Thai Property Taxes

Building and Land Tax is charged at a rate 12.5% of the yearly rental or assessed yearly rental value for any building or permanent structure built in Thailand that is put to commercial use. The tax object is the building. Owner-occupied residences are exempt from paying building and land tax for the first property (the second or more properties are not automatically exempt). If the owner of the house rents out his property or if he uses it for storage of commercial or industrial goods than he is responsible for paying building and land tax. If the building is owned by a Thai company and the building is for instance occupied by the foreign director as a holiday home the company is required to pay building and land tax irrespective if the company receives income from it or rental is paid by the director to the company.

 

The land owner is required to pay this tax, or if the building is owned by someone else than the land owner, then the owner of the building is required to pay building and land tax. If building and land tax is applicable it is the responsibility of the owner of the land or building to inform the local authorities (Or. Bor.Tor or Municipality) and pay building and land tax before the end of February each year.

Tax object is the land. The rate depends on location and use of the land but is a very small amount up to a maximum of a few hundred of baht per year.  This tax must be paid by the owner of the land.

There are approved plans to replace the current Building and Land Tax and Local Maintenance Tax by a new Building and Land Tax . It is not yet known when the new tax law will be announced, but under the new property tax law every owner of land and/ or any permanent structure built upon the land must pay building and land tax (owner-occupied residences are under the new property tax law not exempt). For every building the new property tax must be paid. The new building and land tax will be based on the appraised value and use of the property. Appraised value is set by the Treasury Department and adjusted every 4 years, with next valuation in 2011. Under the new building and land tax there are 3 maximum rates:

The above rates are the maximum tax rates that can be charged by the local authorities, therefor building and land tax can vary per location.

 

Related: Property Transfer Tax in Thailand

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