Thailand’s new Land and Buildings tax took effect at the start of the year, but the private sector wants to postpone payment of it in light of the ongoing COVID-19 pandemic. Collection of the tax has already been delayed until August.
It was originally supposed to be due in April. However, the government opted to delay this as local authorities and taxpayers weren’t fully prepared, according to local media reports.
The private sector is now urging the Thai government to delay the new Land and Buildings tax even further as the country’s economic situation has made it difficult to begin the collection process.
Chairman of the Federation of Thai Industries, Supant Mongkolsuthree, told the Bangkok Post that he believes the public and businesses are no longer in a position to pay the tax because of the drastic impact of the pandemic. The recommendation was made during a meeting of Prime Minister General Prayut Chan-o-cha’s Advisory Committee. No timeline for a decision has been announced.
New Land and Buildings tax has limited impact on individual property owners
Regardless of when collection of the new Land and Buildings tax in Thailand starts, the impact to most property owners will be limited. The new tax targets owners of luxury properties as well as individuals who own multiple residential units.
See more: Here’s what you need to know about the new property tax
Individuals who own a single residential property priced less than THB50 million are exempt from the new tax as long as the unit isn’t vacant. Vacant units valued at THB10 million or less are exempt from the tax as long as the individual does not own more than one unit. Empty properties valued between THB10 and THB50 million are taxed at 0.02 percent with the rate increasing from there.
Those owning two or more residential properties are on the hook for additional taxes. Any additional property owned by a person valued at THB50 million or below is taxed at 0.02 percent.