Is there such thing as house tax in Thailand? If so, what is the tax rate? How about the land where the house is situated?
In Thailand, the rate of tax is 12.5% of the actual or imputed annual rental value of the property of owners of land or house and buildings, used for any purpose, with the exception of owner-occupied residences.
If houses or buildings on the land are owned by a person other than the owner of the land, the owner of the buildings is liable for the tax.
Damaged buildings are subject to a reduced valuation in proportion to the extent of the damage. Reductions also made pro rata where buildings have become unoccupied during the year.
Exceptions to the house and land tax are as follows:
(a) Royal palaces owned by the Crown
(b) Buildings owned by the government and which are utilized for public purposes
(c) Public hospitals and educational institutions not operated for profit
(d) Religious buildings
(e) Buildings unoccupied for a period of 12 months or more
(f) Buildings used as the personal residence of the owner
The taxpayer is required to file a tax return within February of each year at the municipal or district office where the land and buildings are located. Tax must be paid within 30 days after notification of the tax assessment.
In case of failure to file a tax return, there will be a penalty of Baht 200.
Furthermore, a penalty of 2.5% of the tax liability will be imposed if the tax is paid during the first month following the due date for payment, rising to 5% for the second month, 7.5% for the third month and 10% for the fourth month. After the fourth month, the authorities have the right to seize and sell the property in order to collect the arrears.
Contact MSNA for your Thai accounting and tax questions.