On 7 December 2021, the Cabinet has approved to remain the rate of land and building taxation and the draft Royal Decree Stipulating the Rate of Land and Building Tax B.E. …. (“Draft Royal Decree”) as proposed by the Ministry of Finance and reviewed by the Council of State.
The Ministry of Finance considered and has approved to remain the rate of land and building taxas specified in the transitory provision, i.e., Section 94 of Land and Buildings Tax Act B.E. 2562 for the collection of land and building tax from 2022 onwards under the following reasons:
- Most taxpayers, under hearings arranged by the Fiscal Policy Office of the Ministry of Finance, agreed with the current land and building taxation e.g., basis tax calculated by assessed value, different rates of tax depending on the types of utilization, and tax burden of the taxpayers are reduced or remains the same as compared with the tax burden by house and land tax or land development tax.
- Progressive tax rates are fair and appropriate to the current situation. This makes people with higher land or building values have a greater tax burden than those with lower land or building values. It also does not create an unreasonable tax burden.
- Due to mitigation of impact of covid-19 epidemic, the Royal Decree on Land and Certain Types of Land Tax Reduction B.E. 2563 and The Royal Decree on Land and Certain Types of Land Tax Reduction (No.2) B.E. 2564 have reduced the amount of tax at a rate of 90% of the amount of tax calculation, in which the taxpayer has not yet been aware of the full real tax burden. Therefore, the same tax rate should be remained for a while.
- Due to changing of tax administration and procedure, the Department of Local Administration does not have the database of land and building tax of each taxpayer that can be efficiently processed the taxes Collection.
The rates of land and building tax under the Draft Royal Decree are as follows:
| Types of utilization | Tax rates in percentage according to the value of land and/or building |
| (1) Land and building used for agricultural purpose | 0.01 – 0.1 |
| (2) Land and building used for residential purpose | 0.02 – 0.1 |
| (3) Land and building used otherwise than in (1) or (2) | 0.3 – 0.7 |
| (4) Land and building left empty or unused as otherwise reasonable for its condition | 0.3 – 0.7 |