22 June 2016
THAILAND: New Land and Building Tax Expected by 2017
Thailand’s cabinet has approved a land and buildings tax bill to levy fees on owners of land and property used for agriculture, housing and other purposes. If approved by Thailand’s national parliament, the new fees will become effective as early as 2017.
Under the tax bill, homeowners will be subject to a progressive tax of 0.05% to 0.1% on all property with a value exceeding THB50 million (about US$1.4 million) for their first house and 0.03% to 0.3% on any additional houses. Land for agriculture and housing will also be taxed at 0.2% and 0.5%, respectively. While land under construction is set to be exempt from tax for one year, owners of unused land will be subject to a tax ranging from 1% to 3%, with rates increasing every three years.
The tax bill is projected to create as much as THB64 billion (US$1.8 billion) in revenue for the Thai government and supplement funds for local development. The bill will replace the Household Tax and Land Act B.E. 2475 and Community Development Tax Act B.E. 2508.