Postponement of land and building tax collection
On 12 March 2019, the Land and Building Tax Act, 2562 B.E. (“the Act”), was published in the Government Gazette. Tax collection for land and buildings under this Act was to begin on 1 January 2020. However, on 11 December 2019, the Ministry of Interior announced that it was postponing the timeline for procedures under the Act.
Keywords: Mazars, Thailand, Tax, Land and Building Tax Act, Ministry of Interior, Ministry of Finance
The postponement is due to a delay by the Ministry of Finance and the Ministry of Interior in preparing related laws. According to Section 98 of the Act, the Ministry of Interior and Ministry of Finance shall enact related laws, such as ministerial regulations, rules and announcements, within 120 days of the date that the Act comes into effect, which was 10 July 2019. However, to date, these related laws have not been completed. As a result of the delay, local administrative organizations are not aware of the details, rules, and procedures to perform tax collection duties according to the Act.
Therefore, according to the announcement of the Ministry of Interior, the law is still in effect on 1 January 2020, but the timeframe of each procedure under the Act is postponed an additional four months, as shown in the table below:
No. | Procedure | Responsibility | Timeframe | |
Old | New (Expanded) | |||
1. | - Prepare a list of land and buildings for announcement; and - Send information to taxpayer | Local administrative organization | By November 2019 | By March 2020 |
2. | Announce appraisal price, tax rate and other necessary information | Local administrative organization | Before 1 February 2020 | Before 1 June 2020 |
3. | Notify taxpayer by sending tax assessment | Local administrative organization | By February 2020 | By June 2020 |
4. | Pay tax | Taxpayer | By April 2020 | By August 2020 |
5. | Pay tax in instalments | Taxpayer | First instalment – by April 2020 Second instalment – by May 2020 Third instalment – by June 2020 | First instalment – by August 2020 Second instalment – by September 2020 Third instalment – by October 2020 |
6. | Send warning letter to taxpayer for overdue tax payment | Local administrative organization | By May 2020 | By September 2020 |
7. | Notify land office of unpaid tax | Local administrative agency | By June 2020 | By October 2020 |
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