The new Thai property tax will come into effect on 1 January 2020. We set below the basis of that tax:
1. This is a tax that is assessed and calculated by the District Office, which is different to income tax where a taxpayer shall have a duty to calculate his tax payable. The District Office will calculate the property tax based on the information about the property (such as size, location, purpose of use, etc.) of the taxpayer.
2. The tax is calculated by multiplying the tax rate to the appraisal value of the property (this is a value of the property set by the government, which is generally much lower than its market price):
Tax = Tax Rate * Appraisal Value
3. Tax rates will depend on the use of the property and its appraisal value. For example, if you own a house or condominium unit for a residential use, the rate shall be 0.02% for the appraisal value that is not exceeding 50 million baht. If you own a house or condominium unit for a commercial use (such as renting out), the rate shall be 0.3% for the appraisal value that is not exceeding 50 million baht.
4. For the house or condominium unit that is used for a residential purpose, if that property is the first home of the owner with an appraisal value of not exceeding 10 million baht, a tax exemption is available to the owner whose name is on the household registration document. However; generally, a foreigner shall not have his name on the household registration document, unless he made such a request to the applicable embassy., subject to certain rules and procedures. Therefore, that tax exemption normally does not apply to the foreigner who owns property in Thailand.
5. During November 2019 through March 2020, the District Office will send a letter to taxpayers. The purpose of that letter is to confirm the information about your property (in terms of location, size, and purpose of use) that the District Office currently has for calculating your property tax. If you have received that letter and found that any information about your property stated on it is incorrect, it is strongly recommended that you contact the District Office to correct that information, as they will rely on that information when they calculate your property tax payable. No actions are required if the information about your property on that letter is already correct.
6. During June 2020, the District Office will send a tax assessment letter to taxpayers. This letter will state how much the property tax that the taxpayer shall pay. Therefore, if you have received that letter, please bring it to pay your property tax at the designated place, e.g. that District Office, before the end of August 2020. A appeal can be made if you disagree with your property tax payable that was calculated by the District Office.
We, N-Able Group, are a real expert in providing tax services to individuals. If you have any enquiry about Thai property tax, please do not hesitate to contact us by sending your emails to firstname.lastname@example.org or dialing + 66 86 380 4143.