Land and Building taxes to be Reduced for the Remainder of 2020

It has been confirmed that property taxes will be reduced by as much as 90%. This will be applied to land and building tax. Thailand has become a hub over the last decade for businesses and investors, particularly within the property sector.  With so many new businesses and investors acquiring land, commercial property, and investment properties, Thailand understands the importance to keep this trend ongoing, for the future success of the Thai economy. The decision to reduce property taxes for the rest of 2020 is a strategic move approved by Cabinet, with the aim to help keep Thailand’s reputation intact, and create more transparency within the property market sector.

They understand that it is extremely important to show the Thai people as well as outside investors, that Thailand is ahead of the crisis, in some areas, and doing everything, they can to ensure foreign investment continues. This decision will greatly assist land and property owners to significantly help minimize the impact of the crisis where possible.

The government has pushed back the tax filing deadline to August and will be holding further discussions with local authorities on local tax collections.

As it stands Thailand has injected around $ 60 billion into the economy to offset falling exports and tourist arrivals. Thailand has also been cited as one of the success stories so far in containing the Coronavirus outbreak and being applauded by the World Health Organization for their stern approach and handle on things.

All things considered the reduction in land and building taxes, combined with the recent large cash injection, as well as their continued efforts in keeping COVIT 19 abet, we anticipate this will have a very positive impact on the property industry from now onwards and in the years to come.

Thailand certainly is proving itself to be a safe haven for its investors and local residents. Here in Phuket, outside investment continues despite levels of uncertainty in other countries. Developers are eagerly scouting for new land, and the reduction with such taxes in place most certainly plays a big role in them securing land sooner rather than later.

Residential Tax exemptions

Tax exemption for first home buyers for owners of both land and home worth up to THB 50 million and if the owner’s name appears on the house registration book.

Tax exemption for owners of home (not land) worth up to THB 10 million and if the owner’s name appears on the house registration book.

Agricultural land tax rates

Tax exemption for lands worth up to THB 50 million owned by individuals

In addition, individual owners who use the land, or building, for agricultural purposes will be exempt for the first three years of tax collection under the Act.