might be well advised to take a large holdall of money with you, together with some emergency rations, as your liberty in this fair land could well be in jeopardy.

Good luck.

Gee...wees...do they have a cell large enough to hold all those foreign shareholders and directors rounded up from a company's AGM?

[Mobi]

Do you have a work permit to operate as a landlord renting property?

Pearls of wisdom...from too much kaotom...

Next you will be telling us a work permit is needed to deposit money in the bank to earn interest.

You need a work permit to do any work whatsoever in Thailand, paid or otherwise and that includes operating a business, being a shareholder in a business or being a landlord who rents out property, or even mowing your own lawn!

Don't take my word for it, go to the labour department, explain to them exactly what your function is as regards your house renting business is concerned and ask them if you need a work permit.

You might be well advised to take a large holdall of money with you, together with some emergency rations, as your liberty in this fair land could well be in jeopardy.

Good luck.

Gee...wees...do they have a cell large enough to hold all those foreign shareholders and directors rounded up from a company's AGM?

I'd be careful if I were you not to treat this subject so flippantly as many farangs, now sitting in Thai jails, have found to their cost.

The strict letter of the law means that thousands could potentially caught up in this kind of 'illegal working' but the reality is that only those who are actively engaged in businesses such as managing or holding substantial shares in companies that are involved in the property rental business can be caught out if they put their heads above the parapet, or if someone with a grudge reports them to the local immigration office.

Even the husbands of wives who own bars have been arrested for shaking the hands of customers as it is considered to be 'working'.

As it is a known fact that officials from immigration and government departments actively read these threads, I think you have been very foolish in stating you are in the property renting business and I strongly recommend you change your nickname and refrain from such vainglorious posts in the future.

My own little piece of homespun wisdom, my friend....

[trogers]

Pearls of wisdom...from too much kaotom...

Next you will be telling us a work permit is needed to deposit money in the bank to earn interest.

You need a work permit to do any work whatsoever in Thailand, paid or otherwise and that includes operating a business, being a shareholder in a business or being a landlord who rents out property, or even mowing your own lawn!

Don't take my word for it, go to the labour department, explain to them exactly what your function is as regards your house renting business is concerned and ask them if you need a work permit.

You might be well advised to take a large holdall of money with you, together with some emergency rations, as your liberty in this fair land could well be in jeopardy.

Good luck.

Gee...wees...do they have a cell large enough to hold all those foreign shareholders and directors rounded up from a company's AGM?

I'd be careful if I were you not to treat this subject so flippantly as many farangs, now sitting in Thai jails, have found to their cost.

The strict letter of the law means that thousands could potentially caught up in this kind of 'illegal working' but the reality is that only those who are actively engaged in businesses such as managing or holding substantial shares in companies that are involved in the property rental business can be caught out if they put their heads above the parapet, or if someone with a grudge reports them to the local immigration office.

Even the husbands of wives who own bars have been arrested for shaking the hands of customers as it is considered to be 'working'.

As it is a known fact that officials from immigration and government departments actively read these threads, I think you have been very foolish in stating you are in the property renting business and I strongly recommend you change your nickname and refrain from such vainglorious posts in the future.

My own little piece of homespun wisdom, my friend....

Oh...I am getting worried...wondering if they will issue me a 2nd work permit, as a landlord, with the first being an MD of my company...

[Mobi]

Oh...I am getting worried...wondering if they will issue me a 2nd work permit, as a landlord, with the first being an MD of my company...

You should be worried. I'll lay odds that you don't strictly follow the conditions of your work permit - if you do indeed hold one.

And we all know how much jealousy and back-biting, not to say outright mafia violencethere is in the Thai property industry.

He who laughs last.........my property renting, work permit holding, esteemd MD.....

M'lord, M'Lord.....

[Rimmer]

We do seem to be getting a long way off the original topic don't we? As a reminder it is:

Property Tax Of To Be Levied By Local Authorities. Wef 1/1/11 Amphur Pong to charge 12% of annual rent as local property tax

[thaicbr]

OP with that title in mind go and ask the local authorities in Amphur Pong. They would give you the details i would think. Or have you already got a mai mee from them.

Also you said 'SHE HAS BEEN ADVISED' who advised her?

I do remember that there is a new land tax referring to undeveloped land and EMPTY houses.

Edited August 13, 2010 by thaicbr

[oracle]

I heard of an overhaul of the current housing and land tax. Under the new housing and land tax every property will be charged:

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 supposed to be maximum tax rates that can be charged by the local authorities. The appraised value of properties is adjusted again by the Treasury Department in 2011, so maybe that will be the date they start with the new tax?

[trogers]

I heard of an overhaul of the current housing and land tax. Under the new housing and land tax every property will be charged:

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 supposed to be maximum tax rates that can be charged by the local authorities. The appraised value of properties is adjusted again by the Treasury Department in 2011, so maybe that will be the date they start with the new tax?

This new tax rate is more generous than the old one.

Assuming gross rental returns is at 10%, A Bt10m property would command annual rental income of Bt1m. New tax on rental property is Bt50k/year, or 5% of annual rental income.

[Mobi]

I heard of an overhaul of the current housing and land tax. Under the new housing and land tax every property will be charged:

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 supposed to be maximum tax rates that can be charged by the local authorities. The appraised value of properties is adjusted again by the Treasury Department in 2011, so maybe that will be the date they start with the new tax?

Thank you. That sounds like good information.

So on an owner/occupied property valued at 5 Million Baht, the owner would pay 5,000 Baht per annum and and the owner of a commercial property (which would include rental properties,)the owner would pay 25,000 Baht.

