Thai minister: New land and house taxes bill is yet to be finalized

[webfact]

New land and house taxes bill is yet to be finalized

BANGKOK: -- The Finance Ministry is expected to finalize this month the new land and house taxes bill to be submitted to the cabinet for consideration.

Finance Minister Sommai Phasi said that it was yet to be concluded the minimum value of a house which is to be taxed and the value of the house which will be exempted from taxation.

It was proposed that a house plus a land plot on which the house is located which are worth not more than one million baht will not be taxed and the one which is worth between 1-2 million baht will be taxed half of the tax rate whereas the one which is worth more than three million baht will be taxed the full amount of the tax rate.

Three tax rates have been proposed: 0.5 percent for land for farming and for residential purposes but in the initial period land for residential purpose will be taxed just 0.01 percent. The proposed tax rate for land for commercial purpose is 2 percent whereas the tax ceiling of unutilized land is 4 percent.

As for unutilized land, the owners will be given three years to utilize the land failing that they will be taxed at progressive rates.

Finance permanent secretary Mr Rangsan Sriworasart said that Deputy Prime Minister Pridiyathorn Devakula had voiced his support for the idea of imposing taxes on land and houses.

Source: http://englishnews.thaipbs.or.th/new-land-and-house-taxes-bill-is-yet-to-be-finalized


-- Thai PBS 2015-03-02

[sungod]

Interesting, how about land used for residential purposes but owned in a company name?

Commercial or residential I wonder?

[realenglish1]

This is an opportunity. Create a Farang land Tax. Let them own a house but tax it at a higher level if they have it in their name

Lets say double what locals have to pay. This will allow home ownership and at the same time create a good tax base for the government.

Same as charging more for a Farang to buy a condo

[ColdSingha]

i wonder how the land valuations will be worked out? some grannies in bangkok with 100 year old family properties in prime locations could be in for a shock

[ColdSingha]

Interesting, how about land used for residential purposes but owned in a company name?

Commercial or residential I wonder?

2nd properties (buy to lets) also

[cmboy]

i wonder how the land valuations will be worked out? some grannies in bangkok with 100 year old family properties in prime locations could be in for a shock

Indeed, it is big shock for many. Same has happened on many other countries when same/similar tax has implemented.

Very hard for many older/retarded people when they face truth that they don't have afford for their hard earned land/house.

[CWMcMurray]

Would definitely change some things .... As all of a sudden, it becomes pretty important to rent or utilize property and land in high value areas...

There is a piece of property that has a run down and falling apart house on it just off off of Suk that I pass on the way to work for many years now...

All of a sudden, the land owner may face hundreds of thousands of THB every year ... That would likely force their hand to do something with the property pretty quick

[tif]

This is, as is everything else here. Bullsh1t. Next.

[novo58]

One alternative would be zero tax for one residential property( the family home)..................then tax investment, holiday properties accordingly .

[khunPer]

The article says:

»It was proposed that a house plus a land plot on which the house is located which are worth not more than one million baht will not be taxed and…«

-and:

»Three tax rates have been proposed: 0.5 percent for land for farming and for residential purposes but in the initial period land for residential purpose will be taxed just 0.01 percent. The proposed tax rate for land for commercial purpose is 2 percent…«

So if house+land is worth or valued at for example 4 million baht – which is not at all unusual for house+land a farang lives in at a major holiday destination – the tax shall be:

0.5% of 4,000,000 baht = 20,000 baht a year…?

However in the initial period (of how long time span) just 0.01% or just 400 baht on a 4 million baht property – that’s quite a difference...

Some, or perhaps even many, lives in a 10 million baht villa, that’s some 50,000 baht extra expense a year.

So those (of us) living in a house that may be worth more, shall prepare us for a tax-chock – when 0.5 percent tax comes in force – and as an above poster mentioned, will a company owned land, leased out for residential purpose be taxed at 2%, and the value of the house at 0.5%, or…?

Wonder how much the high priced villas in range of 20 to 50 million – and way up in hundreds of millions – will decrease in value when suddenly taxed from a half till two percent every year...?

