Lands and Buildings Tax in 2021
Land and Building Tax
The 90% reduction in land and building taxes and the reduced 0.01% fee for property transfers and mortgages is extended for the tax year of 2020.
The cabinet approved a 90 percent tax deduction to the following properties:
- Land or building for agricultural purpose;
- Land or building for residential purpose;
- Land or building for other kinds of use other than agricultural and residential purpose; and
- Unused land or building.
For example, in case that individual owning unused land or building with the appraised value of Baht 10 million normally paid s 0.3% of the value of land or building or paid Bath 30,000 or 100%. With this Royal Decree, the individual will pay only 3,000 Baht or 10%.
Property transaction fee is reduced
The cabinet also approved the deduction in property transaction fee to boost the real estate business in Thailand for lowering property (for residential purpose) transfer fees from 2.00 to 0.01% of the estimated property value.
Cutting fee for mortgages registration from 1.0% to 0.01% of the mortgage registration value for the property for residential purpose, if the value of the mortgage is not more than 3 million Baht.
In addition, due to the new round of the COVID-19 pandemic in Thailand together with at the moment, the Ministry of Finance is in the process of proposing the Draft of the Decree to reduce land and buildings tax in 2021 in order to be in accordance with the current economic situation and to mitigate the impact on the people resulted from Covid-19.
The Ministry of Interior extended the period for implementation of the Land and Building Tax Act B.E.2562 (A.D. 2019) for another 2 months (Only for the tax collection of the year 2021)
1. Announcement of the appraisal price of land and building, tax rate, tax amount, and other necessary details (from prior to 1 February 2021 to prior to 1 April 2021)
2. Notification of tax assessment to Taxpayer (Within February 2021 to Within April 2021)
3. Tax payment according to the tax assessment (from within April 2021 to within June 2021
4. Payment of the installments of the Land and Building Tax Taxpayer
From 1st instalment: Within April 2021
2nd installment Within May 2021
3rd installment Within June 2021
To 1st instalment: Within June 2021
2nd installment: within July 2021
3rd installment: within August 2021
5. Notification letter to the Taxpayer for the unpaid amount (from within May 2021 to within July 2021)
6. Preparing the list of the unpaid amount of tax to the land office or the land branch office (from within June 2021 to within August 2021.
Legal Insight Vol. February 2021 of Bangkok Global Law
The PDF file can be downloaded via the link as set below.