The requirement to pay land and building tax under Thailand's new Land and Building Tax Act B.E. 2562 (2019) (the "Act") came into force this year, on 1 January 2020. For the first time in Thailand, individuals and juristic persons who have rights of ownership, possession or usage over land or buildings, including condominiums, are required to pay land and building tax to local authorities.
Since the introduction of this requirement, however, there has been uncertainty about the rules and procedures of land and building tax. This is because the rules and procedures have been applied differently by each local authority, for the reason that relevant ancillary laws have not yet been promulgated.
Under the Act, the Ministry of Interior and Ministry of Finance had to issue ancillary laws by 10 July 2019, but this has still not been completed. As a result of this delay, the local authorities do not have clear guidelines on the rules and procedures for officers to proceed in the correct and legal manner.
Therefore, on 11 December 2019, the Ministry of Interior issued a circular letter to extend the period for implementing the Act within this year, as follows:
- Preparing land and building lists and notifying each taxpayer of relevant information must be completed by March 2020;
- Announcing the appraisal price of land and buildings, tax rates and other details necessary to collect taxes must be completed before 1 March 2020;
- Sending a tax assessment form to taxpayers must be completed by June 2020;
- Paying tax in response to a tax assessment notification form must be completed by August 2020;
- Payment of the first instalment of land and building tax must be made by August 2020, the second installment by September 2020 and the third installment by October 2020;
- Notifying taxpayers who have tax arrears must be completed by September 2020; and
- Notifying tax arrears to the Land Office must be completed by October 2020.
Land and building tax is new to Thailand, and with its complexities and many conditions, taxpayers should take a vigilant approach towards its application. Blumenthal Richter & Sumet will keep you up-to-date on any developments under the Act.
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