Ops, forgot those with villas worth hundred of millions probably don’t care…

[Daniel Ingalls]

Thailand is learning fast how to screw the people with taxes! Sale tax at Malls for merchandise now at 7% and want to raise it to 8%

The new-bee of property tax on houses worth 1-2 million baht, and full rate of tax for homes over 3 million baht. They know darn well

most foreigners wives own property (homes) in that price range. Look at Chiang Mai, Thousands of new home developments mostly

bought by foreigners. Hey, wake up PM, start collecting tax off of the millions of street venders in Bangkok. Start taxing 1/2 baht on every

bottle of soda pop and coke sold through out the country. If you want to raise taxes, hit everyone, not just the ones well off. How about 1baht tax

on every roll of toilet paper? Everyone should pay on that. 1baht tax on every tube of toothpaste sold in the country. How about taxing all those small

Mom and Pop stores collect the 7% tax on merchandise they supposedly should be collecting for you, but haven't lately. When it comes to; zoo's

Museums, Parks, Points of interest along side roads, the foreigner get charged more than Thais. At every turn we make, someone has their hand out

for more money. Is this the typical attitude of the Thais, and now the Thai Government is doing the same thing on Land and House tax increase. Who is going to value the the property in question? The government? Are they going to asses by who is living in the house? Foreigners, Value of property goes up?(more taxes)

I'm sure the Thai Government will find ways to return this tax back to the Thai people in refunds, but forget for those who are not legal residents

of Thailand. Here is a new phrase for you "Tax discrimination based upon residency." If you're not a Thai citizen you get over charged, over taxed,

and because you came to Thailand to see all the beautiful sights and sounds, you pay extra!........I don't know if I broke any rules in this post, but

the truth has to come out from somewhere!

[cmboy]

This is, as is everything else here. Bullsh1t. Next.

Existance of this tax was/is only question of time. Pretty much expected and also postponed for long time.

[CWMcMurray]

Have to disagree with much of the below post...

This tax has nothing to do with race ... It is not designed to 'get us foreigners'..

It is based on trying to get the more wealthy to pay more in taxes.. Which is a progressive tax system... Some agree with these types of taxes and some don't.. But nothing to do with foreigners

It doesn't say foreigners pay 2 % and Thai's pay 0.5%...

When it comes to homes over 3 million , the majority of home owners in Thailand are Thai's not foreigners...

When you get to the homes +10 million and +50 mill.... Even less foreigners invoked (as a percentage)... As most of these super top end homes are owned by the Thai wealthy or are owned by maybe those who are not 'cash rich', but own a piece of land in Bangkok that has been handed down for generations that may be worth 100 mil+

In our Moo Baan for example(houses 3.3-4.5 mil)... About 150+ houses and only a couple foreigners in the bunch... But of course even if a foreigner is involved, the owners are the Thai wives or Thai companies... So would be considered Thai anyway

In fact, since foreigners can't own houses or land... Seems inconceivable that this is aimed at foreigners in any way shape or form...

Thailand is learning fast how to screw the people with taxes! Sale tax at Malls for merchandise now at 7% and want to raise it to 8%

The new-bee of property tax on houses worth 1-2 million baht, and full rate of tax for homes over 3 million baht. They know darn well

most foreigners wives own property (homes) in that price range. Look at Chiang Mai, Thousands of new home developments mostly

bought by foreigners. Hey, wake up PM, start collecting tax off of the millions of street venders in Bangkok. Start taxing 1/2 baht on every

bottle of soda pop and coke sold through out the country. If you want to raise taxes, hit everyone, not just the ones well off. How about 1baht tax

on every roll of toilet paper? Everyone should pay on that. 1baht tax on every tube of toothpaste sold in the country. How about taxing all those small

Mom and Pop stores collect the 7% tax on merchandise they supposedly should be collecting for you, but haven't lately. When it comes to; zoo's

Museums, Parks, Points of interest along side roads, the foreigner get charged more than Thais. At every turn we make, someone has their hand out

for more money. Is this the typical attitude of the Thais, and now the Thai Government is doing the same thing on Land and House tax increase. Who is going to value the the property in question? The government? Are they going to asses by who is living in the house? Foreigners, Value of property goes up?(more taxes)

I'm sure the Thai Government will find ways to return this tax back to the Thai people in refunds, but forget for those who are not legal residents

of Thailand. Here is a new phrase for you "Tax discrimination based upon residency." If you're not a Thai citizen you get over charged, over taxed,

and because you came to Thailand to see all the beautiful sights and sounds, you pay extra!........I don't know if I broke any rules in this post, but

the truth has to come out from somewhere!

