Thai Cabinet approves 90% reduction in land and building tax for 2021
BANGKOK - The Thai Cabinet has voted to reduce land and building taxes for the 2021 tax year by 90% of the amount calculated in accordance with the Land and Building Act, B.E. 2562 (2019) (the Land Tax Act). Similar to a reduction implemented last year, this measure intends to relieve the economic impact that the public and business operators have endured from the COVID-19 outbreak.
Lawyers Baker & McKenxie say local authorities will calculate the land and building tax on each property by determining its official appraisal value, deduct eligible tax base exemptions, and apply the applicable tax rate depending on the category of the land and buildings under the Land Tax Act.
After that, the authority will apply a 90% discount on the amount. The Cabinet resolution grants this 90% reduction to all four categories of land and buildings under the Land Tax Act - that is, residential use, agricultural use, commercial use, and vacant properties or those that are not properly being used.
The Royal Thai Government will shortly enact a Royal Decree to implement this land and building tax reduction for the 2021 tax year. Once published in the Government Gazette, the Royal Decree will take effect from the following day.