Thai Housing & Land Tax

[eggers]

I rent a Condo in Onnut area, Bangkok & last week received a letter in Thai & English from Phra Khanong Local Office regarding the Housing & Land Tax Act.

It was addressed to owner & stated where a property is leased/rented a form had to be completed & lodged with the Local Office by the owner together with other docs.

The owner has now advised there is to be a charge of 12.5% of the rental amount to be paid.

Have been leasing same Condo for 3 years on a lease renewal each March as was case this year.

Am wondering what would be my legal position? Could the owner impose the charge onto me or would a new lease have to be negotiated?

[blackcab]

The tax is called par see rong ruan and the position is very clear in that it is 100% the responsibility of the owner unless your tenancy agreement says you agree to pay it over and above your rental payments.

No need for you to do anything as the district office won't be chasing you in any way as ultimately the responsibility to pay is with the owner.

100% sure of this as part of my job in Bangkok is to deal with this tax.

The owner can ask you to pay it, the same way they can ask you to pay triple your rent. It's not your responsibility, so if the owner asks remind them of their obligations to pay their tax that is due on their income.

One point to make for others is that this tax is payable on property that is not used as the primary residence by the owner.

For all those people who own property in a company name, a director living in the property is not considered as being occupied as a primary residence. This means every property held in a company name is liable to pay this tax, which is a little over 1 months rental income per year at the market rate.

Bit of a time bomb there first some people...

Edited June 1, 2016 by blackcab

[johng]

Is this a new tax blackcab ?

[blackcab]

No. It's been around a long time. There were plans to replace it with a different tax, but no changes so far.

[meatboy]

as interest rates are very low,mrs meat was looking to buy another property to rent out.

BUT she says there are new tax laws coming in where second owned homes are goner be hit for tax. IS THIS THE CASE?

[blackcab]

It's not a new law, it's been around for years. The tax is not for second homes. It is for second homes that are rented or leased for profit.

This is why owners don't like giving written contracts and they don't like putting tenants in the house book. Doing this makes the tenancy more traceable and more liable for tax.

Edited June 7, 2016 by blackcab

[rocketboybkk]

Op

You don't have a legal position

Either pay, negotiate or leave

Sent from my iPhone using Tapatalk

[blackcab]

Op

You don't have a legal position

Either pay, negotiate or leave

Sent from my iPhone using Tapatalk

Instead of telling the OP to pay someone else's bill, why don't you save him the hassle and pay it for him?

If you find that proposition absurd, consider what you advised him to do.