A friend who doesn’t 'do' the Internet has asked me to post the following query here ..."Has any expat holding residential property in a company name received a tax bill from the city of Pattaya, retroactive for ten years?"
He has just received a tax bill for the past 10 years which comes to about UD$5,000. He lives in a house owned by a company he created for this purpose. The company has no income so pays no income tax. He has talked to lawyer(s) and real estate professional(s) who tell him this is something newly introduced by Pattaya City Hall ... it seems to not be national or provincial. Does anybody here have any relevant comments or observations? Many thanks.
Pattaya property tax question
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Daleinpattaya
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Daleinpattaya
- Posts: 90
- Joined: Mon Oct 21, 2019 7:59 am
- Has thanked: 118 times
- Been thanked: 5 times
Re: Pattaya property tax question
Just to close this out ... my friend paid the taxes ... he said, with a grimace!!
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ISAC69
Re: Pattaya property tax question
With the questionable reliability of the Thai law and the frequent changes in the laws my best advice is not to buy any property in Thailand even if you have the money just rent one if you need.
Re: Pattaya property tax question
Dale,Daleinpattaya wrote: ↑Mon Oct 21, 2019 9:43 pm A friend who doesn’t 'do' the Internet has asked me to post the following query here ..."Has any expat holding residential property in a company name received a tax bill from the city of Pattaya, retroactive for ten years?"
He has just received a tax bill for the past 10 years which comes to about UD$5,000. He lives in a house owned by a company he created for this purpose. The company has no income so pays no income tax. He has talked to lawyer(s) and real estate professional(s) who tell him this is something newly introduced by Pattaya City Hall ... it seems to not be national or provincial. Does anybody here have any relevant comments or observations? Many thanks.
A new Land & Building Tax Act (BE 2562) has recently been approved and will be effective starting January 1, 2020. This new Act will replace the 1932 version which only required property owners to pay taxes on rental income and not the asset itself, essentially serving as an income tax rather than a property tax scheme. This new Act (BE 2562) is a national Act and effects everyone and is intended be managed at the Provincial level.
BE 2562 seems to be targeting properties which are owned in company names, rental properties, and those which exceed 50M in appraised value. According to BE 2562, a person who owns residential property which is in his name will be considered exempt from paying taxes, if the property (house or condo) is less than 10M Baht and not being used as a rental property. Those who have properties in company names, or are renting their property will have to pay taxes.
I am not a lawyer or by-any-means an expert on Thai law. I simply read BE 2562.
I don't know where your friend is getting his legal advice, but if your friend wasn't renting or leasing his home, according to the previous 1932 ACT, he wouldn't have to pay any taxes. The fact that the lawyers that your friend spoke with suggested that this new tax requirement was isolated to Pattaya City Hall is even more confusing.
My guess (for what it's worth) is that back taxes are being collected from those who were renting or leasing their properties.
I'm not in a position to offer anyone advice on this, other than to suggest that your friend read the law for himself. Below is an Overview of BE 2562 if he's interested.
https://orbis-alliance.com/orbis-news/n ... n-thailand