[mango66]

i wonder how the land valuations will be worked out? some grannies in bangkok with 100 year old family properties in prime locations could be in for a shock

100 years old !!

they will not be taxed !

Army, police, GVT, Senators, MPs, party, hm, they will not be taxed;

[mango66]

I am happy with this figures !!

below 1 mill is 1st category

1 - 2 mill is 2nd category

3 mill up is 3rd category

as my condo is worth 2,5 mill, it dont fall in any this category, so no tax 55555555555555555555

[Daniel Ingalls]

At 2.5 million you are in the 2nd category.......and you will be taxed!

I am happy with this figures !!

below 1 mill is 1st category

1 - 2 mill is 2nd category

3 mill up is 3rd category

as my condo is worth 2,5 mill, it dont fall in any this category, so no tax 55555555555555555555

[Daniel Ingalls]

........And where may I ask the Thai wife get the funds for taxes......Hummmmm ...foreign husband of course. Don't be nieeve. I see a lot of Thais buying these 2.5-3.0 million baht houses and about 1/3 of them get empty due to foreclosures with in 2 years. So, In one year add the tax, and watch another round of foreclosure

start. And the irony of the whole mess, the banks are in no rush to put the houses back on market. Unlike the USA, they try to re-sell it as if it has never been

financed for the original price instead of asking for the remaining principal. In my housing area about 1/3 are empty due to foreclosures.

Have to disagree with much of the below post...

This tax has nothing to do with race ... It is not designed to 'get us foreigners'..

It is based on trying to get the more wealthy to pay more in taxes.. Which is a progressive tax system... Some agree with these types of taxes and some don't.. But nothing to do with foreigners

It doesn't say foreigners pay 2 % and Thai's pay 0.5%...

When it comes to homes over 3 million , the majority of home owners in Thailand are Thai's not foreigners...

When you get to the homes +10 million and +50 mill.... Even less foreigners invoked (as a percentage)... As most of these super top end homes are owned by the Thai wealthy or are owned by maybe those who are not 'cash rich', but own a piece of land in Bangkok that has been handed down for generations that may be worth 100 mil+

In our Moo Baan for example(houses 3.3-4.5 mil)... About 150+ houses and only a couple foreigners in the bunch... But of course even if a foreigner is involved, the owners are the Thai wives or Thai companies... So would be considered Thai anyway

In fact, since foreigners can't own houses or land... Seems inconceivable that this is aimed at foreigners in any way shape or form...

Thailand is learning fast how to screw the people with taxes! Sale tax at Malls for merchandise now at 7% and want to raise it to 8%
The new-bee of property tax on houses worth 1-2 million baht, and full rate of tax for homes over 3 million baht. They know darn well
most foreigners wives own property (homes) in that price range. Look at Chiang Mai, Thousands of new home developments mostly
bought by foreigners. Hey, wake up PM, start collecting tax off of the millions of street venders in Bangkok. Start taxing 1/2 baht on every
bottle of soda pop and coke sold through out the country. If you want to raise taxes, hit everyone, not just the ones well off. How about 1baht tax
on every roll of toilet paper? Everyone should pay on that. 1baht tax on every tube of toothpaste sold in the country. How about taxing all those small
Mom and Pop stores collect the 7% tax on merchandise they supposedly should be collecting for you, but haven't lately. When it comes to; zoo's
Museums, Parks, Points of interest along side roads, the foreigner get charged more than Thais. At every turn we make, someone has their hand out
for more money. Is this the typical attitude of the Thais, and now the Thai Government is doing the same thing on Land and House tax increase. Who is going to value the the property in question? The government? Are they going to asses by who is living in the house? Foreigners, Value of property goes up?(more taxes)
I'm sure the Thai Government will find ways to return this tax back to the Thai people in refunds, but forget for those who are not legal residents
of Thailand. Here is a new phrase for you "Tax discrimination based upon residency." If you're not a Thai citizen you get over charged, over taxed,
and because you came to Thailand to see all the beautiful sights and sounds, you pay extra!........I don't know if I broke any rules in this post, but
the truth has to come out from somewhere!

