Are you a Property Owner in Thailand? Or are you planning to Purchase a Property in Thailand? In any or both the cases, you must have an apt knowledge about the recent protocols on Property Taxes in Thailand. According to Finance Minister Arkhom Termpittayapaisith, the land and building tax is still granting a payment discount this year. It is very prominent that the approval of this statute is to relieve the burden on landowners.
However, according to his speech, this is the last year that the land and building tax law provides a reduction to landowners. The law is effective since 2020 and provides a tax payment rebate for the first three years of its implementation. Read this article before proceeding towards the payment of your Property Taxes in Thailand!
Land and Building Tax Reduction in 2022
Property owners will see considerably higher tax bills in 2022, since no reduction is expected. However, the tax will be due in April for property purchased on January 1st.
The appraisal in valuation of the property, according to the Treasury Department, is usually the tax base. Assessment of Property values are done every four years, and the 2016 valuations are still in effect. However, the new valuations anticipating postponement since 2020 owing to the pandemic.
Property registration fees reduced to 0.01%
There is an approval of the Thai Cabinet in the reduction in registration fees for developers selling new residential properties. Moreover, until December 31, 2022, there will be a decrease to 0.01% of the 2% transfer registration cost and the 1% mortgage registration. However, the registration of mortgage must simultaneous with the transfer. Additionally, both the price and the mortgage must not exceed Baht 3 million.
Property Tax Rates in Thailand for the 2022-2023 tax years
The Royal Decree prescribes the Land and Building Tax Rates, B.E. 2564 (2021). Publication of this copy was in the Royal Thai Government Gazette on December 13, 2021. Moreover, the purpose was to keep the 2020 and 2021 land and building tax rates in effect for the 2022 tax year. However, the following are the land and building tax rates of the Royal Decree for each category of property:
| Purpose of Use of Property | Tax Rates |
| Agricultural Purpose | 0.01% – 0.1% |
| Residential Purpose | 0.03% – 0.1% (Lands and Buildings owned by individual whose name is registered in the House Registration Book) |
| 0.02% – 0.1% (Buildings owned by an individual whose name is registered in the House Registration Book) | |
| 0.02% – 0.1% (Land and Buildings other than the above conditions) | |
| Purposes other than the Above | 0.3% – 0.7% |
| Undeveloped Land & Buildings | 0.3% – 0.7% |
The above tax rates is subject to examination again in 2024. This is according to the cabinet’s resolution accepting the draft Royal Decree. Moreover, this is to account for changes in economic and social growth at the time.
90% reduction on land and building tax for the 2022 tax year
According to Mr. Arkhom Termpittayapaisith, the Finance Minister, due to the budgetary strain, the 90% decrease in land and building tax that took effect from 2020 to 2021 will not be extended this year. However, this is subject to the Ministry of Interior’s further examination.
Therefore, it is good news for the property owners in Thailand. Understanding the need of recovery of the citizens from the COVID crisis, the reduction or no change in the tax rates clearly showcases the benevolent nature of the Royal Thai Government.
Therefore, in case you are still to pay your property taxes, or need any help in executing a will or testament, we will be happy to be by your side. Moreover, we can also help you in your Power of Attorney, if you are a foreigner and want to transfer the authority of your property to someone else. Thus, for any and all types of property related legal services, please email us at [email protected].
