When land and building tax have to be paid

If the owner lives in the premises personally, the building and land tax is not applying. However, the second and all other premises belonging to the same owner are considered as premises for commercial purposes and are not exempt from tax.

Land and a house owned by a foreigner by registering ownership on the company name and where the foreigner resides temporarily or permanently will not be considered as a real estate for personal residence as well. In this case, the company will have to pay land and building tax, regardless of whether it receives income or not. The local administration can do random checks, in case of non-payment, the company will have to pay the amount of tax for all years of using by its director, as well as fines for delay.

The company will be exempted from land and building tax only if the company's office is located in the house.

Thus, any property that is not used for living by the owner or to accommodate the office of the owner’s company can be considered as a real estate for commercial purposes.

The only opportunity to reduce tax costs for a foreigner who wants to buy a land plot and a house in Thailand on a company name and use it for personal needs is to register the land as the property of the company, and the house as the property of a foreigner. In this case, the foreigner will live in his premises, but rent only land from the company. However, owning or transferring ownership of an existing house in Thailand without land is only possible if the construction title to the house is separated from the land.

Fines

In case of failure to submit a land and building tax declaration, owner can oblige to pay a fine of 200 baht.

Also, for violation of the deadlines, a fine of 2.5% of the tax amount if the payment was delayed not more than one month, up to 5% - two months, 7.5% - three months and 10% - more than 3 months. After the fourth month of delay in tax payment, authorities have the right to confiscate and sell property in order to collect debts.

For all questions of paying land and building tax, please contact: +66 87-348-57-03 (WhatsApp, Viber).

Author: Aleksandra Agapitova

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