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Land & buildings tax in Thailand.

land & buildings tax in thailand

This is a comprehensive guide on what you need to know about land and buildings tax in Thailand.

Land and buildings tax is a new type of tax that came into effect on 1 January 2020 and replaced the ‘local maintenance tax’ and ‘household and land tax’.

Let’s find out more about this new tax.

What is land and buildings tax?

The land and buildings tax was announced in the Government Gazette on 12 March 2019 and its purpose is to encourage land use, in other words, the government does not want the land to be abandoned without being developed.

Who is liable to pay land and building tax?

Under section 37 of the Land and Building Tax Act, tax is collected from the following types of land or buildings used for the following purposes:

  • Agricultural purposes, including rice farming, crop farming, plantation, livestock farming, aquatic animal farming.
  • Residential purposes
  • Other purposes excluding agricultural and residential purposes
  • Left empty or unused

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Which land or buildings are exempted from tax collection?

Under section 8 of the Land and Buildings Tax Act, land or buildings which constitute the following property is exempt from the collection of tax:

  • The property of the state or of a state agency used for affairs of the state or of the state agency or in a public undertaking, when such use is not for any benefit-seeking purpose
  • The property which serves as an office of the United Nations, a specialised agency of the United Nations or any other international organisation, in respect of which Thailand is bound to grant tax exemption under a treaty or any other agreement
  • The property which serves as an office of an embassy or consulate of a foreign country, in accordance with the reciprocity principle
  • The property of the Thai Red Cross
  • The property which is a religious asset of any religion and used only for carrying out religious activities or public undertakings or the property which is a dwelling place for monks, members of the clergy, priests or pastors of any religion or the property which is a shrine, only when it is not used for any benefit-seeking purpose
  • The property which is used as a non-remunerative public graveyard or public crematorium
  • The property which is owned by a foundation or a charitable organisation or place
  • The property privately owned, only in the part for which consent is given to the effect of allowing official use for public interests
  • The common asset available for common use by or for common benefits of co-owners under the law on condominiums
  • Public utility land under the law on land development
  • The land which is a public utility are under the law on Industrial Estate Authority of Thailand

What is the tax base for land and buildings tax?

The tax base for calculating the land and buildings tax is the assessed value of the land, building or condominium unit determined by the government authorities.

In the case of land and buildings that do not have an assessed value, the value shall be in accordance with the rules, procedures and conditions prescribed in the Ministerial Regulation.

What are the land and buildings tax rates?

The maximum tax rates for land and buildings are as follows:

Purpose of land and buildingsMaximum tax rate
Agricultural use0.15%
Residential use0.3%
Other use1.2%
Empty or unused1.2%

Pursuant to section 43, if the land or building is left empty or unused for a period of more than three consecutive years, it will be subject to an additional rate of 0.3% every three years, but the amount will not exceed 3%.

For the first two years of the tax collection, the following rates are imposed:

Land valueTax rate
1. Land or buildings for agricultural use
THB 1 million – THB 75 million0.01%
THB 76 million – THB 100 million0.03%
THB 101 million – THB 500 million0.05%
THB 501 million – THB 1 billion0.07%
More than THB 1 billion0.10%
2. Land or buildings owned by individuals for residential use whose names are listed on the household registration documents
THB 1 million – THB 25 million0.03%
THB 26 million – THB 50 million0.05%
More than THB 50 million0.10%
3. Buildings owned by individuals for residential use whose names are listed on the household registration documents
THB 1 million – THB 40 million0.02%
THB 41 million – THB 65 million0.03%
THB 66 million – THB 90 million0.05%
More than THB 90 million0.10%
4. Land or buildings for residential purposes other than (2) and (3)
THB 1 million – THB 50 million0.02%
THB 51 million – THB 75 million0.03%
THB 76 million – THB 100 million0.05%
More than THB 100 million0.10%
5. Land or buildings used for purposes other than for agricultural and residential purposes
THB 1 million – THB 50 million0.30%
THB 51 million – THB 200 million0.40%
THB 201 million – THB 1,000 million0.50%
THB 1,001 million – THB 5,000 million0.60%
More than THB 5,000 million0.70%
6. Empty or unused land or buildings
THB 1 million – THB 50 million0.30%
THB 51 million – THB 200 million0.40%
THB 201 million – THB 1,000 million0.50%
THB 1,001 million – THB 5,000 million0.60%
More than THB 5,000 million0.70%

Land and buildings tax exemption

Land or buildings which the owner uses for agricultural purposes are exempt from the value of the tax base if the calculation of tax in total does not exceed THB 50 million.

Land or buildings which the owner uses for a residential purpose and has his/her name listed in the household registration certificate on 1 January of the tax year shall be exempt from the value of the tax base if the calculation of tax does not exceed THB 50 million.

In the case that the owner owns the building without owning the land and uses the building for residential purposes and his/her name is listed on the household registration certificate on 1 January of the tax year, the owner will be exempt from the value of the tax base in the calculation of tax if the amount does not exceed THB 10 million.

When is the tax due?

The local government authorities shall notify the taxpayer of the amount of tax to be paid by February of each year. The taxpayer must pay the tax as stated in the notice by April of every year.

The notification should include a list of the land or buildings, the appraisal value, the tax rate and the amount of tax payable.

Where can the tax be paid?

The tax indicated in the notification can be paid at the following locations:

  • The Municipality Office for land or buildings located in the municipal area
  • The Tambon Administrative Organisation for land or buildings located in the area of the Tambon Administrative Organisation
  • The Khet Office for land or buildings located in the Bangkok Metropolitan Administrative area
  • Pattaya City Hall, for land or building located in Pattaya
  • The office of any other local government organisation as specified by the law for land or buildings in the area

Penalty for late tax payment

The local government organisation will send a written warning to the taxpayer that has unpaid tax within May which the taxpayer is required to pay the overdue tax together with the penalty payment and surcharge.

If the taxpayer has failed to pay the tax within the specified period, the taxpayer is liable to make penalty payment of 40% of the overdue tax.

In the case that the taxpayer has paid tax before receiving the written warning, the taxpayer is liable to a penalty payment of 10% of the overdue tax.

When the taxpayer has failed to within the specified period but has paid within the time specified in the written warning, the taxpayer is liable to a penalty payment of 20% of the overdue tax.

Taxpayers who have failed to pay the tax within the specified period are also liable to pay a surcharge of 1% per month of tax. A fraction of a month is counted as a whole month.

Conclusion

Land and buildings tax is still new in Thailand and not many are familiar with this tax yet. If you have any further questions or need guidance, feel free to contact Acclime.


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Acclime is Asia’s premier tech-enabled professional services firm. We provide formation, accounting, tax, HR and advisory services, focusing on delivering high-quality outsourcing and consulting services to our local and international clients in Thailand and beyond.

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