Thailand's land tax law expected to be promulgated in 2015

BANGKOK, March 5 (TNA) - Thailand's new land tax law is expected to be promulgated within this year. Permanent Secretary for Finance Rungson Sriworasat told journalists of the information on Wednesday, one day before his ministry's planned discussion on details of the country's land taxation, with a possible exemption for houses priced under one million baht. Rungson said results from Thursday's discussion at a meeting of the tax reform committee of the National Legislative Assembly (NLA), chaired by Finance Minister Sommai Phasee, will be proposed to the Cabinet for further consideration. Rungson noted that the land and building tax has been initially set at 12.5 per cent. According to the senior official, as local property prices, estimated two decades ago, are used as the basis for the tax calculation, the present taxation covers only buildings while empty land is exempted, which supports speculative land purchase and land acquired for this purpose is not used. The senior official pointed out that new land and building tax rates will, thus, be lower, but more categories of property will be subject to taxation. Meanwhile, the Thai Ministry of Finance plans to set the tax ceilings at 0.25 per cent for farmlands, 0.5 per cent for residences, 2 per cent for commercial land plots and 0.5 per cent for empty land. The tax rate for empty land will double every three years as long as it is unused, but the rate will be capped at 2 per cent. There will also be an organic law to set exact tax rates. For example, a house, priced at 1-3 million baht, will be subject to a rate half its ceiling, while a house cheaper than one million baht will be exempted. The taxation will be based on newly estimated land prices, while the Ministry of Finance's Treasury Department will finish the appraisal by the end of this year. (TNA)