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12/19/2016
The Thai Law - Albatros Properties
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12/19/2016
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Thailand Property Taxes

Thailand Property Taxes - Albatros Properties

Transfer fee: 2% of the registered value of the property.  

Stamp Duty: 0.5% of registered value. Only payable if exempt from business tax.

Withholding tax: 1% of the appraised value or registered sale value of the property (whichever is higher and if the seller is a company). If the seller is an individual, withholding tax is calculated at a progressive rate based on the appraisal value of the property.

Business tax: 3.3% of the appraised value or registered sale value of the property (whichever is higher). This applies to both individuals and companies.


TAX WHICH PARTY
NORMALLY PAYS?
AMOUNT
Transfer fee Buyer 2% of registered value
Stamp Duty Seller 0.5% of registered value
Withholding Tax Seller 1% of appraised value or registered
sale value (whichever is higher)
Business Tax Seller 3.3% of appraised value or registered
sale value (whichever is higher)

Property Transfer Taxes

Example of How to Calculate Taxes and Costs:

  • Suppose that the government assessed price is 50,000 Baht per square meter.
  • Total area is 100 square meters.
  • The total assessed price is 5,000,000 Baht.
  • Actual selling price is 6,000,000 Baht.
  • The Seller possessed this property for 3 year.

Withholding Taxes

The government assessed price= 5,000,000 Baht
Deduction with the expense of possession for 3 years for 77% = 3,850,000

Balance = 1,150,000 (5,000,000 – 3,850,000)
Divided by the 3 year of possession.
Balance = 383,333.33 (1,150,000/3)
Taxation on progression rate.
1 to 80,000 = exempt
80,001 – 100,000 = 5% (1,000)
100,001 383,333.33 = 10% (28,333.23)
Total = 29,333.23 (1,000 + 28,333.23)
Multiply by the year of possession = 87,999.69 (29,333.23 x 3)

In this case withholding tax is 87,999.69 Baht (A)

Government Fee for Transfer

2% is based on the government assessed price so 5,000,000 x 2% Balance = 100,000

Transfer fee is 100,000 Baht (B)

Stamp Duty

In this case is exempt. This is because transaction is subject to the specific Business Tax (possession of less than 5 year before sale). 

Specific Business Tax

3.3% for Specific Business Tax based on the government assessed price or sale whichever is higher. In this case sale price is higher than government so 6,000,000 x 3.3% = 198,000.

Specific business tax is 198,000 Baht (C)

TOTAL EXPENSES ARE: 385,999.69 BAHT (A+B+C)