Tax Exemptions on Land and Buildings The Case Studies of Property with Privileges and Immunities

Abstract

In many countries, privileges and immunities are granted to the United Nations, international organizations, embassies, consulates, and foreign economic and trade offices, exempting them from almost all categories of taxation. To comply with international principles established under the Convention on the Privileges and Immunities of the United Nations (1946), the Convention on the Privileges and Immunities of the Specialized Agencies of the United Nations (1947), the Vienna Convention on Diplomatic Relations (1961) as well as the Vienna Convention on Consular Relations (1963), Thailand has, therefore, enacted the following statutes: the Diplomatic Privileges and Immunities Act, B.E. 2527 (1984); the Consular Privileges and Immunities Act, B.E. 2541 (1998); and the Privileges and Immunities for International Organizations and International Conferences in Thailand Act, B.E. 2561 (2018). However, with the recent enactment of the Land and Building Tax Act, B.E. 2562 (2019), exemptions from land and building tax have been granted for properties used as offices of the United Nations, its specialized agencies or other international organizations, offices of foreign embassies or consulates, as well as other properties that are established by Ministerial Regulations. Furthermore, under the ministerial regulation paragraph 11, it also grants tax exemptions to properties used as offices of foreign economic and trade offices established in Thailand pursuant to agreements between the Thai government and foreign governments. Based on the aforementioned enactment, it appears that these provisions grant exemptions and confer benefits upon property owners who are not entitled to privileges under the applicable conventions or legislation, all of which do not comply with international principles and ultimately lead to the problem of injustice.