2022 Property Tax UpdateHLB Thailand Tax Team
The Thai government continues to monitor the financial impact of the pandemic on the country’s economy.
Thailand’s new land and building tax came into effect in 2020, which coincided with the start of the pandemic. The tax was reduced by 90% in 2020 and 2021 but the reduction will not be extended again. It was estimated that the local authorities in charge of collecting the tax lost more than Baht 40 billion in 2021 because of the reduction.
The Thai Cabinet has however approved another reduction of registration fees for certain property purchases.
Land and building tax reduction not extended in 2022
With no reduction planned for 2022, property owners will face noticeably higher tax bills. The tax, imposed on property held at 1 January, will be payable in April.
In most cases, the tax base shall be the appraised value of the property, as determined by the Treasury Department. Property values are appraised every four years and currently the valuations announced in 2016 are still in place, with updated valuations scheduled for 2020 postponed due to the pandemic.
Property registration fees reduced to 0.01%
The Thai Cabinet approved an extension of the reduction of registration fees for the purchase of new residential properties from developers.
The 2% transfer registration fee and the 1% mortgage registration fee will both be reduced to 0.01% until 31 December 2022.
The mortgage must be registered at the same time as the transfer and the price and the mortgage must both not exceed Baht 3 million.