tangoll

The new form is called Foreign Exchange Transaction Form, and can be issued by the receiving bank for amounts greater than equivalent of US$20,000. This FETF will show the equivalent baht when converting the foreign currency remitted in, and when transferring your condo unit at the Land Dept office, you must have FETF's of baht equivalent greater than the transaction amount declared to the Land Dept office for the condo.

Wonderboy is correct on how to handle your situation. Ask your developer what amount he intends to declare on the transfer transaction form and go from there. Depending on the size and condition of the condo unit being transferred to you, and what you intend to do with it, you may need extra funds for furnishings, additional fitting out, etc. So even if your final payment to developer is 1 mil baht, you may need to remit in more than that to do the furnishings. You should also ask your bank what documents they need if and when you wish to export funds you had remitted in previously. You may need to show sales transaction forms, tax receipts, etc.

How did you pay the developer the installment payments of 500,000 baht? You may be able to get FETF's to cover those payments.

Are you referring to the transfer tax/fees calculated by the Land Dept at time of transfer? If so, then capital gains does not figure into the calculation. The only thing that matters is the transaction value used by the LD for their calculation.

If you are referring to profit tax imposed on a company's annual tax return, then you had better consult with your tax accountant as to whether capital gains on sale of land must be reported, and if so, must you use the transaction values of the two transfers of the land as the basis of computing the capital gains, or can you demonstrate that the capital gains is computed using values other than the transaction values of the transfers at the LD?

As I understand the OP's post, first buyer is holding the S+P contract with the developer for this condo still under construction. This first buyer has not transferred the condo unit into the first buyer's name yet (as he's only paid a deposit to the developer, per the post). Basically the first buyer is not selling the condo unit to the friend; he's only assigning the developer's contract to the friend's name, and in this resale, probably having to pay the developing a "name change fee" to assign the S+P contract into the friend's name. Two months later, the friend will then have the condo unit transferred by the developer into the friend's name.

In the first transaction, there are no transfer fees involved; there probably will be a name change fee paid to the developer, and of course, some monies to be paid by the friend to the first buyer for taking over the contract.

In the second transaction, this will be the actual transfer from the developer to the name on the S+P Contract, by then the friend's name, and the transfer fees/tax will be paid according to what's on the S+P contract.

Straightforward and simple. I don't know what the rule regarding joint Thai/farang ownership of a condo unit and how that would be calculated as to the foreign quota for a project. Best to check with the developer and whoever will be the juristic person managing the project.

If cost of travel is a real issue, you can take the 22 hour train ride from Hua Lamphong station in BKK to Penang. 1,200 baht for a sleeper. I don't know about visa issues in Penang consulate though, or time required to get a visa there.

I'm only guessing but I would imagine if you go to Bangkok Chinatown and find a store that sells mahjong sets, there would be chips available there as well.

I don't understand why, if a farang has a work permit, he/she needs to show foreign exchange transaction form for a condo purchase. With a work permit, he/she is eligible to obtain a local thai baht bank mortgage (whether one is granted depends on bank policies, etc.), and if he is granted a mortgage, he does not need a FETF to cover the mortgage amount when he does the transfer at the Land Dept office. Am I missing something here?

samlLO: when you say " Personal Income tax to be advised by the Land Dept. " surely someone must know how the Land Dept does this calculation. Can you give us the formula used by the Land Dept?

Hello, I sent you a private message. Or you can email me at <pcmar at netvigator dot com> if you don't receive that PM or wish to discuss further.

tangoll

Always good to hear stories of honesty in Bangkok. I once left my wallet at Musashi Restaurant in MBK. Got home, realized wallet gone, called CC companies to cancel card, etc., then decided to backtrack in hope to try to find the wallet. Got back to Musashi and young lady cashier had the wallet for me. Said she did check inside the wallet, and saw my Bumrungrad Hospital card, and called the hospital to have them forward a message to me. Sure enough, just then a call came from Bumrungrad telling me that my wallet has been found and being held at restaurant. Later I wrote letters to Tourist Authority of Thailand and to MBK management office telling them of this good deed, but received no response or acknowledgment from either.

Restaurant is now no longer there.