[Daniel Ingalls]

This obscured.....................The reason most people from the USA, UK, Australia, and New Zealand is because the cost of living in Thailand is much cheap. But lately at every turn the prices go up in the grocery stores. At the Malls in Bangkok I see a lot of people in the stores, but buy very little. They just spend the day in the air conditioned Mall. Most are on a tight budget and rarely spend more that 1,000 baht. Don't encourage this farang pay more! When I want to buy something I ask what is the Thai price, not farang price, I will not buy. Do not encourage this duel pricing. To me its discrimination.

This is an opportunity. Create a Farang land Tax. Let them own a house but tax it at a higher level if they have it in their name

Lets say double what locals have to pay. This will allow home ownership and at the same time create a good tax base for the government.

Same as charging more for a Farang to buy a condo

[northernjohn]

Well a tax on all property worth a house on it would help owners to get off their ass and sell it rather than leaving it empty. Here in Chiang Mai there are many houses sitting vacant because there is no cost to let them sit.

[Daniel Ingalls]

Well. I can agree with you on that. If I am correct on this, if the property in in a limbo state (being foreclosed) the bank is not obligated to pay the annual maintenance, Security fees as the owners of the surrounding houses do. Its passed on to the new owners after they take possession of the property. Its kind of

hidden from the buyer. Only if the buy asks for what leans are there on the house before signing on the dotted line will they know! And run like hell out of the deal!

There will be no end to this house tax. San Kampang, and Chiang Mai providence will also want to get into this tax levying scheme. Thai government is learning quickly how to do taxes like Europe and USA. Once implemented there is no end in sight! And it is always the middle class who pays the most, yet receives the least in entitlements. This new young generation of Thais, are quickly becoming the new credit card debt holders. They spending way more than they can handle, and any large tax on homes will definitely put a blow to their budget. Bankruptcies are not an option I don't think in Thailand?

Well a tax on all property worth a house on it would help owners to get off their ass and sell it rather than leaving it empty. Here in Chiang Mai there are many houses sitting vacant because there is no cost to let them sit.

[JMWPACIFIC]

Thailand is learning fast how to screw the people with taxes! Sale tax at Malls for merchandise now at 7% and want to raise it to 8%

The new-bee of property tax on houses worth 1-2 million baht, and full rate of tax for homes over 3 million baht. They know darn well

most foreigners wives own property (homes) in that price range. Look at Chiang Mai, Thousands of new home developments mostly

bought by foreigners. Hey, wake up PM, start collecting tax off of the millions of street venders in Bangkok. Start taxing 1/2 baht on every

bottle of soda pop and coke sold through out the country. If you want to raise taxes, hit everyone, not just the ones well off. How about 1baht tax

on every roll of toilet paper? Everyone should pay on that. 1baht tax on every tube of toothpaste sold in the country. How about taxing all those small

Mom and Pop stores collect the 7% tax on merchandise they supposedly should be collecting for you, but haven't lately. When it comes to; zoo's

Museums, Parks, Points of interest along side roads, the foreigner get charged more than Thais. At every turn we make, someone has their hand out

for more money. Is this the typical attitude of the Thais, and now the Thai Government is doing the same thing on Land and House tax increase. Who is going to value the the property in question? The government? Are they going to asses by who is living in the house? Foreigners, Value of property goes up?(more taxes)

I'm sure the Thai Government will find ways to return this tax back to the Thai people in refunds, but forget for those who are not legal residents

of Thailand. Here is a new phrase for you "Tax discrimination based upon residency." If you're not a Thai citizen you get over charged, over taxed,

and because you came to Thailand to see all the beautiful sights and sounds, you pay extra!........I don't know if I broke any rules in this post, but

the truth has to come out from somewhere!

According to this, this is just another scheme to get the farang. Paranoid?

This is no different than a progressive tax in many home countries and is geared to financing the government by those well over the poverty threshold.

[Daniel Ingalls]

How about a large tax on those beauty lotions that make your skin white and lotions to make your hair glow? Thai girls/woman spend a lot of money

on these products. Even those who are supposedly poor manage to buy such products. I don't understand these Thai girls, a golden brown skin looks beautiful

on thai girls! Could it be they don't want people thinking they might be laborers in a rice paddy? Or is it just the media, and want to look more Korean with white skin? Watch Thai TV, most commercials are for bleaching skin, and moisturizers for face and arms. Put a 10 baht tax on all of theses products which should be labeled a luxury item.

