Property Tax

[dingdongrb]

Can someone tell me about property taxes in Thailand?

Here's the scoop. My wife bought a town home in Isaan about 15 years ago. At that time I asked about property taxes to her and she checked and replied that there was none.

Now move ahead to 15 years to the present and it appears that someone from one of the government offices has contacted her and said that we need to pay taxes for the past 15 years because we never paid any all this time. He threatened her by saying that he wanted the house paper if we didn't pay the back taxes.

So let me ask, don't they send out a notice each year when taxes are due like they do in the USA? Why would they wait 15 years and then try to collect?

Any info anyone can give me about how property taxes and the billing/payment system works is much appreciated.

[bangmai]

was there a lease involved, at all?

[onthedarkside]

Property taxes are only paid on rental income, something like 12% of the monthly income, for the building only, not for the value of the furnishings. If the house is used for personal habitation, then no tax at all.

[elektrified]

They don't send a notice.

The government comes by the MIL's apartment building each quarter - I believe - to collect the tax on the rental income. I think they notify her as to which day they will be coming.

[bangmai]

but if you bought it in your gf's name, and used a lease to protect yourself....you owe the 12.5% on that. Mine lease was 500,000 for 30 years (they wouldn't accept 300,000). So 12.5% of 500,000/30=2083.33 thb per year in lease taxes.....they never collected...but you start multiplying x 15 or 30, and add some penalties it can really riceball into a large amount.

[MaeJoMTB]

There is a tax on property, but it's such a small amount most people let it mount up.

Normally 100-200bht a year on a home.

My wife paid tax on her family home last year, 7 years worth.

Less than 1,000bht.

Ask at the land office.

They don't usually send letters, but you are asked to pay if you sell the property.

[Dante99]

Property taxes are only paid on rental income, something like 12% of the monthly income, for the building only, not for the value of the furnishings. If the house is used for personal habitation, then no tax at all.

This is incorrect. There are property taxes other than the tax on rental income. Raw land is taxed and homes for personal habitation are taxed if they(raw land and home sites) are larger than some code specified size (one rai??), Bills are not usually sent annually but are after an accumulation of years of non payment. Amounts are currently small but there is talk in BKK of increasing them which is facing strong resistance from the large land holders who are influlential.

Previous posters have confirmed portions of this.

[cmsally]

If it is a town home then there is a small house/property tax in most tesabahn areas.

You need to go to the Tesabahn office to check and pay. Ask your neighbours approx what they are paying

and if you have any queries over amounts being charged don't be afraid to ask to see superiors.

If it is out of whack with the normal payment levels then negotiate, as the offices have "targets" I presume.

The last thing you want to be is the last big slice missing from their pie chart!

Make sure they have your correct mailing address for any future tax notices.

[Dante99]

If it is a town home then there is a small house/property tax in most tesabahn areas.

You need to go to the Tesabahn office to check and pay. Ask your neighbours approx what they are paying

and if you have any queries over amounts being charged don't be afraid to ask to see superiors.

If it is out of whack with the normal payment levels then negotiate, as the offices have "targets" I presume.

The last thing you want to be is the last big slice missing from their pie chart!

Make sure they have your correct mailing address for any future tax notices.

It is always good to check with your neighbors but the amounts are usually so small it may not be worthwhile hasseling about. Best to keep the Tesabahn your friend.

[cmsally]

There was one year where they tried to add our neighbour's tax to our bill, as the neighbour hadn't paid for so long.

[onthedarkside]

Property taxes are only paid on rental income, something like 12% of the monthly income, for the building only, not for the value of the furnishings. If the house is used for personal habitation, then no tax at all.

This is incorrect. There are property taxes other than the tax on rental income. Raw land is taxed and homes for personal habitation are taxed if they(raw land and home sites) are larger than some code specified size (one rai??), Bills are not usually sent annually but are after an accumulation of years of non payment. Amounts are currently small but there is talk in BKK of increasing them which is facing strong resistance from the large land holders who are influlential.

Previous posters have confirmed portions of this.

