Land & Property Tax / Who responsible at transfer?

[moonseeker]

It seem to be clear now that at least Pattaya and other districts starts enforcing this tax from all owners of any real property. Few seem to have paid that tax in the past. Fewer even seem to

know or are informed about this tax.

 

Question:  If I buy a condo next week, whose owner of 20 years has not paid that tax, will I be responsible from the date of purchase or retroactive for the 10 years, I am aware

of is being charged to owners of condos, houses etc. Primary (1) residence owner occupied exempted if NOT in company name. Thanks for any informed feedback.   MS>

[Borzandy]

The owner if he really wants to sell or the buyer if he really wants to buy.

[williamgeorgeallen]

correct me if i am wrong but isnt land property tax paid on sale of the property? think the seller is supposed to pay it but often if is split 50/50. the land office wont make the transfer till it is paid.

 

[swissbie]

The new tax system in question isn't introcued yet.

[swissbie]

Just now, swissbie said:

The new tax system in question isn't introcued yet.

introduced..

[sangtip2]

If the tax is not paid by someone  there will be no sale

[Retiredandhappyhere]

Surely the poster was referring to the annual 0.1% tax due by the owner on the assessed value of a non-owner-occupied dwelling.

 

However, if the house is owned by a company of which the occupier of the house is a shareholder and therefore partial owner, he is still NOT treated as the owner occupier of the house if the house itself is a company asset and he(via the company) is therefore liable to pay the annual tax, 

 

The problem is that the local Land Office does NOT send out demands as they rely on people to call in and have their property assessed, if not already done, and then pay the tax due.   A concern is that the officials might over-assess the value on which the 0.1% tax is based and even (so I am advised) pocket the money paid, despite apparently giving an official  receipt.  If the assessed value of the property was in writing and sent to the home by means of a letter, then at least there would be a right of appeal if the value was considered to be excessive.

 

Although, for most ordinary dwellings,  the 0'1% tax would not amount to much (3000 bahts per year for example on a 3 million baht house) another concern is that the new company owner, where the house is shown on the Balance Sheet as an asset, could be held liable for any unpaid tax even prior to his acquisition of the company, since the new company owner undertakes to take on any unpaid debts of the company when buying its shares.  I understand that any such unpaid tax could be increased by penalties for default plus interest. As many offices make no effort to collect this property tax, many owners of property are completely unaware of it but I have noted on this forum recently that a few offices are waking up and are trying to collect all the back taxes.   This will become even more likely if the Government's plans to make the tax payable even by owner-occupiers in future come to fruition, as the authorities will then discover who was liable and not paid the tax in the past

 

If anyone has any additional information or experience on this subject, I, for one, would be pleased to hear it.

 

[KittenKong]

On 29/06/2017 at 7:10 PM, Retiredandhappyhere said:

Surely the poster was referring to the annual 0.1% tax due by the owner on the assessed value of a non-owner-occupied dwelling.

 

Maybe, maybe not. I suspect that he may be referring to the 12.5% rental tax.

 

Other posters in this thread are referring to the property transfer tax. So general confusion all around I think.

[kyrre]

The tax is enforced and going back 10 years.. 2 of my neighbors have got the letter and talked with city hall and on a single story house of approximately 10 x 4 m the tax was 7500 x 10 totally 75000 thb.

 

Most people i talk to have never heard of this tax, and the accounting companies has never informed about it. Even they should at lest have informed you as they are the one handling the company paperwork.