4 replies to this topic

[TheYenta]

One of the big reasons why so many farangs and other foreigners buy real estate in Thailand rather than rent is the fact that there are no real estate taxes. If the current government has its way, there will soon be a law that's going to change that situation in two years.

"In essence, the [new] law seeks to impose taxes on ownership of land and property whether it is for living, commercial, industrial or agricultural purposes. Ownership of unutilised land may face higher taxation than utilised land, as the law is intended to encourage owners to make use of the land in a productive manner rather than leave it idle.

The most important feature of the law is that the taxes will not go into the national coffers but to local governmental bodies such as municipal or tambon administration organisations, which will be tasked with tax assessment and collection."

http://www.bangkokpost.com/opinion/opinion...is-praiseworthy
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It doesn't take a genius to imagine corrupt local officials in Pattaya or elsewhere running around assessing properties for tax purposes, zonking foreign-owned real estate and condos with huge assessments while making sure that all their cornies, relatives and friends get very low assessments. It could become just another example of two-tier pricing schemes, except this one could cost a lot more money.

[Bob]

I do grant you that, given the history here, one could expect a fairly corrupt administration of any property tax laws; however, the notion of governments raising revenue by some property tax seems to be accepted in many western countries.

I don't know if it's a "property tax" but I've repeatedly heard Thais tell me that they have to make an annual payment for the property they own. Just a month or so ago, a Thai gentleman I trust told me that he and his family pay 50 baht per rai per year although I don't remember if he told me which governmental entity receives the payment. It's not much, of course, but some payment appears to exist already.

[spot the dog]

Do you really think that the politicians will vote in a tax that affects so many MPs who are major land holders?

My bet is you will not see any land tax law passed in the lifetime of this government.

[UncleSam]

Do you really think that the politicians will vote in a tax that affects so many MPs who are major land holders?

If you had a thousand baht for every law that gets passed and then ignored or circumvented here, you'd be a rich man. Why do you think that Santika Pub never paid a baht in excise taxes for over ten years ? The royals will be exempt, the super-rich autocrats, business people and politicians will evade the taxes with bribes for low assessments; the poor don't own enough land to matter or care; so the middle class and foreigners will end up paying the freight.

Hehehe.....

[B.I.G.]

The royals will be exempt, the super-rich autocrats, business people and politicians will evade the taxes with bribes for low assessments; the poor don't own enough land to matter or care; so the middle class and foreigners will end up paying the freight.

If this real estate tax passes, which I doubt, the amount of local corruption is going to skyrocket as local politicians and bureaucrats get their hands on a whole new trough to feed from. That's why Opposite is proposing it. He's trying to buy the political support of the local politicians for the next Parliament elections.