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Articles
Two-month extension for the collection of Land and Building Tax for the fiscal year 2024
Currently, Thailand collects Land and Building Tax (“LBT”) from the OWNER of land and/or buildings, or from the PROPRIETOR or BENEFICIAL OWNER of land and/or buildings who has acquired ownership, taken possession of or made use of the land and/or buildings (collectively “Taxpayers”) by 1 January of the applicable tax year. The LBT shall be collected at different rates according to the purpose of usage of the particular land and/or buildings. In such regard, the Taxpayers will receive a tax assessment letter within February of every tax year and shall settle such tax due within April of every tax year.
Although the Taxpayers will no longer receive a reduction on the LBT for the fiscal tax year 2024, nevertheless, the tax payment period has been extended from within April 2024 to June 2024 according to the Announcement of the Ministry of Interior re: Extension of the due date for implementation of the Land and Building Tax Act 2019 (B.E. 2562) (the “LBTA”) for the fiscal tax year 2024.
Land and Building Tax Rates for the fiscal tax year 2024
As mentioned above, the Taxpayers will no longer receive a reduction on the LBT for the fiscal tax year 2024. Therefore, the Taxpayers will pay 100% of the tax rate depending on which purpose the land and/or buildings are used for. Details of the LBT rates are set out below:
| Type of Land | Section 37 of the Land and Building Tax Act 2019 (B.E. 2562) | Royal Decree prescribing Land and Building Tax Rates 2021 (B.E. 2564) |
| Agricultural use | Maximum 0.15% | 0.01-0.1% |
| Residential use | Maximum 0.3% | 0.02-0.1% |
| Other, e.g. commercial or industrial use | Maximum 1.2% | 0.3-0.7% |
| Vacant or unused | Maximum 1.2% | 0.3-0.7% |
PENALTIES for late payment
Taxpayers who fail to pay the tax within the due date shall be liable for a penalty of 40% of the outstanding tax amount. However, if the Taxpayers settle the LBT before receiving a notification letter, they will qualify for the reduction and pay the penalty at the rate of 10% of the outstanding tax amount.1
Furthermore, if Taxpayers have already received the notification letter and pay the LBT within the time limit as stipulated therein, they can pay the penalty at the rate of 20% of the outstanding tax amount.2
| 1 Refer to Section 86 of the LBTA 2 Refer to Section 69 of the LBTA |
Regarding Taxpayers who fail to settle the LBT within the due date, they shall also be liable to a surcharge of 1% of the outstanding tax amount per month or a part thereof but capped at the amount of LBT due. Additionally, the penalty cannot be calculated as part of the surcharges, which shall be calculated from the due date until the date upon which the Taxpayers settle the LBT in full.3
This is intended merely to provide a regulatory overview and not to be comprehensive, nor is it to provide legal advice. Should you have any questions on this or on other areas of taxation law, please do not hesitate to contact our Tax Team at SCL Nishimura & Asahi Limited.
Areeya Ananworaraks
Counsel
Budhima Kerdsiri
Counsel
Pairaya Yangpaksi
Associate
Nanthaya Suchintawong
Associate
Hatairat Sukprasert
Associate
| 3 Refer to Section 70 of the LBTA |
Authors
Budhima provides advice on tax compliance and a wide variety of tax-related work. In particular, she has extensive experience with accounting transactions and tax planning. Further, she has handled tax counseling and tax controversies and has substantial experience representing and advising individuals and major corporations in tax disputes, including filing appeal letters for tax assessments, which were assessed by the Revenue Department, the Customs Department, the Excise Department, and local tax collection agencies such as those dealing with land and building tax. In addition, she has more than 10 years of experience as a public speaker and columnist for tax magazines, focusing on tax planning and tax compliance for individuals and companies seeking to maximize their tax privileges under Board of Investment (BOI) promotion and accounting adjustments to comply with Thai tax laws.
Budhima was a columnist for the Tax Documentation Journal, the No. 1 public journal related to accounting and taxation published by Dharmniti Press Co., Ltd., and she is also the author of “Differences and similarities between accounting profit and taxable profit,” a book that has been published twice.
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Areeya Ananworaraks was previously a legal officer at the Thai Revenue Department. She has 18 years of legal and tax consulting experience. Her specialties including corporate matters, M&A, joint venture, IPO & REIT, corporate secretary (company secretary), commercial contract, property, family business, international business, offshore incorporation, corporate income tax, personal income tax, international tax, value added tax, specific business tax, stamp duty, petroleum income tax. Areeya has extensive on cross border transactions, tax inspection, petroleum business and legal matters. In addition, she has advised numerous MNCs clients on establishing operations in Thailand and listed companies in the Thai Stock Market as well as carrying on due diligence assignments.