Property and inheritance taxes will be imposed this year, with the property tax rate for residential use likely to be set at 1,000 baht for every 1 million baht of the appraised value.
Prime Minister Prayuth Chan-ocha told the National Legislative Assembly on Friday tax reforms would be carried out, with the two new taxes to be collected starting this year.
While the existing personal income and corporate income tax rates remain the same, taxes involving trade will be revamped and the taxpayers' base expanded by introducing the new taxes, which are supposed to have the least impact on low income earners, he said.
According to a Thai Rath Online report, the annual property tax rates will likely be based on each 1 million baht of appraised prices: 500 baht for farm land; 1,000 baht for residential use; 5,000 baht for commercial use and 20,000 baht for vacant plots.
As for the inheritance and gift tax bill, the focus will likely be on the receiver, who will be taxed when inheriting an estate and when he has been transferred assets two years before the giver dies, according to a Prachachart Turakit report on Aug 22, 2014.
The rates will likely be progressive. For inheritance, the rate is 0% for assets worth not more than 50 million baht or the first 50 million baht of the estate; 10% for the portion between 50-200 million baht and 20% for the portion that exceeds 200 million baht.
For gifts, the rate is 0% for assets worth not more than 10 million baht or the first 10 million baht of the assets, 10% for the portion between 10-40 million baht and 20% for the portion exceeding 40 million baht.
Pushing the property and inheritance taxes has been an uphill task in Thailand. It became law briefly during the Pridi Banomyong government but was later abolished.
It was reintroduced again during the post-coup Surayuth Chulanont government in 2006. The efforts were aborted after arguments such laws should only be passed by an elected government and lawmakers.