Understanding Thailand’s Land and Building Tax Act: A Guide for Property Owners 

A legal overview of Thailand’s Land and Building Tax Act B.E. 2562, covering tax categories, assessment procedures, and compliance obligations.

I. Introduction 

Thailand’s Land and Building Tax Act B.E. 2562 (2019) restructured the country’s property tax system, replacing the outdated House and Land Tax and Local Development Tax. This law introduces a unified framework that categorizes land and buildings based on usage and applies tax rates according to appraised values. 

This article provides a comprehensive breakdown of tax categories, applicable rates, assessment procedures, and penalties under the current legal framework. 

II. Tax Categories and Rates 

Tax under the Act is imposed annually, with specific rates depending on the use of the property. The law defines four main categories: 

1. Residential Property (For Habitation) 

Applies to land and buildings used as a primary or secondary residence. 

Appraised Value (Million Baht)	Main Residence (Owned land + house)	Other Residences	Tax per Million
0 – 10	Exempted	0.02%	200 Baht
10 – 50	0.02%	0.02%	200 Baht
50 – 75	0.03%	0.03%	300 Baht
75 – 100	0.05%	0.05%	500 Baht
Over 100	0.10%	0.10%	1,000 Baht

Exemptions: 

• For a first residence owned with land, the first 50 million Baht of appraised value is tax-exempt. 
• For a first residence where the person owns only the house, the first 10 million Baht is tax-exempt. 

2. Vacant or Unused Land

Land that is not actively developed or used is taxed to encourage development. The base rate begins at 0.3%, with an increase of 0.3% every three years for continued vacancy, capped at 3%. 

Appraised Value (Million Baht)	Tax Rate (%)	Tax per Million
0 – 50	0.3%	3,000 Baht
50 – 200	0.4%	4,000 Baht
200 – 1,000	0.5%	5,000 Baht
1,000 – 5,000	0.6%	6,000 Baht
Over 5,000	0.7%	7,000 Baht

Example: If a land plot remains vacant for 30 years, the cumulative tax burden could exceed 495,000 Baht. 

3. Commercial or Industrial Use

Land and buildings used for commercial or industrial purposes are taxed as follows. Unlike vacant land, these rates do not increase over time. 

Appraised Value (Million Baht)	Tax Rate (%)	Tax per Million
0 – 50	0.3%	3,000 Baht
50 – 200	0.4%	4,000 Baht
200 – 1,000	0.5%	5,000 Baht
1,000 – 5,000	0.6%	6,000 Baht
Over 5,000	0.7%	7,000 Baht

Maximum cap: From 2022 onwards, tax rates must not exceed 1.2% of the appraised value. 

4. Agricultural Use

Agricultural land is taxed at the lowest rates to support the agricultural sector. 

Appraised Value (Million Baht)	Tax Rate (%)	Tax per Million
0 – 75	0.01%	100 Baht
75 – 100	0.03%	300 Baht
100 – 500	0.05%	500 Baht
500 – 1,000	0.07%	700 Baht
Over 1,000	0.10%	1,000 Baht

Tax Cap: The total tax payable must not exceed 0.015% of the appraised value. 

III. Tax Assessment and Collection Procedures 

1. Property Survey: 
   Tax officers conduct an inspection to determine the property’s type, size, and use. 

2. Appraised Valuation: 
   The Treasury Department issues the official valuation, which is sent to the relevant Local Administrative Organization (LAO). 

3. Public Notification: 
   The LAO announces the list of taxable properties within 30 working days. 

4. Owner’s Obligations: 

• Submit Por.Dor.Sor. 3 – Land and building list 

• Submit Por.Dor.Sor. 4 – Condominium plan (if applicable) 
  Corrections may be filed with the land office by the end of March annually. The authorities must respond within 30 working days. 

5. Tax Notification: 
   The LAO notifies property owners of tax amounts by February 1st each year. 

6. Assessment Report Issuance: 
   A report is issued within February. 

7. Payment or Objection: 

• If the taxpayer agrees: Payment is due by the end of April via: 
  • Bank transfer 
  • Post office 
  • Local administrative offices 

• If the taxpayer disagrees: 
  • Appeal to the Assessment Board 
  • Further appeal to the Appeal Committee (within 30 days) 
  • If still unsatisfied, file a court complaint within 30 days of the final appeal result 

8. Dispute Resolution Tips: 

• Prepare all supporting documents (e.g., proof of residence, power of attorney) 
• Use the QR code on Por.Dor.Sor. 4 for digital verification 
• Submit separate forms for properties in different districts 

IV. Penalties for Non-Compliance 

Condition	Penalty
No payment after warning	40% of unpaid tax
Late payment after receiving warning	20% of unpaid tax
Late payment before receiving warning	10% of unpaid tax

Interest Charges: 

• Standard: 1% per month 
• With installment approval: 0.5% per month 

V. Criminal Liability 

Providing false information or forged documents to evade taxes may result in: 

• Imprisonment: Up to 2 years 
• Fine: Up to 40,000 Baht 

In case of a legal entity, the director or responsible officer may be personally liable. 

VI. Transitional Provisions (2020) 

In its first year of enforcement, the Ministry of Interior issued Letter No. MorTor 0808.37 Wor (11 December 2019), which granted: 

• A 4-month extension to the original payment deadline 
  → Tax payments were accepted until August 2020 without penalty 
• Permission for installment payments until October 2020 

VII. Conclusion and Recommendations 

Thailand’s Land and Building Tax is a crucial part of the country’s property law landscape. Property owners must understand their obligations to remain compliant and avoid unnecessary financial or legal consequences. 

Key Takeaways: 

• Review your property’s classification annually 
• Confirm appraised values and ownership records 
• Submit Por.Dor.Sor. forms on time 
• Watch for tax notifications each February 
• Pay or dispute assessments by the April deadline 
• Act quickly in case of appeal or correction needs 
• Consult a legal expert for complex or multi-property cases