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Land tax exempted on first residential house valued up to 50m baht

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Land tax exempted on first residential house valued up to 50m baht | Samui Times

There has been some confusion about the new land and building tax collection, effective from 1st January 2020, especially on what to do should a person own multiple houses and apartments. The Ministry of Finance has now confirmed that tax will be exempted on the first of such a residential group held by the same owner, up to a value not exceeding 50 million baht.

Land tax exempted on first residential house valued up to 50m baht | News by Samui Times

The Fiscal Policy Office Director General Lavaron Sangsnit said that the collection of this new tax won’t cause any higher burden on taxpayers compared to the previous tax regulations, as the new tax will be exempted on the first owned residential house valued at no more than 50 million baht.

It means 99.96 percent of first-time house buyers are exempted from having to pay the tax. Persons owning one residential house or apartment worth more than 50 million baht, which makes up 0.04 percent of all first-time house buyers or some 10,000 persons, will have to pay 200 baht tax each year on every million baht of excess housing value.

Persons owning multiple houses will however have to pay taxes on their second house without any value exception. A tax of 200 baht will be collected, for every million baht in value of the residential housing, and at 3,000 baht for every million baht in value of housing for rent.

The government has postponed the first collection of this land and building tax for four months to give local authorities time to prepare. House owners who receive value assessment letters from their district office or local administration should verify the correctness of evaluations, and contact respective agencies to make corrections if needed.

Individual farmers will be tax exempted for their farms worth up to 50 million baht. Farmland owned by corporations will be taxed at 100 baht for every million baht in value. Land and building used for industrial, commercial, and rental purposes will be taxed at variable rates starting from 3,000 baht to 7,000 baht for each million baht in value. Unused land will also be taxed; it is to be assessed at a progressive rate starting at 0.3% and rising to a 3% cap, to encourage land utilization.

NNT

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