The cabinet on Tuesday approved a royal decree and two ministerial regulations to allow owners of many types of property to enjoy a deduction of 50-90% under the Land and Building Tax Act, due to come into force on Jan 1.
Government spokeswoman Narumon Pinyosinwat said a 50% tax deduction will be given to inherited land and buildings and land where a power plant is located. The deduction also applies to land and buildings related to generating electricity.
The owner of inherited land and buildings must have his/her name on the house registration document and have registered the property's rights and legal transactions before March 13, 2019.
A 90% tax deduction will be granted to land or buildings awaiting sale belonging to specialised financial institutions, people or community banks, asset management companies, as well as land or buildings under construction for residential, industrial factory, condominium, industrial estate, private educational institute and university use.
The hefty deduction is also given to land or buildings used for public services such as sports grounds, zoos and theme parks.
Ms Narumon said the 90% tax break for land or buildings awaiting sale belonging to specialised financial institutions, people or community banks, or asset management companies will be awarded for a total of five years starting from the date such assets are listed, and not more than three years for residential and industrial purpose starting from the date the projects receive a land allotment payment.
A deduction of no more than three years will be given to condominiums starting from the date the projects receive the construction permit, while the same period is given to industrial estates starting from the date the project receives the establishment permit.
Ms Narumon said the tax deduction is needed to ease the financial burden of the public. Local administrative organisations that collect tax will be subject to losses of about 2.7 billion baht in revenue, she said.
The government has estimated fetching 39.4 billion baht from land and building tax collection in 2020.