Thailand is learning fast how to screw the people with taxes! Sale tax at Malls for merchandise now at 7% and want to raise it to 8%

The new-bee of property tax on houses worth 1-2 million baht, and full rate of tax for homes over 3 million baht. They know darn well

most foreigners wives own property (homes) in that price range. Look at Chiang Mai, Thousands of new home developments mostly

bought by foreigners. Hey, wake up PM, start collecting tax off of the millions of street venders in Bangkok. Start taxing 1/2 baht on every

bottle of soda pop and coke sold through out the country. If you want to raise taxes, hit everyone, not just the ones well off. How about 1baht tax

on every roll of toilet paper? Everyone should pay on that. 1baht tax on every tube of toothpaste sold in the country. How about taxing all those small

Mom and Pop stores collect the 7% tax on merchandise they supposedly should be collecting for you, but haven't lately. When it comes to; zoo's

Museums, Parks, Points of interest along side roads, the foreigner get charged more than Thais. At every turn we make, someone has their hand out

for more money. Is this the typical attitude of the Thais, and now the Thai Government is doing the same thing on Land and House tax increase. Who is going to value the the property in question? The government? Are they going to asses by who is living in the house? Foreigners, Value of property goes up?(more taxes)

I'm sure the Thai Government will find ways to return this tax back to the Thai people in refunds, but forget for those who are not legal residents

of Thailand. Here is a new phrase for you "Tax discrimination based upon residency." If you're not a Thai citizen you get over charged, over taxed,

and because you came to Thailand to see all the beautiful sights and sounds, you pay extra!........I don't know if I broke any rules in this post, but

the truth has to come out from somewhere!

According to this, this is just another scheme to get the farang. Paranoid?

This is no different than a progressive tax in many home countries and is geared to financing the government by those well over the poverty threshold.

[Daniel Ingalls]

How about a large tax on those beauty lotions that make your skin white and lotions to make your hair glow? Thai girls/woman spend a lot of money

on these products. Even those who are supposedly poor manage to buy such products. I don't understand these Thai girls, a golden brown skin looks beautiful

on thai girls! Could it be they don't want people thinking they might be laborers in a rice paddy? Or is it just the media, and want to look more Korean with white skin? Watch Thai TV, most commercials are for bleaching skin, and moisturizers for face and arms. Put a 10 baht tax on all of theses products which should be labeled a luxury item.

Thailand is learning fast how to screw the people with taxes! Sale tax at Malls for merchandise now at 7% and want to raise it to 8%

The new-bee of property tax on houses worth 1-2 million baht, and full rate of tax for homes over 3 million baht. They know darn well

most foreigners wives own property (homes) in that price range. Look at Chiang Mai, Thousands of new home developments mostly

bought by foreigners. Hey, wake up PM, start collecting tax off of the millions of street venders in Bangkok. Start taxing 1/2 baht on every

bottle of soda pop and coke sold through out the country. If you want to raise taxes, hit everyone, not just the ones well off. How about 1baht tax

on every roll of toilet paper? Everyone should pay on that. 1baht tax on every tube of toothpaste sold in the country. How about taxing all those small

Mom and Pop stores collect the 7% tax on merchandise they supposedly should be collecting for you, but haven't lately. When it comes to; zoo's

Museums, Parks, Points of interest along side roads, the foreigner get charged more than Thais. At every turn we make, someone has their hand out

for more money. Is this the typical attitude of the Thais, and now the Thai Government is doing the same thing on Land and House tax increase. Who is going to value the the property in question? The government? Are they going to asses by who is living in the house? Foreigners, Value of property goes up?(more taxes)

I'm sure the Thai Government will find ways to return this tax back to the Thai people in refunds, but forget for those who are not legal residents

of Thailand. Here is a new phrase for you "Tax discrimination based upon residency." If you're not a Thai citizen you get over charged, over taxed,

and because you came to Thailand to see all the beautiful sights and sounds, you pay extra!........I don't know if I broke any rules in this post, but

the truth has to come out from somewhere!

According to this, this is just another scheme to get the farang. Paranoid?

This is no different than a progressive tax in many home countries and is geared to financing the government by those well over the poverty threshold.

I guess your right, they just wasted a 20 million dollar F-16 and they need to replace it with a newer jet.

