Property ownership/inheritance taxes on the way?

[KittenKong]

I've been expecting these for ages as they as so easy and cheap to collect, and it looks like they may be about to happen thanks to the NCPO.

 

http://www.thaivisa.com/forum/topic/747871-inheritance-tax-gets-ncpo-nod/

 

The 0.1% rate suggested is obviously quite low at only 1000B per 1 million Baht of appraised value on ownership, but I would expect that to be the thin end of the wedge. Maybe this will provide some incentive for speculators not to hang on to things.

[mccw]

No incentive not to speculate on land at all. Look at the UK; we have 40% inheritance tax after the free allowance.
When introduce such taxes it just creates more work for crafty lawyers to find legal means to avoid them.
Waste of time.
Like wouldn't everybody just put their kids names on the Chanort in advance and presto no tax due coz they are already legal owners


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[Senechal]

At the proposed starting rate, the effect would be negligible on property values. But as many have said, the starting rate is likely just a "foot in the door". Rates would likely rise to internationally standard rates over the coming years.

In Thailand, a huge percentage of real-estate is owned by wealthy Thai investors who "park" money in real estate because the carrying costs are minimal. With the introduction of real-estate taxes, this 'buy and hold' strategy becomes much more difficult. At the very least, those properties would need to be rented-out to offset the tax burden.

We're still a long way from that, but the writing is likely in the wall at this point.

[AyG]

Property ownership/inheritance taxes on the way? Whatever next? Turkeys voting for Christmas?

[Senechal]

Property ownership/inheritance taxes on the way? Whatever next? Turkeys voting for Christmas?

 

 

Except Thailand isn't a democracy anymore.  So it's not nearly as unlikely as it sounds.  And the government needs revenue desperately.  I give this a very small chance of not happening.

[AyG]

Property ownership/inheritance taxes on the way? Whatever next? Turkeys voting for Christmas?

 
Except Thailand isn't a democracy anymore.  So it's not nearly as unlikely as it sounds.  And the government needs revenue desperately.  I give this a very small chance of not happening.

The military top brass is mostly very rich. I think it most unlikely they're going to vote for substantially higher taxes for themselves.

They've already said they're going to raise VAT back to 10% which will bring in a lot of additional revenue.

[trogers]

No incentive not to speculate on land at all. Look at the UK; we have 40% inheritance tax after the free allowance.
When introduce such taxes it just creates more work for crafty lawyers to find legal means to avoid them.
Waste of time.
Like wouldn't everybody just put their kids names on the Chanort in advance and presto no tax due coz they are already legal owners


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Inheritance tax should be kept at a minimal level.

Property tax should be high. We don't care who owns it, but the asset should be economically productive and generates an annual income worthy of the land. Edited August 10, 2014 by trogers