Of course, I've also had reverse when my bag was stolen at Emporium, but nothing of real value in the bag. Emporium staff were helpful in taking details and driving me in their van to Thonglor police station so I could get a formal police report of loss to submit to insurance companies for claim.

If buyer is non-Thai, he/she will have to supply Land Dept with Foreign Exchange Transaction Forms to show sufficient funds for purchase had been imported into Thailand. Whether funds actually used for transaction is immaterial, but the importation has to have been made in order to have receiving bank issue the forms.

I don't have the figures for exactly eight years, but if six years on a transaction value of 4 mil baht, your total tax and fees would come to about 3% of the transaction value, and I suspect that eight years would be not too different. Since your number of years is greater than five, the reduced Specific Business Tax rate of 0.11% will not do you any good, since the Stamp Duty of 0.5% kicks in after five years.

I would also be careful about using the Land Dept's assessed figure of 4 mil baht if your actual purchase price is much greater. The Land Dept can challenge you on this point and cause you to reveal the actual purchase price thereby resulting in a larger tax/fees assessment. Be sure that the actual number of years is eight for use in the calculation. That figure is not exactly the number of years of ownership; the exact calculation is:

(calendar year of this transfer less calendar year of prior transfer plus one).

Good luck on your purchase.

As a general rule, I would say if you ever wish to sell the unit in the future, any structural modification to the unit will work against you when viewed by a prospective buyer. It's best if you keep the original design and have the original brochure or flat layout to go along with showing the flat. Cosmetic changes or changes which can be easily converted back to original, should be OK; structural changes, better check with juristic office and get their consent in writing.

Apparently no video surveillance cameras in the vicinity. I thought at first the question by pumpuiman referred to my including a video camera in my list of items in the stolen bag. Came back to HK and filed my claim with thru insurance broker and I trust value would be covered in full, since I have two policiies that would apply in this case -- travel insurance and general household effects policy which also covers personal items lost outside of home. I thought my Bangkok condo policy would also provide coverage but that policy only covers lost items stolen thru forcible entry into the condo unit itself.

I'm sure Pojaman's lost bag contained a lot more valuable items than my bag which had old underpants, tennis shorts and shirts, etc.

This is just my calculation on a sale of a condo unit for 3.8 million, and assuming

1. you declare a transaction value of 3.8 million

2. the Land Office applies the reduced rates to Specific Business Tax and Transfer Fee

3. the number of calendar years between the prior transfer and this current transfer is between 1 - 5 years

then the total taxes and fees that would be assessed on this transaction value would be about 1% for 1 year, 2% for 3 years, and 3% for 5 years.

I do not know if the calculations for land property is the same as for condo units, or what happens with stamp duty assessed on over 5 years, or what happens if the property has been used as primary residence (tabien baan) for the seller for over 1 year. In the case of primary residence of at least one year, the Specific Business Tax of 3.3% would not apply and the stamp duty tax of 0.5% would have been applied, but since the reduced SBT is now less than the stamp duty rate, I don't know which rate would apply in the case of the primary residence.

This is only my understanding of how the tax and fee rates would be applied.

Last Sunday before the heavy rains came, I was planning to play tennis in the afternoon, so packed my bag of tennis gear -- old balls, shirts, shorts, underpants, wristband, headband, elbow band, and special eyeglasses. While having lunch at Burger King at Emporium, and reading newspaper, some a*hole lifted the bag which was on chair across the small table from me. I didn't notice until I was done eating and was about to leave; the bag was gone. Nothing of value -- no cash, cards, or passport -- in the bag and I do have insurance to cover the loss.

But it's irritating that someone would do this, especially I have to replace the special eyeglasses. The Customer Service staff at Emporium very helpful; took me in their van to Thonglor police station so I could file a report.

My Thai friend said that many people out of job, money, and so resort to this kind of thievery. So be warned, watch your bag and stuff at all times, and keep it attached to your body. They can be so quick.

Any ideas to exact revenge?

And now over to quiksilva for his official notification and posting here about the reductions.

Nothing works better than the old rat trap with the U shaped snap and the trigger that holds a bit of cheese or other edible. One snap, one kill. Be sure to get a large enough trap for the size rats in your ceiling. If big rats, tie the trap to something secure so that a wounded rat can't run off with the trap.

