The Thai Chamber of Commerce is concerned that the new Land and Building Act, scheduled to be implemented in 2019, will have an adverse impact on the property business as it will allow state officials to use their adjustment in assessing tax rate on land prices, the chamber’s director Atip Bichanond said at a seminar, New Land and Building tax, yesterday.
He said that chamber is conducting a survey on the issue among its members and will point out the weak points of the act to the government for revision before the date of implementation.
The new Land and Building Tax Law will introduce two major changes to tax calculations: 1) A shift to a cost approach assessment and 2) Levying tax based on land use.
Firstly, tax calculation using the cost approach under the new law is a transition from the previous income approach that heavily depended on officers’ assessment views. Under the new scheme, tax determination is based on the appraised value of the property, calculated from the sum of standard land and building prices set by the Treasury Department.
Secondly, land use categories will be considered under the new tax module. Previously, tax rates were considered based on the annually appraised value of the asset.