Taxes on housing transactions in Thailand may increase by 30%

Thailand's Treasury Secretary has announced an expected 30% increase in the tax on housing transactions, which will follow a complete revaluation of land values based on the individual characteristics of each plot.

“The total tax collection could reach BHT 30-50 million after 32 million plots of land are individually assessed,” says Treasury Secretary Chakkrit Prapantakul. “The assessed value of the 8 million plots that have already been assessed is 30% higher than the current value. The higher assessed value will also increase the transaction tax collection, in addition to the higher tax collection generated after the land and building tax comes into effect.”

Recall that the Thai government is currently reforming the land and building tax, which has drawn widespread criticism from the local population. In particular, the Treasury discussed the possibility of abolishing the building tax to ease the tax burden for the poor. However, last week, Finance Minister Sommai Phasee announced that the new amendments would introduce a building tax, but its collection would begin three years after the law comes into force. It is expected that the bill will be submitted to the Cabinet of Ministers within a few weeks.

Once the law comes into effect, within about four years, the assessed value of residential properties nationwide could rise by 25% – and skyrocket in “special economic zones” such as Notanburi’s Bang Bua Tong and Bangkok’s Sukhumvit areas.