Long-delayed property tax reform still stuck in Congress

Will Thailand see new land and buildings levies next year?
Long-delayed property tax reform still stuck in Congress

By Property Report 22 Jun 2018 SHARE share-icon share-icon share-icon share-icon

View of Bhumibol Bridge in Bangkok, Thailand. weerasak/Shutterstock

A committee of lawmakers tasked to vet a draft bill replacing Thailand’s outmoded land and buildings tax law need more time for deliberation, the Bangkok Post reported.

Deputy Finance Minister Wisudhi Srisuphan gave no assurance if the National Legislative Assembly’s standing committee for the tax reform can finish talks in time for implementation in January 2019.

The ministry and the committee have expressed differing opinions on several provisions of the bill approved by cabinet in March 2017. The NLA had ordered the ministry last year to conduct a survey determining the comparative tax burden between the bill and the old law.

The committee is proposing to lower the ceiling tax rate for homes from the ministry’s proposal of 0.5 percent to 0.3 percent. It also wants to decrease the exemption threshold for first homes from the proposed THB50 million (USD1.5 million) to THB20 million.

More: What will this Thai leasehold law mean for foreign tenants?

The NLA’s version of the bill would also tax first homes valued between THB20 million and THB50 million at 0.02 percent for every million in excess of the exemption ceiling.

First homes appraised between THB50 million and THB75 million will be taxed at 0.03 percent for every million in excess, while those valued between THB75 million and THB100 million will get a rate of 0.05 percent. Properties worth more than THB100 million will get 0.1 percent.

The committee is also looking to impose similar rates on second homes. Those appraised up to THB50 million will be taxed at a rate of 0.02 percent. Units in price brackets of THB50-75 million, THB75-100 million, and more than THB100 million will be slapped with 0.03 percent, 0.05 percent, and 0.1 percent in levies, respectively.

Prime Minister Prayut Chan-o-cha had deferred the bill in 2015 after a strong public outcry.