[Daniel Ingalls]

How about a large tax on those beauty lotions that make your skin white and lotions to make your hair glow? Thai girls/woman spend a lot of money

on these products. Even those who are supposedly poor manage to buy such products. I don't understand these Thai girls, a golden brown skin looks beautiful

on thai girls! Could it be they don't want people thinking they might be laborers in a rice paddy? Or is it just the media, and want to look more Korean with white skin? Watch Thai TV, most commercials are for bleaching skin, and moisturizers for face and arms. Put a 10 baht tax on all of theses products which should be labeled a luxury item.

Thailand is learning fast how to screw the people with taxes! Sale tax at Malls for merchandise now at 7% and want to raise it to 8%

The new-bee of property tax on houses worth 1-2 million baht, and full rate of tax for homes over 3 million baht. They know darn well

most foreigners wives own property (homes) in that price range. Look at Chiang Mai, Thousands of new home developments mostly

bought by foreigners. Hey, wake up PM, start collecting tax off of the millions of street venders in Bangkok. Start taxing 1/2 baht on every

bottle of soda pop and coke sold through out the country. If you want to raise taxes, hit everyone, not just the ones well off. How about 1baht tax

on every roll of toilet paper? Everyone should pay on that. 1baht tax on every tube of toothpaste sold in the country. How about taxing all those small

Mom and Pop stores collect the 7% tax on merchandise they supposedly should be collecting for you, but haven't lately. When it comes to; zoo's

Museums, Parks, Points of interest along side roads, the foreigner get charged more than Thais. At every turn we make, someone has their hand out

for more money. Is this the typical attitude of the Thais, and now the Thai Government is doing the same thing on Land and House tax increase. Who is going to value the the property in question? The government? Are they going to asses by who is living in the house? Foreigners, Value of property goes up?(more taxes)

I'm sure the Thai Government will find ways to return this tax back to the Thai people in refunds, but forget for those who are not legal residents

of Thailand. Here is a new phrase for you "Tax discrimination based upon residency." If you're not a Thai citizen you get over charged, over taxed,

and because you came to Thailand to see all the beautiful sights and sounds, you pay extra!........I don't know if I broke any rules in this post, but

the truth has to come out from somewhere!

According to this, this is just another scheme to get the farang. Paranoid?

This is no different than a progressive tax in many home countries and is geared to financing the government by those well over the poverty threshold.

I guess your right, they just wasted a 20 million dollar F-16 and they need to replace it with a newer jet.

Progressive, meaning they jack up the tax progressively as the tourist trade revenue decreases. As the tide rises yearly, and Bangkok begins to flood,

those on the first and second floors of High rise buildings will be evicted. New Taxi permits will be issued to those who have boats now in the floating

markets. Can you visualize planes landing at the airports with floating pontoons? Bangkok is doomed. The tourist trade will collapse and I guess when that happens property on dry land will explode with more taxes! The taste of more revenue from property tax will not end, as with Europe and the US we will be taxed repeatedly until the end of time! There are to many other options to generate a tax base. "Ones home should be off limits."

[nontabury]

How will the tax be worked out? will it be based on the governments assessed value for that district, or will it be assessed on the market value, in other words the actual sale price.

[Daniel Ingalls]

How will the tax be worked out? will it be based on the governments assessed value for that district, or will it be assessed on the market value, in other words the actual sale price.

more than likely by actual sale prices of nearby houses of the same size based upon number of bedrooms/bathrooms

[cmsally]

I would think that looking at the level/increase in the household debt this would be the straw that crushes the camels back. Thailand is becoming more of a basket case by the day.

What exactly would this tax be providing? In UK you pay tax but it is a local tax that is used to provide services. Exactly what services would a tax be providing here - they can't even stop the smoke!

Edited March 3, 2015 by cmsally

[connda]

They haven't figured out how to tax the house and land to the point that the owner can no longer afford the tax payments and the house and land go to the government.

Shhhhhh.

[maidee]

socialism has started in thailand

now who will profit from all those new taxes ?

the poor ? the farmers ? education ?

or the usual suspects ????

[trogers]

They haven't figured out how to tax the house and land to the point that the owner can no longer afford the tax payments and the house and land go to the government.

Shhhhhh.

And you should be eternally grateful.

In communistic and socialist countries, you don't own the land. You lease.