Thailand Property Tax

After lengthy deliberation, the National Legislative Assembly (NLA) passed the Land and Building Tax Act on 16 November 2018. The Act is set to replace the regressive and outdated tax, and designed to decrease income disparity, improve and encourage land use, increase efficiency in tax collection, and increase public revenue. The tax collection under the Act finally commenced on 1 January 2020. Starting form 1 January 2020, all owners of lands and buildings, either Thai or foreigner, need to pay 0.01% - 3% tax.

 

Different uses of the property

The tax rate will be different depends on the land uses of the property.

Agricultural - Land or building used for agricultural purposes, which include rice planting, farming, animal domestication and aquaculture. An individual land or building owner can enjoy a tax exemption if the tax base is less than THB 50 million. The ceiling tax rate for land or building used for agricultural purposes is 0.15%.

Residential - First residential home is the first residential land and buildings held by individuals as shown in the house registration certificate. Other residential homes are the second or more residential land and buildings held by individuals. An individual land and building owner the first residential land and buildings can enjoy a tax exemption if the tax base is less than THB 50 million. The ceiling tax rate for land or building used for residential purposes is 0.3%.

Commercial - Land or building used for any purposes other than agricultural and residential purposes. The ceiling tax rate for land or building used for commercial purposes is 1.2%.

Vacant - Land or buildings that are left vacant or not used for reasonable benefits. The tax rate will increase 0.3% every three years for properties left unused but will not exceed 3%.

 

Thailand’s property tax rate

Residential

Appraisal value	First residential home	Other residential home	For Rent
	Tax rate	Tax rate	Tax rate
0 -10M	Not taxed	0.02%	0.3%
10M - 50M	Not taxed	0.02%	0.3%
50M - 75M	0.03%	0.03%	0.3%
75M - 100M	0.05%	0.05%	0.3%
> 100M	0.1%	0.1%	0.3%

Commercial 

Appraisal value	Tax rate
0 -50M	0.3%
50M - 200M	0.4%
200M – 1B	0.5%
1B – 5B	0.6%
> 5B	0.7%

Vacant

Appraisal value	Tax rate
0 -50M	0.3%
50M - 200M	0.4%
200M – 1B	0.5%
1B – 5B	0.6%
> 5B	0.7%

  

Consequences of paying tax late

If taxpayers pay the lax late, they may face different consequences depends on the amount of days late. Taxpayers who pay tax late for less than 30days have to pay 2.5% of the tax as a penalty. Those who pay tax late for more than 1month, 2month and 3month have to pay 5%, 7.5% and 10% of the tax as a penalty respectively. When taxpayers pay tax late for more than 4month, they will be sued.