I suppose it depends whether we are talking about land tax or property (building) tax, The OP did not clearly define what tax is being demanded. Yes, there is always a land tax, but it's a small amount per year. My wife pays something like 100 baht/year on a 3 rai rice field and a 9 rai farm, in total. Most Thai's don't even think about paying this for a small plot of land as the local authority don't bother cutting bills as it's not cost effective. The big tax is levied on rental/lease properties as defined in previous posts.

The OP needs to add more details as demanding the house paper seems a bit more serious than any default in land tax.

[cmsally]

To make it more clear , how has the OP received notice of this. Official letter, "my friend says" , message on Facebook etc etc

How come if they haven't been able to contact in the past can they suddenly contact now??

[MaeJoMTB]

To make it more clear , how has the OP received notice of this. Official letter, "my friend says" , message on Facebook etc etc

How come if they haven't been able to contact in the past can they suddenly contact now??

Never heard of them contacting anyone.

Usually they aren't worth the effort of collecting.

Which is why they ask when you sell the property.

[Dante99]

Property taxes are only paid on rental income, something like 12% of the monthly income, for the building only, not for the value of the furnishings. If the house is used for personal habitation, then no tax at all.

This is incorrect. There are property taxes other than the tax on rental income. Raw land is taxed and homes for personal habitation are taxed if they(raw land and home sites) are larger than some code specified size (one rai??), Bills are not usually sent annually but are after an accumulation of years of non payment. Amounts are currently small but there is talk in BKK of increasing them which is facing strong resistance from the large land holders who are influlential.

Previous posters have confirmed portions of this.

I suppose it depends whether we are talking about land tax or property (building) tax, The OP did not clearly define what tax is being demanded. Yes, there is always a land tax, but it's a small amount per year. My wife pays something like 100 baht/year on a 3 rai rice field and a 9 rai farm, in total. Most Thai's don't even think about paying this for a small plot of land as the local authority don't bother cutting bills as it's not cost effective. The big tax is levied on rental/lease properties as defined in previous posts.

The OP needs to add more details as demanding the house paper seems a bit more serious than any default in land tax.

The OP is not talking about rice field of farm land, he clearly states that it has a structure on it. There is a tax on land with structure(s) on it, including homes, which is has nothing to do with lease or rent income. The tax is due even if there is no income from the property.

Tax on property which includes land is different from tax on income produced by a property including land which may be in the form of rent or lease payments. One is tax on the asset, the other is tax on the income.

[Tywais]

Thai Property Taxes

There is a new law being proposed but won't effect the OPs current 'back taxes' Thailand's proposed new property tax: What owners need to know

[dingdongrb]

Thanks all for the replies.... The back taxes owed totals 30k baht.... The wife told me last night that they said it's 2k baht a year. We have paid half and will be paying the other half next week after I get funds deposited here from my US bank.

As for the property, it is a town home (no land).... It is in a small town about 30km from Surin. It is within a group of about 50 other town homes that was built by the original developer that we purchased it from. It has never been a rental property and is currently inhabited by myself (when I'm not in CM), my wife, and my daughter. We bought it and paid cash 15 years ago when the town homes were finished and put up for sale.

I appreciate the advice and will be talking with some the neighbors who own units in the same development.

[cmsally]

This sounds more like the development communal fee, not a govt tax

In which case there should be a price per square wah. Make sure to check out what you are paying, to whom and what the calculation is.

[onthedarkside]

Thanks all for the replies.... The back taxes owed totals 30k baht.... The wife told me last night that they said it's 2k baht a year. We have paid half and will be paying the other half next week after I get funds deposited here from my US bank.

As for the property, it is a town home (no land).... It is in a small town about 30km from Surin. It is within a group of about 50 other town homes that was built by the original developer that we purchased it from. It has never been a rental property and is currently inhabited by myself (when I'm not in CM), my wife, and my daughter. We bought it and paid cash 15 years ago when the town homes were finished and put up for sale.

I appreciate the advice and will be talking with some the neighbors who own units in the same development.

Might be garbage collection fee or some sort of communal dues.

[dingdongrb]

Might be garbage collection fee or some sort of communal dues.

The communal fee, garbage fee, and water is an entirely separate fee that has been paid every month we have owned the place. This so called 'tax' is not that.

[cmsally]

Then what would be your notification that you owe money. What kind of paperwork have you been sent.