Farang owners who rent their company-owned property back to them, need to look into this as they may be liable to an annual 0.5% tax on the value of their property.

Next week I will check this out for myself and report back.

Thank God we seem to have rid ourselves of the bullshit brigade.

Edited August 14, 2010 by Mobi

[Mobi]

I heard of an overhaul of the current housing and land tax. Under the new housing and land tax every property will be charged:

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 supposed to be maximum tax rates that can be charged by the local authorities. The appraised value of properties is adjusted again by the Treasury Department in 2011, so maybe that will be the date they start with the new tax?

This new tax rate is more generous than the old one.

Assuming gross rental returns is at 10%, A Bt10m property would command annual rental income of Bt1m. New tax on rental property is Bt50k/year, or 5% of annual rental income.

I think you may be confused. There will be no change to existing taxes. The new local tax does not replace any existing tax.

The new tax will be in addition to taxes that you already pay.

[oracle]

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

Farang owners who rent their company-owned property back to them, need to look into this as they may be liable to an annual 0.5% tax on the value of their property.

Next week I will check this out for myself and report back.

You can leave the 'who rent their company-owned property back to them' !!! Every foreigner who owns land and house through a company must pay under the current land and house tax, irrespective if the pay rent to the company. I recently met a guy who had to pay over 100,000 baht charged just after he transferred the house from the company to his name.

I REALLY BELIEVE the Thai government will get foreigners owning properties through companies and fine them for not paying building and land tax under the current building an land tax, BEFORE the the new tax law starts.

[monty]

Have just had a chat with our accountant.

The current situation is as follows: Building and Land Tax:

Everybody who rents out his/her house/building, company owned or privately owned, is required to pay 12.5% on the rental income (actual or assessed).

It is the responsibility of the building owner to pay this tax, and he has to do this on a yearly base with the deadline at the end of February.

There is also a "Local maintenance tax", but this amounts to maximum a few hundred Baht/year.

Starting sometime in the future (but my accountant was not sure when) the following will come into effect (as posted by Oracle before):

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.

So, to the OP, the landlady you have been talking to should have paid that tax long time already, but only on actual or assessed received rents. The local authorities have never really chased up that tax, as the responsibility always has been on the owners to report the income and pay the tax on it.

Probably as it is a labor intensive thing to start ringing at each door, check who lives in it and whether that person is the actual owner, or a renter. And if it is indeed rented out property, they would still need to find the owner!

What they are now doing is, after being forced by higher authorities to chase up more tax revenue, is indeed actually knocking on doors, finding out if the owner lives there (no tax), or not. If they think tax has to be paid, the local district will make an assessment and serve the owner with this. Then the owner has two weeks to either agree or disagree with the assessment. And pay the tax on whatever the owner/authority reach an agreement on.

So, in the end, as with many things tax in Thailand (especially on a local level), negotiation is the key word, as the official has the power to accept an assessed rental income (which might or might not be realistic).

Which is exactly what my accountant did for us. The authorities came up with an assessment, our accountant made a much lower counter offer (based on low occupancy average) accompanied with some kind of gift, after which a very acceptable agreement was reached which practically works out to much much less then 12.5% actual tax

The biggest difference with the new tax is that it will also be due for owners living in their own place (albeit at a lower rate), and it will be based on appraised value instead of on actual income.

Which probably will make it more expensive for most, as the appraised values will have minimum levels (probably as used by land and house), as opposed to actual income where they could always state a very low occupancy at a low rental rate. This takes out a lot of the leeway the local officials had on assessing actual income!

But overall it should not be that bad, as the minimum levels used by Land and House always have been a fair bit lower then actual values!

[Mobi]

Thanks for all that Monty.

It pretty much ties in with other serious replies, and also with my own brief enquiries to the Pong amphur office,(who mentioned the 12% on rental income), and also what my potential landlady was told as regards it being levied on property values.

She was advised that the district offices will start to seriously collect this local tax wef 1/1/11.

The landlady has told me today that she was told by her lawyer that she will have to pay a minimum of 30k and it could be much higher, and in view of the uncertainty she has withdrawn the house from the rental market and will hope to sell instead.

What I don't think she has realised is that as the house is owned through a company, she will probably be assessed as a commercial property anyway. But maybe not as she is a Thai and she is living there, having a majority of shares in the company which owns the house.

Any thoughts on this - just for interest, as I have given up on her and will now seek an alternative property to rent.

This subject could be a 'smoking gun' as presumably it will affect the tens of thousands of house owners who currently own their houses through companies.

I assume they will all be deemed commercial properties and will be assessed on 12% of their deemed rental income/and or property values at 0.5%

Many of these houses are empty, awaiting sale and that will further complicate the problem as far as foreigners are concerned.

Of course, only time will tell how these taxes will be administered and it could well be another 'storm in a teacup'. But somehow I doubt it - the writing seems to be on the wall to me - there will be an imposition of what could be considered to be penal property taxes on all company owned houses which will mainly target foreigners..

For quite a while now I have wondered if I made the right decision to close my company and transfer my house to my wife, but with me holding a life time right of abode via a usufruct, which is registered on the land title deed (which is in my possession).

It cost me a quite a bit, all told, and the ever growing number of foreigners buying houses via the company route has caused me to think that I may have panicked unnecessarily.

Now it seems that I may have made the right decision after all.

As I say - only time will tell, and in the meantime I would appreciate any serious and informed comments or information.

Please let's not discuss my potential lanlord - that subject is dead and totally irrelevant.

And I doubt if it is going to be that easy for the current house owners to do what I did.

These officials are making life more and more difficult and expensive all the time.