Penalties for land tax and building tax.

Over the past few years, most of us are likely familiar with the "land and building tax." Those who own only one house and one plot of land may not need to worry about it. However, anyone owning more than two properties is legally responsible for paying this tax. Failure to pay this tax is considered an offense and is punishable by law. The penalties for non-payment of land and building tax are categorized as follows:

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1. Fines

This is the initial penalty for those who fail to pay the full amount due within the specified timeframe. The fines are as follows:

A 40% penalty on the outstanding tax amount for late payment beyond the deadline specified in the notification.

A 20% penalty on the outstanding tax amount for late payment within the timeframe specified in the notification.

A 10% penalty on the outstanding tax amount for late payment before receiving the notification.

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2. Surcharge Interest

In case of late payment of taxes, the law provides an additional penalty: a surcharge of 1% per month on the outstanding tax amount, calculated from the day after the due date until the day the tax is paid. However, there is a ceiling on the interest rate to prevent it from exceeding the amount of tax owed.

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3. Criminal Penalties

If it is discovered that you have attempted to provide false information or create false evidence to evade land and building taxes, you may face imprisonment for up to 2 years or a fine of up to 40,000 baht. This criminal penalty is the highest level of punishment for failing to fulfill your duty to pay land and building taxes.

Paying land and building taxes is a legal obligation. If you own land and property meeting the specified criteria, you must pay in full by the announced deadline. The only cases where you will avoid a penalty are not receiving a tax assessment notice or if the payment deadline is extended. For land tax in 2022, the payment deadline has been extended to July 31, 2022. Those wishing to pay in three installments can also extend the deadline for the final installment to September. All those liable for land and building tax can pay their taxes at the local administrative organization office in the area where their home or land is located.

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Thank you for the valuable information from REIC.