Property taxes in Thailand
- Published:
- Updated:
- By M2HomeHub
- 0 Comments
How not to overpay and legally reduce your rate
Recently, owners of Thai condominiums have begun to receive notifications in large numbers about the need to pay an annual tax. Many are faced with the fact that the calculation is made at the rate0.3%, although we expected a significantly lower amount. In this article we will look at what the size of tax payments depends on and how a home owner in Thailand can confirm the right to a preferential rate.
The difference between rates 0.02% and 0.3% - main criteria
Thailand tax legislation provides for a progressive scale, but for most objects worth up to 50 million baht, two main figures are relevant.
Who is entitled to the minimum bid of 0.02%?
It is applied only if two conditions are met:
- Form of ownership - Freehold.If the apartment is in leasehold (long-term lease), the developer remains the legal owner, and the benefit does not apply to a private person is distributed.
- Personal use.The property must be used for the residence of the owner or members of his family, and not for commercial profit.
Important: For apartments inLeasehold there is always a fixed rate 0.3%, regardless of whether you live there yourself or not.
How to transfer tax from 0.3% to 0.02% if you do not rent out housing?
If the tax service sent a receipt with the maximum coefficient, but you use the apartment only for yourself, this decision can be challenged. You will need to prove the fact of personal residence.
Suitable arguments are:
- Valid visa and stamps in your passport confirming your stay in the country.
- Registration history for the TM30 form.
- Certificate from the management company (Management Office) stating that the property was not rented out to third parties persons.
- Photos of the interior confirming your personal presence.
Yellow House Book (Tabien Baan): real benefit or myth?
There is an opinion that receiving the “yellow book” automatically resets taxes. This is not entirely true. The book itself only confirms your registration at the address, but not ownership.
However, it provides an important advantage: data-sfc-pl="|[]" data-sfc-cb="" data-complete="true" data-processed="true" data-copy-service-computed-style="font-family: "Google Sans", Arial, sans-serif; font-size: 16px; font-weight: 400; margin: 0px; text-decoration: none; border-bottom: 0px rgb(10, 10, 10);">If there is a yellow book and actual residence, the owner receives a tax deduction. First10 million baht from the value of the property are not subject to tax.
Example for an apartment priced at 15 million baht:
- With the yellow book (you live yourself):tax is paid only with 5 million (15 - 10 preferential). Amount to be paid: 1,000 baht.
- Without the yellow book (you live yourself): tax 0.02% of the entire amount. Total: 3,000 baht.
- Rent or Leasehold: 0.3% rate applies. The tax will be 45,000 baht.
Results: is it worth creating Tabien Baan?
The maximum savings from the yellow book is only 2,000 baht per year. Considering the complexity of the process (you need a long-term visa, the presence of Thai witnesses and time to go to the municipality), many owners prefer to simply pay the 0.02% rate without completing unnecessary paperwork.
Main rule:in order not to pay 0.3%, promptly notify the tax authorities that your apartment is your home, and not a business asset.
Tags:
0 Comments
- No comments found
