An Update on the Land and Building Tax Rates for the year 2021 : A 90% Tax Reduction

There is a major change in the land and building tax rates for the year 2021. That is a 90% tax reduction will be applied. This year the property owners will pay only 10% of the calculated taxes. In addition, they are allowed up to 3 installments which can much lessen their burden during the crisis. Let’s check the tax rates in each category.  

1. 2021 land and building tax rates for the residential category

 There are two types of tax rates for the residential category: the tax rates for the owners who own both land and houses and the tax rates for the owners who own only houses. The differences in both types of tax rates are as follows: 

1. 2021 land and building tax rates for the residential category – the owner’s first house

 For the property that is owned and resided by an individual whose name is in the house registration, (the individual owns both land and houses) the owner will be entitled to the tax base reduction of 50 million baht. For example, the tax rate for a house with an appraised value of 55 million baht will be 0.03%. (55-50 = 5)  The tax rates for this category will be adjusted according to the value of both land and house as follows: • The tax rate for the land and house with the value not over 25 million baht is 0.03%  • The tax rate for the land and house with the value over 25-50 million baht is 0.05%  • The tax rate for the land and house with the value over 50 million baht is 0.1% 

• How to calculate: land tax payable = land value X land tax rate

 

1. 2021 land and building tax rates for the residential category – the owner’s first house

 For the property resided by an individual whose name is in the house registration, (the individual does not own the land) the owner will be entitled to the tax base reduction of 10 million baht*. For example, the tax rate for a house with an appraised value of 55 million baht will be 0.02%. (55-10 = 35)  The tax rates for this category will be adjusted according to the value of both land and house) as follows: • The tax rate for the house with the value not over 40 million baht is 0.02%  • The tax rate for the house with the value of 40 - 65 million baht is 0.03%  • The tax rate for the house with the value of 65 - 90 million baht is 0.05% • The tax rate for the house with the value over 90 million baht is 0.1%  

• How to calculate: land tax payable = land value X land tax rate

 

1. 2021 land and building tax rates for the residential category – the owner’s second house and henceforth

 

• The tax rate for the house with the value not over 50 million baht is 0.02%

 

• The tax rate for the house with the value of 50-75 million baht is 0.03%
• The tax rate for the house with the value of 75-100 million baht is 0.05%
• The tax rate for the house with the value over 100 million baht is 0.1%

1. 2021 land and building tax rates for the agricultural categoryThe tax ceiling is 0.15%. An individual who owns an agricultural land with the value not exceeding 50 million baht will be exempt from taxes. 2021 land and building tax rates for the agricultural category will be increased based on the value of the land as follows:
2.  

• The tax rate for the land with the value not over 75 million baht is 0.01%
• The tax rate for the land with the value of 75-100 million baht is 0.03%
• The tax rate for the land with the value of 100-500 million baht is 0.05%
• The tax rate for the land with the value of 500-1,000 million baht is 0.07%
• The tax rate for the land with the value of 1,000 million baht is 0.1%
  
  

• How to calculate:

                    For individuals 

• [Land value – exempt value (50 million baht)] X land tax rate

 For juristic persons 

• Land value X land tax rate

 

1. 2021 Land and building tax rates for the vacant land and unused house category

 
         For this category, the tax ceiling is 1.2% and the tax rates are 0.3-3% of the appraised value with 0.3% increment every 3 years up to 27 years or until the land is utilized.
 

• The tax rate for the land with the value not over 50 million baht is 0.3%
• The tax rate for the land with the value of 50-200 million baht is 0.4%
• The tax rate for the land with the value of 200-1,000 million baht is 0.5%
• The tax rate for the land with the value of 1,000-5,000 million baht is 0.6%
• The tax rate for the land with the value over 1,000 million baht is 0.7%

 

6/14/2021 5:21:13 PM