You say you have paid half, what kind of receipt do you have for the half paid?

[dingdongrb]

Then what would be your notification that you owe money. What kind of paperwork have you been sent.

You say you have paid half, what kind of receipt do you have for the half paid?

The notification was stated in my original post. a government worker came around and stated that we haven't paid taxes due for 15 years and he wants to collect.

No paperwork was sent, as this was one of my queries to all in my original post.

My wife received a receipt for the 15k. Since she is in Surin and I am in CM I have yet to see a copy.

[cmsally]

You seriously need to see that receipt and get it verified before you pay anything else!

[rawhod]

We paid 6 baht to the Orbator for 14 years back land tax on 125 talan wah undeveloped land outside Chiang Mai.

We checked with the Tessaban for land tax on our house in the city and were told that nothing was payable on property on land under 100 talan wah (for which we got an official letter to attach to the Chanote)

We pay 20 baht a month for the bin collection.

No bills are issued.

Try to find out which office is asking for the payment.

Could it be that the tax was not paid on the purchase of the property? That would attract interest every year. Check your original bill from the land office (...sorry, but Thai people rarely keep bills and receipts)

[Bill97]

Dingd...

Your primary residence gets some exemptions so check it out (that would be your wife's primary residence).

[zeichen]

First of all every province is different.

Depending on where you live there could have been property tax but as someone else stated it is less than 1k baht a year for most properties. I doubt they would take your property for 3k baht worth of back taxes.

Have your wife get a property lawyer and have them deal with it, shouldn't cost you more than 10k baht for fees, fines and payments.

Also there is never a requirement for the government to tell you that you owe money, it is your responsibility.

We had a mortgage and they never sent us anything. After a year they sent what we paid for the year. The second year they raised the rates and didn't even tell us. A year later we found out we paid 3% more, they said if we paid a one time fee of 1,500 baht they would have kept the old rate. I said could we pay it now and get that 3% back. Of course not. he laughed.

[bangmai]

Did by chance, they mention to you that it was an ARM (adjustable rate mortgage), when you signed the loan agreement?

[MaeJoMTB]

This sounds more like the development communal fee, not a govt tax

In which case there should be a price per square wah. Make sure to check out what you are paying, to whom and what the calculation is.

Community charge for sure, private development, security, upkeep and cleaning of roads, street lighting, etc.

Nothing to do with tax or government, all to do with moobaan developer or community management company.

Doesn't the OP read documents his wife signs???????

[cmsally]

This sounds more like the development communal fee, not a govt tax

In which case there should be a price per square wah. Make sure to check out what you are paying, to whom and what the calculation is.

Community charge for sure, private development, security, upkeep and cleaning of roads, street lighting, etc.

Nothing to do with tax or government, all to do with moobaan developer or community management company.

Doesn't the OP read documents his wife signs???????

All a bit odd though as he just said he pays the communal fee on the dot. Nothing certain unless you can see the receipt he has which seems to be only documentation. Although if payments are made just by rolling up on the doorstep saying you owe xx amount, that's a jolly good extra job for someone! God knows what they are collecting.

[dingdongrb]

This sounds more like the development communal fee, not a govt tax

In which case there should be a price per square wah. Make sure to check out what you are paying, to whom and what the calculation is.

Community charge for sure, private development, security, upkeep and cleaning of roads, street lighting, etc.

Nothing to do with tax or government, all to do with moobaan developer or community management company.

Doesn't the OP read documents his wife signs???????

Sorry I can't read Thai.... We paid cash for the place, free and clear. the paperwork was done and we hold the paperwork showing ownership as well as it being listed in my wife's house-book.

There is no security as it's an open area. I stated already the upkeep of the greenbelt area and surroundings such as the so-called streets is paid monthly as it's part of the monthly billing from the developer along with the trash and water. They come around once a month to collect, just like what is currently done where I reside here in CM (Banwangtan). It is not the developer trying to collect this 'tax'.

"Community charge for sure" - LOL, you sound so sure of yourself that I'm thinking you live there too....... 555

Not the best of shots taken from Google StreetView but it's one of these units.....

[cmsally]

You really need to check out the receipt and verify it. Something does not add up.