Green light for land and property tax in Thailand
The decision is made. The land and property tax was approved by the cabinet on Tuesday. The current proposal has been slightly modified: tax on undeveloped land now starts at 2 percent with a three-year increase of 0,5 percentage points to a maximum of 5 percent.
In an earlier draft bill, the tax was 1 percent for the first three years, 2 percent from four to six years, and 3 percent for more than seven years, up to a maximum of 5 percent.
The tax also applies to first homes and agricultural land with an appraisal value of 50 million baht or more. Second homes are taxed at 0,03 to 0,3 percent.
Source: Bangkok Post
The bill now has to be approved by parliament, which will take two to three months. Prime Minister Prayut wants to introduce the tax as soon as possible. A spokesman explains that the tax aims to reduce income disparities and increase the tax base, increase tax revenue for local governments and improve land use.
The new tax replaces the old local one house and country and the local development tax. The new land and property taxes are due in April, starting in 2019.
Finance Minister Wisudhi says that the tax is not a burden for single house owners or agricultural land for farmers as the tax threshold is quite high. Owners of land with an industrial and commercial purpose in particular will have to pay taxes.
Source: Bangkok Post
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The only question that remains is whether two pieces of land worth 25 million Baht are taxed the same as a piece of land worth 50 million Baht.
Or whether the owner is assessed for his total possession of land
If he is only taxed for the pieces of land worth more than 50 million Baht, I predict many splits of large pieces of land into several small pieces in the future.
Only administratively at the land office, of course.
who determines the value of land and house? Here again “hand money” is introduced at the department of land of the municipalities.