Understanding Land and Building Tax in Thailand for 2024
Understanding Land and Building Tax in Thailand for 2024
Navigating the complexities of land and building tax in Thailand can be daunting. Here, we'll break down the key details for 2024, including who needs to pay, how much, and potential penalties for non-compliance.
What is the Land and Building Tax?
The Land and Building Tax is a new tax regulation replacing the old House and Land Tax and Local Development Tax, effective from January 1, 2020. This annual tax is based on the appraised value of land and buildings owned, and it's collected by local administrative organizations such as municipalities or district offices.
Types of Land and Building Tax
The tax is categorized into four types based on land use, with varying rates for individuals and corporate entities:
Agricultural Land:
Individuals: Tax-exempt up to 50 million THB, then 0.01% for 50-75 million THB, increasing incrementally to 0.1% for over 1,050 million THB.
Corporations: Tax-exempt up to 75 million THB, then 0.01% for 75-100 million THB, increasing incrementally to 0.1% for over 1,000 million THB.
Residential Land:
Single Homeowners: Tax-exempt up to 50 million THB, then 0.03% for 50-75 million THB, increasing incrementally to 0.1% for over 100 million THB.
Multiple Homeowners: Starting at 0.02% for land worth 0-50 million THB, increasing incrementally to 0.1% for over 100 million THB.
Commercial Land: Rates start at 0.3% for land worth 0-50 million THB, increasing incrementally to 0.7% for land worth over 5,000 million THB.
Unused Land: Rates also range from 0.3% to 0.7%, similar to commercial land.
Who Pays the Tax?
The tax applies to all land and building owners, determined by the name on the title deed as of January 1 each year. Both individuals and corporate entities, including those using state-owned land, are liable.
Penalties for Non-Payment
Failure to pay the land and building tax results in penalties:
A fine of 10% of the outstanding tax if paid late but before further action.
Increased fines and possible legal actions for continued non-payment.
Tax Reduction
For 2023, the government has announced a 15% reduction in the land and building tax to alleviate financial burdens.
Understanding these details can help property owners in Thailand comply with the tax regulations and avoid penalties.
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