Page 79 - Introduction to Investment Laws in Thailand

of land and property. The provincial committee mainly assesses the land
price in Thailand. The information of land or property price assessed by
the committee will be linked with the national databases under the
treasury department, ministry of finance. Then the land department can
refer to the databases about the land and property prices to give an order
about taxes and fees for any property transaction and registration.

Nevertheless, the land price determined by the government
assessment may not reflect the real market price of the property. In most
cases, people make a property transaction at the real market prices higher
than the government assessment. Thus, a calculation for paying tax or fee
at the department of land to register the land transactions (change of
ownership, mortgage, rent, etc) is based on transactional or government

assessment prices. The land department will rely on the higher price to
calculate taxes and fees for the land transaction.

3.3 Lease of land

A Thai person or foreigner can rent a property, and lease the land and
property according to the Thai Civil and Commercial Code section 53 7 -
547, which are spelt out as:
Section 537. A rent of property is a contract whereby a
person, called the letter, agrees to let another person, called the
rent have the use or benefit of a property for a limited period of
time and the rent agrees to pay rent therefore.

Section 538. A rent of immovable property is not
enforceable by action unless there is some written evidence
signed by the party liable. If the rent is for more than three years
or for the life of the letter or rent, it is enforceable only for three
years unless it is made in writing and registered by the competent
official.
Section 539. Costs of a contract of rent are borne by both
parties equally.

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