Update to the Land & Building Tax: Exemptions & Reductions

Under the new Land and Building Tax Act B.E. 2562 (2019), individuals and juristic persons who have ownership, possessory, or usage rights over land or buildings (including condominium units) as of January 1 each year will be required to pay land and building tax to the local administrative authorities. This tax took effect on January 1, 2020.

Deadline Postponed for 2020 Land and Building Tax Payment

Under the act, payment is due at the end of April of each year. However, the deadline for payment for the first year has been extended from 30 April 2020 to 31 August 2020.

The tax rates vary depending on the purpose for which the land or building is used. For more details about the tax rate, please see our previous article on the new act.

 Tax Exemptions

In addition to the tax exemptions originally provided in the act, the following types of land and buildings are also exempt from the land and building tax according to the Ministerial Regulations Prescribing Properties Exempted from Land and Building Tax B.E. 2562 (2019): 

  • Any crown properties, or properties of the royal family, listed in clause 1 of the Ministerial Regulations, and other properties that are not used for the purpose of obtaining benefits
  • State enterprise properties that have not been used to obtain any benefit for the state enterprise’s business
  • Vacant land located within airports, surrounding runways, or used for aircraft aprons
  • Land and buildings used for railways, including mass rapid transit railways
  • Common public utilities within National Housing Authority projects
  • Private sector museums under Ministry of Finance notifications
  • Wastewater treatment ponds used as part of a building’s wastewater treatment system
  • Public ponds
  • Roads, yards, and fences
  • Land that is legally prohibited to use
  • Offices of foreign economic and trade organizations established in Thailand

Tax Reductions

On January 20, 2020, the Royal Decree Reducing Land and Building Tax B.E. 2563 (2020) was announced in the Government Gazette. This decree, which came into effect on January 1, 2020, reduces land and building tax amounts as follows:

a.  50% Tax Reduction

b.  90% Tax Reduction

For more details on the land and building tax, or on any aspect of real estate or taxes in Thailand, please contact Tilleke & Gibbins at [email protected] or +66 2056 5555.