New Land and Building Tax

The new Land and Building Tax Act came into force on March 13, 2019 and will be applied starting January 1, 2020.

The law changes many provisions of the previous version (see earlier articles on Land and Building Tax in Thailand and payment deadlines — valid until the end of 2019), and also introduces amendments to other existing land laws.

Who Must Pay the Tax

Under the new law, individuals and legal entities who own land or buildings as of the first day of the year must pay land and building tax to the local administration.

Payment Deadline

Tax must be paid by the end of April of the following year
Payment is based on the official notice issued by the local authority

Tax Base

The tax is calculated based on the cadastral value of:

land
buildings
condominium units

Maximum Tax Rates

Rates are determined annually by government decree but cannot exceed:

Agricultural property: 0.15%
Residential property: 0.3%
Other property (including commercial): 1.2%
Unused property: 1.2%

If property remains unused for more than 3 years:

the rate increases by 0.3% every 3 years, up to a maximum of 3%

Definition of Residential Property

For the purpose of this law:

Residential property = used for personal living purposes
If a condominium is rented out, it is classified as “other property” (commercial)

⚠️ Important:

The owner’s name must be listed in the house registration book
Otherwise, tax exemptions do not apply

Tax Formula

Tax = (Property Value – Tax-Exempt Amount) × Tax Rate

Example 1

Condominium owned by an individual
Used for personal residence
Owner’s name is in the house book
Cadastral value: 12,000,000 THB
Residential tax rate (2020): 0.02%
Tax-exempt amount: 10,000,000 THB

Tax = (12,000,000 – 10,000,000) × 0.02% = 400 THB

Example 2

Condominium owned by an individual
Rented out (commercial use)
Cadastral value: 12,000,000 THB
Tax rate: 0.3%
No exemption applies

Tax = 12,000,000 × 0.3% = 36,000 THB