New Real Estate Taxes To be Introduced In Thailand
As a matter of fact, lands and buildings valued at 1 million Baht or more will be subject to taxes, at a progressive rate every three years but not exceeding 4% of the appraised value, according to the draft of the land and buildings tax bill.
In fact, Kritsada Jinavijarana, director-general of the Fiscal Policy Office (FPO), affirmed that they have set the maximum rate at 0.5% for land for agricultural use, 1% maximum for residential use and up to 4% for commercial use.
According to the FPO, the new property tax rates will take place once the Treasury Department will have assessed the 32 million plots of the Kingdom. As of now, only 8 million of them have been officially registered. Considering the tremendous amount of time such operation requires, this will take about 18 months to assess plots nationwide and the law shall only take effect in mid-2016.
These measures from the current government actually aim at reducing economic inequality, improving land distribution as well as the use of those plots across the country.