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Property Taxation

 

Every person residing in Thailand, regardless of his/her nationality, shall be responsible to pay taxes and fees when buying or selling property. These taxes and fees are as follows:

1. Transferring Fee

The Transferring fee is 2% of the registered value of the property. Whether the buyer or the seller is paying for this fee is dependent on the Sale and Purchase Agreement. Normally the buyer partly pays for this fee. This fee is paid to the officer at the land office upon the day of the transfer of ownership.

2. Stamp Duty

The buyer or seller is subject to a 0.5% duty stamp from either the appraised value of the property or actual purchasing price, whichever is higher. The parties reliable for this additional 0.5% duty can be agreed in the Sale and Purchase Agreement. Stamp duty is to be imposed unless the Specific Business Tax (SBT) is paid.

3. Specific Business Tax (SBT)

SBT will only be imposed if you are selling a property which has been owned for a period less than five years. The tax rate is 3.3% of the selling or assessed price of an asset (whichever is higher).

4. Withholding Tax

Individuals selling property: the withholding tax is determined under the Revenue Code of Thailand. The seller shall withhold such tax and pay to the Revenue Department when he/she earns an income from the sale of immovable property (including condominium unit). Withholding tax rates are calculated based on the government assessed price with a deduction of possession year, varied depending on the year of your possession (the more years of possession, the more the deduction) and calculate the amount based on the income from the progressive tax rate (ranging from 0-37%).

Company selling property: the withholding tax of 1% of the appraised value of property or actual selling price, whichever is higher, and must be paid by the seller.

However, there are no property taxes as such in Thailand that are exactly equivalent to the property taxes in the West. Commercial property incurs a small tax which is collected infrequently.

In term of registering a lease agreement; a registration of a lease for duration of more than 3 years requires a registration fee rate of 1% plus a 0.1% rate of stamp duty. Rates are calculated from the total amount of the rental fee or the key money, or both.

THAILAND PROPERTY TAXES

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

In case the company owns the property, 1% of the appraised value of the property.
In case of an individaul, dependent on how long the property has been owned (see above).

Business tax

3.3% of the appraised value of the property if selling within 5 years. 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 register value

Withholding Tax

Seller

1% of appraised value

Business Tax

Seller

3.3% of appraised value

Tax and Cost Calculation for Transferring Property

Example of how to calculate the taxes and cost:

Santipura Condominium sale

- Suppose that the government assessed price is Baht 18,500 per Sq.m.

- All areas are 262 Sq.m.

- The total assessed price is Baht 4,847,000

- Actual selling price is 10,900,000

- The seller possessed this property for 3 years