Taxation

Taxes are imposed both at national and local levels, with the central government being the main taxing authority. The Ministry of Finance administers the majority of tax collections through:
The Customs Department, responsible for collection of import and export duties.
The Revenue Department, in charge of collecting income tax, value added tax, specific business tax, and stamp duty.
The Excise Department, which collects excise tax.
Local Authorities, wich collects property tax and municipal tax.

In general, tax administration follows the self-assessment system. The taxpayer has a legal duty to declare his/her income and pay tax to the authorities. The declaration and tax payment are regarded to be correct. However, additional assessments may be made by authorities in case of failure to file tax returns or filing of false or inadequate tax returns.
Appeal against additional assessments is allowed.

There are no property taxes as such in Thailand that are exactly equivalent to the property taxes in the west. Property tax is imposed and collected annually. There are two kinds of property tax in Thailand: house and land tax and local development tax. Under the House and Land Tax Act B.E. 2475 (A.D. 1932) as amended, the tax is imposed on owners of houses, buildings, structures, or land rented or otherwise put to commercial use. Taxable property under house and land tax includes houses not occupied by the owner, industrial and commercial buildings, and land used in connection therewith. The tax rate is 12.5% of actual or assessed annual rental value of the property.
Under the Local Development Tax Act B.E. 2508 (A.D. 1965) as amended, the tax is imposed upon the person who either owns or is in possession of the land. Tax rates vary according to the assessed value of the land. Allowances are granted for land utilized as personal dwellings, raising of livestock, and cultivation of crops by the owner. The extent of the allowances differs according to location of the land.

On all purchase/sale of property in Thailand there is a stamp Duty of 0.5%, a transfer fee of 0.01%, a business tax of 0.11% levied against an owner who has been in registered possession of the property less than 5 years, and Income Tax. There is no Capital Gains Tax in Thailand, unlike many countries, and Income Tax (usually between 1.0 - 3.0%) on property is the comparable replacement. There are no set rules on who pays the income tax, and it is just another part of the bargaining process, as with all the other costs of the transfer of ownership.


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