Land Tax - Anyone understand this..... o.0

[inquisitive lobster]

Hi,

As the title asks, does anyone understand land tax i.e Property Tax.

I understand that for private land used for residential purposes, the land tax / property tax is very little or exempt, but what is the annual land tax for land used for commercial purposes and what are the penalties for not paying it.

For example if a company pays for land and then builds a building on it for business purposes like warehousing or sale of goods and/or services or manufacturing, what is the land tax that the company must pay? (I understand it varies based on each provincial local laws but what is the max % it can be?)

If anyone has any advice it will be much appreciated.

Thanks

[CharlieH]

MOVED to property forum

[kamalabob2]

I can only speak of paying 10 years worth of land tax in an Amphur and land tax for family village land. It is an easy and painless process. You show them a previous land tax payment receipt OR a copy of the land paper. They have a ledger. There is not trickery. You pay what they say, you get a receipt and you have the option to pay several years in advance to save the gasoline expense. This can be a five or six minute process if you have a copy of the previous land tax payment receipt or land papers. It might be a higher rate for "commercial" property, but the process should be the same. I can not comment on late payment penalties, since I have been able to pay a few years at a time and keep current. I have never brought my wife into the tax office, it is not a bad experience to have them show you the payment due and issue a written receipt.

[ToddinChonburi]

Your tax place would be able to answer this the best, rental property based on how much you charge for rent and how many units. and yes it sucks.

[maidee]

as you cannot own land, you farang will not have to pay any tax, right ?

[fabphil]

Hey the thais cant even understand it, what hope have falangs got

[sandmike]

Your tax place would be able to answer this the best, rental property based on how much you charge for rent and how many units. and yes it sucks.

Not far from you, in Banglamung (cough), my wife has some apartments, and she was given a choice. Either accept the tax offices assessment of 1500 baht per room (1 month rent) per year, or complete a monthly income report and pay on actuals. the 1500 baht is less then the rent she charges, so she chose that option.

I don't know if this is a standard figure, or indeed, if it is a land tax.

If this is not land tax, then please delete.

[blackcab]

Your tax place would be able to answer this the best, rental property based on how much you charge for rent and how many units. and yes it sucks.

Not far from you, in Banglamung (cough), my wife has some apartments, and she was given a choice. Either accept the tax offices assessment of 1500 baht per room (1 month rent) per year, or complete a monthly income report and pay on actuals. the 1500 baht is less then the rent she charges, so she chose that option.

I don't know if this is a standard figure, or indeed, if it is a land tax.

If this is not land tax, then please delete.

It's called Pasee Rong Ruen which roughly translates to property tax. It is charged by the local government.

There is a calculation, but before I set it out I must say that the tax official in charge of the assessment has total discretion over the final sum payable.

Let's take a fictional apartment building in Bangkok (tax levys in other locations will differ). The building has 100 rooms for rent, and the rental rate is 2,500 baht a month.

The calculation used is:

100 rooms X 12 months = 1,200 available room months per year

1,200 X 80% = 960 chargeable months

960 X 2,500 (monthly room rate) = 2,400,000 baht

2,400,000 X 12.5% (the tax levy) = 300,000 baht tax payable per year

In this calculation there is only one thing the tax office can change, and that is the 80% figure. 80% could be used because the tax office might understand that the apartment block was not 100% full 100% of the time.

On the other hand they could use 100%. Or less than 80%. It's up to them to decide based on how and what you present to them.

One thing to remember is that the tax office can and do check electricity useage. If you were to claim the building was nearly empty and your electricity bill was 50k a month they would just not believe you. Bare in mind they have a lot of other apartments to compare yours to.

The tax is also levied on other commercial buildings, however I do not know the way it is calculated for other industries.

Final thought: the 300k per year tax I calculated above is in excess of 1 month's entire rental income for the property.