Define Thai Property Taxes
Thai property taxes such as Local Maintenance Tax and Building and Land Tax are annual local governmental taxes levied on real estate. The tax object can be a building and/ or land in Thailand. Housing & Land tax, has as tax object the building or any permanent structure on land. The land owner must pay this tax for building or any permanent structure built upon the land or if the land owner is not the owner of the building or structure the owner of that building is responsible. The tax object of Local Maintenance tax is the land. The amount payable depends on location and land classification.
Building and Land Tax
The tax rate or tax base of Housing and Land Tax is 12.5% of yearly rental value of the property. Yearly value means the total rental income that should be gained for a whole year if the property has been rented out (also referred to as rental rate). Buildings or other structures privately occupied by the owner or their attendants for a purpose of residence (and if not used as the place for keeping their goods or for industrial activities) are exempted from paying this tax.
Local Maintenance Tax
- Tax Object: Land
- Responsible Person: Land owner
The Thai government approved an overhaul of the current Building and Land Tax which will replace the current Housing and Land Tax land and the local Maintenance Tax a with a new LAND AND BUILDING TAX.
Below are the principles of the new Land and Building Tax;
Tax Object: Land and Building or any permanent structure built upon the land. Responsible Person: Owner of the real property.
Buildings or other structures privately occupied by the owner or their attendants for a purpose of residence will NOT be exempted, so for every building in Thailand this tax must be paid.
Tax Rate/Tax Base: This tax has 3 different MAXIMUM tax rates, depending on the utilizing of the land or building and every local government may charge this tax up to the maximum rate as specified in the law.
- Normal rate for commercial land and building (Use for Commercial purpose) at the rate not exceeding 0.5% of the appraised value of the land and/or building;
- Second rate for private land and building using for private residence by owner and/or attendants at the rate not exceeding 0.1% of the appraised value of the land and/or building
- Third rate for agricultural land at the rate n;ot exceeding 0.05% of the appraised value of that land.
Remark: The appraised value of the land will be determined and properly adjusted by the treasure department for every 4 year, the next value will be due on the year of 2011.
