Land and building tax discount in effect for 2022

Land and building tax discount in effect for 2022

The land and building tax is still offering a payment discount this year according to the law passed to ease the burden on landowners, says Finance Minister Arkhom Termpittayapaisith.

He said this is the last year the land and building tax law offers such a discount to landowners.

The law took effect in 2020 and offers a tax payment discount for the first three years of enforcement.

In 2020, the government also launched the 90% land and building tax cut to ease the burden on owners of land and building sites because of the severe impact of the pandemic.

This tax cut was in effect from 2020-2021 as the Finance Ministry declined to extend it past last year. However, the existing tax discount remains valid through this year.

Regarding the tax discount rules, if landowners are assessed a tax higher than the amount calculated under the previous land tax, they are allowed to pay the previous tax rate.

Any excess amount above the previous tax rate is charged 25% of the excess in 2020, 50% of the excess in 2021 and 75% of the excess in 2022.

For example, in 2020 if taxpayers had to pay 120 baht under the new law but only 100 baht in tax under the old tax system, this means they would pay a total of 105 baht.

This calculation is based on a 100-baht levy under the old tax system, plus 25% of the excess 20 baht, which is 5 baht.

The government has launched a host of measures to relieve the economic burden caused by the pandemic, which started in late March 2020.

The 90% land and building tax cut cost the state coffers around 35 billion baht per year during 2020-21.

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