Reduction in tax on land and buildings
Keywords: Mazars, Thailand, Tax, Land, Building
8 May 2023
The Royal Decree states that tax on the following types of land and buildings will be reduced by 15% for the 2023 calendar year:
1. Land or buildings used for agricultural purposes;
2. Land or buildings used for residential purposes;
3. Land or buildings used for certain purposes other than those set out in items 1 and 2; and
4. Vacant or unused land or buildings.
Therefore, the owners of such land or buildings will pay 85% of the net amount of tax on land and buildings.
In addition to this most recent reduction, owners of types of land and buildings* that were eligible for a 50% reduction in tax under the previous Royal Decree on reducing tax issued in 2020 can claim this additional 15% reduction. Therefore, such property owners will pay 42.5% of tax due for 2023.
However, owners of certain types of land and buildings (refer to the sources below for more detail) that were eligible for a 90% reduction in tax under the previous Royal Decree on reducing tax can continue to utilize this reduction but are not entitled to the 15% reduction in tax under the most recent Royal Decree.
The table below gives examples of types of land and buildings which are eligible for a reduction in tax under the applicable Royal Decrees and the tax rates after the reduction:
Examples of certain types of land and buildings | Rate of reduction in tax under the previous Royal Decree issued in 2020 | Rate of reduction in tax under the most recent Royal Decree | Net tax rate in 2023 |
Land or buildings used for: - agricultural purposes; - residential purposes; - certain other purposes; and - vacant or unused land or buildings. | - | 15% | 85% |
The types of land or buildings mentioned above, including land on which an electricity-generating dam is located | 50% | 57.5% | 42.5% |
The types of land or buildings mentioned above, including land allocated for the development of housing projects. | 90% | - | 10% |
Sources:
https://ratchakitcha.soc.go.th/documents/140A020N0000000009700.pdf
https://www.krisdika.go.th/librarian/get?sysid=851335&ext=htm