What is the land tax after "Chatchart Sittipunt" asked the new government to review land and building tax collection? After the formula for calculating the new model according to the land value As a result, those with higher incomes pay lower taxes.

What is land tax? Leave your homework for the new government to review land and building taxation. By calculating the value of the land, causing Bangkok's income to decrease Originally collected about 300 million baht when changing the form of land and building tax collection. As a result, the income was reduced to about 200 million baht. The land and plant tax turned out to be that those with high incomes pay much lower taxes. A famous department store in the Phayathai area originally paid 10 million in taxes, but with the new model, only losing 1 million, a 10-fold reduction.

So what is land tax?

What is land and building tax? It is an annual tax collected and calculated from the value of land and buildings occupied by land owners. with local organizations such as municipalities, sub-district administrative organizations be a collector

Who has to pay land tax?

The owner of the real estate property (look at the title deed, not the house registration)

Occupiers/use of land It can be a natural person or a juristic person.

which the land and building tax law 2019 is a replacement law Property and land tax and local maintenance tax redundant

The land tax 2023 divides the types of land that are subject to tax in the amount of 4 items as follows:

agricultural land

Residential Land

  commercial land

  waste land

agricultural land The maximum tax ceiling is 0.15%.

Individuals whose land value does not exceed 50 million baht do not pay tax.

For juristic persons, the land value in excess of 50 million baht is subject to normal rate.

Residential land, tax rate up to 0.30%

The main house with a value of no more than 50 million baht is exempt from tax, and the amount of more than 50 million baht pays at the normal rate.

Buy a condo or build a house on leased land. Values not exceeding 10 million baht are exempt from tax, and those exceeding 10 million baht are subject to normal rates.

Land or another house lose at the normal rate

Commercial land, tax rate up to 1.20%

Means other land that is not used for agriculture and living such as hotels, shops, restaurants, coffee shops, convenience stores, factories, daily dormitories, daily rental houses. which must pay tax at the normal rate

Wilderness, maximum ceiling 3%

If the land is abandoned for 3 consecutive years, the tax will be charged in the 4th year, an additional 0.3% will be added and the tax rate will be increased by 0.3% for every 3 years that the land is abandoned. But overall, the tax will not be more than 3%.

However, on March 19, 2023, the Government Gazette announced the reduction of tax on certain types of land and buildings in 2023. For the essence of the tax reduction decree for certain types of land and buildings, No. 3, 2023, the tax rate is reduced to 15%. of the amount of tax calculated as follows:

1. Land or buildings used for agricultural operations

2. Land or buildings used as residences

3. Land or buildings for other uses

4. Land or buildings that are left empty or not used as appropriate to their condition.

In addition, all 4 items of land or buildings will receive a tax reduction under section 4 of the Land and Building Tax Reduction Royal Decree of 2020, the tax reduction is as specified in the said royal decree.

Source:https://www.thansettakij.com/real-estate/566525

Date 29/05/2023