New Property Tax in Thailand

New Property Tax in Thailand

Baker Mckenzie
5th Floor and 21st-25th Floors, 990 Abdulrahim Place,
Rama IV Road, Silom, Bangrak, Bangkok 10500, Thailand

On 16 November 2018, the National Legislative Assembly ("NLA") passed the Land and Building Tax Act ("Act") after lengthy deliberation by the committees
involved. It is expected that the Act will become effective once published in the Government Gazette, and tax collection under the Act will commence on 1
January 2020. This is intended to help taxpayers and the authorities come to terms with new real property tax regimes. The Act is set to replace the regressive
and outdated tax under the Household and Land Tax Act, B.E. 2475 (1932), and Local Land Development Tax Act, B.E. 2508 (1965), and is designed to decrease
income disparity, improve and encourage land use, increase efficiency in tax collection, and increase public revenue. The significant changes under the Act include the change of the tax base from
the yearly rent to the value of the land or buildings as appraised by the government. Furthermore, the collecting agent will now be the local Sub-district Administrative Organization ("SAO") for the sub-district (tambon). The taxable properties under the Act are land, buildings, and condominium units.

Click here to read more: New Tax In Thailand

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