Category Archives: Uncategorized

Thai Government Passes New Land and Building Tax Act

Recently, the National Legislative Assembly passed the Land and Building Tax Act.

The new law will replace both the House and Land Tax and the Local Development Tax when it takes effect on January 1, 2020.

The bill alters land and building tax laws in Thailand by placing property into four distinct legal categories: agricultural, residential, commercial, and vacant.

Each property type has its own tax rates based on the appraisal value.

For agricultural use, there are five tax rates:

  1. 0.01% for land valued between 1 million and 75 million baht;
  2. 0.03% for land valued between 76 million and 100 million baht;
  3. 0.05% for land valued between 101 million and 500 million baht;
  4. 0.07% for land valued between 501 million and 1 billion baht; and
  5. 0.1% for land valued at more than 1 billion baht.

Agricultural land worth less than 50 billion is exempt from taxes if it is owned by a sole individual.

For residential use, there are four tax brackets:

  1. 0.02% for land valued between 1 million and 50 million baht;
  2. 0.03% for land valued between 51 million and 75 million baht;
  3. 0.05% for land valued between 76 million and 100 million baht; and
  4. 0.1% for land valued more than 100 million baht.

For first-time home-owners, a tax-exemption of up to 50 million baht is available.

For commercial use, there are five tax rates:

  1. 0.3% for land valued between 1 million and 50 million baht;
  2. 0.4% for land valued between 51 million and 200 million baht;
  3. 0.5% for land valued between 201 million and 1 billion baht;
  4. 0.6% for land valued between 1 billion and 5 billion baht; and
  5. 0.7% for land valued at more than 5 billion baht.

For vacant or unused property, there are five tax applicable rates:

  1. 0.3% for land valued between 1 million and 50 million baht;
  2. 0.4% for land valued between 51 million and 200 million baht;
  3. 0.5% for land valued between 201 million and 1 billion baht;
  4. 0.6% for land valued between 1 billion and 5 billion baht; and
  5. 0.7% for land valued at more than 5 billion baht.

The tax rate on vacant lands and buildings will increase by 0.3% each year but will not exceed 3%.

DBD Reduces Fee Requirement for Registering a Private Limited Company in Thailand

When registering a private limited company in Thailand, the Thai government requires two specific fees to be paid to the Department of Business Development.

Recently, these fees have been lowered.

Prior to this new fee amendment, fees for registering a private limited company were subject to a maximum of 25,000 baht upon filing the Memorandum of Association (MOA) and a further 250,000 baht upon finalizing the registration.

These fees, based on capitalization, could place a significant financial burden on companies.

Registration fees have now been reduced to a flat rate of 500 baht at the time of filing a MOA and another 5,000 baht when finalizing the registration.

So, in total, government fees for registering a new private limited company in Thailand have been reduced from 275,000 baht to 5,500 baht. 

The fee amendment demonstrates the efforts of the Thai government and the DBD on promoting business development in the Kingdom.

Consumer Protection Board Issues New Rules for Residential leases

The Thailand Consumer Protection Board’s “Committee on Contract” has issued a notification making certain residential leases a whole lot more advantageous to lessees. 

Pursuant to the announcement, certain residential leases will be treated as “controlled contracts” under the Consumer Protection Act and will be subject to the following regulations:

  1. Rent cannot be collected more than one month in advance.
  2. Security deposits cannot be more than one month’s rent.
  3. Surcharges on electricity or water supply are not allowed (only actual charges by the utility providers are allowed).
  4. Forced evacuation or the removal of a defaulted tenant’s property from the leased area is prohibited.
  5. Renewal fees cannot be charged.

The above restrictions do not apply to all residential lease agreements, but only to those that meet the following conditions:

  1. the lessor (whether an individual or a legal entity) leases five or more residential units (in a house, apartment, condominium, etc) whether in the same building or otherwise;
  2. the building is not a licensed dormitory or hotel; and
  3. the tenant is an individual.

The notification was published in the Government Gazette on February 16th and is scheduled to take effect on May 1, 2018.

The notification does not include a grandfathering provision, so all residential leases that meet the conditions specified above will be subject to the new restrictions.

Violators are subject to a fine of up to 100,000 baht and/or a prison sentence of up to one year, pursuant to Section 57 of the Consumer Protection Act.

Thailand Revises Narcotics Law to Allow the Sale of Medical Marijuana

Image: TechPhotoGal

Khao Sod reports on Thailand’s government changes on the narcotics law that will allow the sale of marijuana with a doctor’s prescription to be sold over the counter. The revision of the drug law follows the Justice Minister’s declaration last year of the failure on “the war on drugs”. Thailand now follows other developed nations on the decriminalization and implementation of more common sense regulations.

The policy is currently awaiting approval from the Cabinet, where once passed will be voted on by Junta-appointed Parliament for the final say. The Narcotics Board Control Director has inputted that from interviews with various health and law agencies that there is little opposition and predicts the same responses from law makers.

Watch ThaiLawForum’s interview with dermatologist Dr. Somyot Kittimunkong for more information on medical marijuana in Thailand:

The law, however, will not include the cultivation of the plant at home or recreational use. Doctors in Thailand still fear that the legalization of marijuana for recreational use may fall into the hands of children, damaging their developing brains. The director mentions, that although the law won’t extend that far, he didn’t rule out a future possibility based on debates.

A Thailand divorce agreement is a contract entered into by divorcing couples who can agree on important issues such as assets, child support and alimony.

Read the full story here

Related Blog:
Georgia Senate Approves Expansion of Marijuana Law

Vietnam Communist Government Embarks on Anti-Corruption Campaign in Hopes to Clean Up Energy and Banking Sectors

On Monday, 22 executives were put on trial in Hanoi for losses of the state oil firm, PetroVietnam. The losses incurred, total to about $150 million. Among the executives was a Politburo member, who Germany claimed was kidnapped out of a park in Berlin against his will. The executives may face up to 20 years or the death penalty, based on the seriousness of their crimes.

The anti-corruption scheme is suspected to be politically driven and targeted towards those who are close to former PM Nguyen Tan Dung. The crackdown is focused on those responsible for fraud an economic mismanagement in the energy and banking industries. Of the accused, eight are suspected of embezzlement and 12 are suspected of violating state regulations on economic management.

Another executive on trial for the losses of PetroVietnam is Dinh La Thang who has been arrested and removed from his position as party head of Ho Chi Minh City. In terms of the crackdown in the banking industry, about 46 people have gone on trial in relation to Vietnam’s construction bank.

Thailand prenuptial agreement attorneys can assist with protecting properties and finances for spouses and avoiding future marital spouses prenuptial contracts. 

Read the full story here

Related Article:
Organic Act on Counter Corruption

Related Blog:
Museum of Corruption Soon to Open 

Thailand Anti-Corruption in Phuket

Image:
Communist Party of Vietnam