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Thailand Land and Property – Paying Our Share

By on Jul 08, 2016 in Investment-Land, Property News

The new Thailand land and buildings tax  in 2017 may be unpopular but it will still be amongst the lowest in Asia Pac region. The government approved the long scrutinised bill last month. The aim is to reduce disparity, encourage utilisation of undeveloped land and possibly for the government to see some money.

The new law will impose taxes on primary residences and land appraised at 50 million baht or more. This means more than 99% of all houses in Thailand will not be affected. Houses or farmland over 50 million baht will be subject to progressive rates of tax, with second homes taxed at higher rates – rates will vary from 0.03% and 0.30%. These taxes would also be applicable to foreigners .

For commercial property, the bill sets a ceiling rate of 2% of appraised value for land use. There is a ceiling rate for vacant or undeveloped land of 5%.

The Finance Ministry has estimated that the land and building tax could bring in 64 billion THB in revenue, 60 billion of which would come from commercial buildings. The taxes in Thailand are among the cheapest in the region except for Indonesia but still owners and developers of commercial property will need to take the tax into account when planning returns.

Source: Bangkok Post, 27th June 2016
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