The Cabinet of the Royal Thai Government has approved a new draft property tax bill.
However, a statement issued by Thailand’s National News Bureau appears to be unclear as to who will be impacted.
The good news is that unless your property is worth more than THB 50 million, you will not need to worry about this new property tax.
The draft bill, which has yet to become law, will impose a maximum rate of 5 percent on property that benefits from the development of transport infrastructure.
And here’s the problem as we see it.
The statement first says the property tax will be collected on land or condominium units with a commercial value of more than THB 50 million, while later saying the bill will target only property used for commercial purposes and will not apply to residences or farmland.
Perhaps something has got lost in translation but we know there are very few condominium units worth THB 50 million or more. The situation is very different for land plots, on the other hand.
The bill was proposed by the Ministry of Finance, with an aim to create fairness in the tax system.
The statement further added that individuals and juristic persons to be subject to the additional tax are those who possess land or condominium units with a commercial value of more than THB 50 million.
A property is considered taxable if located within a five-kilometre radius of transport infrastructure projects, which include high-speed railway, double-track railway, electric railway, highways, airports and seaports, it further added.
The tax will be collected once by the Department of Lands or a local administrative organisation.