Property taxes are a type of government levy. Governments require property taxes for revenue.
Revenue funds public services.
Property taxes differ from income taxes. Income taxes depend on earnings.
Property taxes depend on property value. Property taxes differ from sales taxes.
Sales taxes apply to purchases. Property taxes apply to property ownership.
Property taxes feature annual assessment. Annual assessments determine property value.
Property value determines tax liability. Property taxes feature progressive rates.
Progressive rates increase with value. Higher value properties incur higher taxes.
Property taxes feature exemptions. Exemptions reduce tax for eligible properties.
Examples include homes for the elderly.
Property taxes share features with other taxes. All taxes provide government revenue.
Examples include income taxes and sales taxes. All taxes require legal compliance.
Non-compliance results in penalties. All taxes undergo periodic reviews.
Reviews ensure relevance to current economic conditions.
Property taxes feature unusual aspects in Bangkok for foreigners. Foreigners face ownership restrictions.
Restrictions limit property types foreigners can own. Foreigners encounter double taxation.
Double taxation occurs when paying both Thai and home country taxes. Foreign investors benefit from treaty protections.
Treaty protections prevent unfair treatment.
Property taxes possess unique features in Bangkok. Land and Building Tax Act 2019 modernizes tax rates.
The Act introduces three main categories: residential, agricultural, and commercial. Specific rates apply to unused land.
Unused land rates encourage development.
Property taxes share commonalities with capital gains taxes, yet function distinctly. Capital gains taxes apply to profits from selling property.
Property taxes apply irrespective of sale. Both types aim to generate revenue, but target different aspects of property ownership.
For further information on terms related to property taxes and real estate investments in Bangkok, please consult our glossary about Bangkok real estate.