Land and Building Tax

  

Thailand last changed the tax rates in 2020, and recently announced to maintain those tax rates. The tax rates ranged from 0.01 percent for agricultural property with a value up to 75 million Baht to 0.10 percent for residential property with a value of more than 100 million Baht.

  

However, Thailand has announced a 90 percent reduction on the computed land and buildings tax liability through the Royal Decree on Land and Building Tax Reduction, B. E. 2563, which took effect on June 10, 2020. Therefore, taxpayers only  had to pay 10 percent of the computed tax amount for 2020. The government intended to provide additional financial relief from the Covid-19 pandemic. With a second Royal Decree in 2021, Thailand extended the 90 percent tax reduction for 2021.

  

Recently, the Finance Ministry announced that it would not consider an extension for the 90 percent tax reduction because of the fiscal burden imposed by this measures for the state. The tax reduction costs the state around 30 billion Baht per year (around 800 million Euro). 

  

Property developers criticized the announcement and asked to extend the measure for another two years, as the impact on the sector remains severe, not only for property business, but also on hotels, industries and the Thai people.