On January 9, 2025, the Ministry of Finance and the Ministry of Interior issued its Ministerial Notification (No. 2) on the criteria and procedures for the collection of land and building tax for properties used for multiple purposes. This notification amends and improves the content of the first notification to enhance clarity and comprehensiveness in the criteria and procedures for land and building tax collection.
The main amendment from the new notification is the amendment to Clause 2 (4) of the notification which specifies that the valuation of land or land and buildings shall be based not only on the contract, but also on a permit for land utilization or other documents of a similar nature.
In addition, the notification also improves the scope of land or land and buildings used for multiple purposes for tax base calculation purposes as follows:
(c) Lease-purchase of land or land and buildings owned by government agencies.
(d) Lease, lease-purchase, possession, or utilization of land or land and buildings involving government agencies, cooperatives, farmer groups, community enterprises under the law on the promotion of community enterprises, or community organizations, which have been allocated or transferred of such land or land and buildings from government agencies or public organizations for further allocation to individuals.
(e) Lease, lease-purchase, possession, or utilization of land or land and buildings involving cooperatives or community organizations, which have received support and assistance from public organizations to acquire such land or land and buildings for further allocation to individuals.
In cases where the use of land or land and buildings falls under multiple classifications under Clause 2(4), the valuation of land or land and buildings shall be based on the lowest value for tax base calculation purposes.
This notification is effective on 1 January 2025 onwards.