Don't know if these traps are available in Thailand though. Difficult to find even in US now; I bought a good sized one in Switzerland, but haven't had to use it in my Bangkok or HK condo unit yet; but I'm ready for any rat invasion. May seem inhumane to some, but the trap does the job, and you have evidence of the "body" to show that the job was done.

quiksilva, you did post the notification, but do you know what the notification actually says? It's all in Thai, and what does the "it's" in your post refer to? Anyway, the info from the Land Dept office is that the transfer tax of 0.01% has been extended for another year from 29 Mar 2009 to 28 Mar 2010. But, the Specific Business Tax was not extended and has reverted to the pre-reduction rate of 3.3%. I got this info from my real estate agent who checked with the Land Dept office on 29 March 2009, and I have not heard any update since. I hope I'm wrong and that the Spec Bus Tax reduction has also been extended. Perhaps you heard or know different.

The reduced revenue tax (also called Specific Business Tax) of 0.11% of transaction value terminated on 28 March 2009 (after being in effect for one year), and the revenue tax reverted to its normal value of 3.3% from that date for condo units whose years of calculation is 5 years or less. Note that this years of calculation is not same as years of ownership; it is the number of years spanning the calendar from the prior transfer to the current transfer.

All in, your total tax and fees for transfers for condo units will be 4% up to 6% of transaction value going from 1 to 5 years, and then dropping back to 4% for 6 years.

The transaction value is the value you declare to the Land Dept office for the transfer. It's not necessarily the sales price. If the seller is a Thai national, and the property had been the primary residence, there are other deductions, but I do not know about this.

I do not know about calculations for land property transactions.

I've lived in a condo that was 150 metres from Ratchethewi BTS and now live in a condo about 600 metres from Prom Phong BTS. Assuming that you would mostly use the BTS for travel around BKK, and don't have a car and don't rely much on taxis or motosai taxis, the difference is this: being close to BTS, you don't mind so much going out and returning home, then going out again when close to BTS. Far removed from BTS, you have to plan your day so that you mainly go out and return home only once a day. And, if at the end of the day, knowing that you face a 10 - 15 minute walk from BTS to home, is a depressing thought, because a taxi ride seems wasteful for such a short distance, a motosai ride seems more dangerous if late at night, and a walk in hot, stuffy BKK at night is just not fun, especially when the soi may not have sidewalks, and if it does have sidewalks, there are many ups and downs crossing the sub-sois or entryways, telephone poles and booths, signs, broken pavement tiles are all over, or the sidewalk is dirty, etc.

Noble Remix on Sukhumvit Soi 36 is supposed to have direct walkway to BTS Thonglor station. Completion and transfer is scheduled for 4Q 2009. If interested to takeover a unit, 60 sqm, 1 bed / 1 bath, reply here or send message (PM)

Here are a few technical points:

1. In the example used above, the 4m is not actually the sales price, but the transaction price reported to the Land Dept. The Land Dept can accept that figure as the figure to use for the calculation of the various taxes and fees that will assessed on that transfer. The actual sales price, cost, and profit don't necessarily come into the calculation. The Land Dept can also dispute your transaction figure and use its own figure, being the figure assessed by it for valuation purposes. Using your actual sales price as the transfer figure is your most defensible position.

2. The number of years owned is also misleading. The Land Dept computes the number of years used in the calculation as the number of calendar years spanning the current transfer from the previous transfer. So for example, if the previous transfer date when you purchased was 31 Dec 2008, and your new sale and transfer date is 01 Jan 2009, the number of years used in the calculation for the transfer on 01 Jan 2009 is two (2) years, even though your period of ownership is only 2 days. This is an extreme example, but most people, including lawyers and those in the real estate business, do not explain this point correctly, or do not understand this point themselves. If the number of years used in the calculation is greater than five, then different rates apply.

My comments above are for transactions involving condo units. I do not know if transactions for land are similar or different. Also, if the seller of a condo is a Thai national and has used the unit as his primary residence, then I believe different rules apply, and I have no experience with that.

Under current rates, the total tax and fees that will assessed on a transaction amount for a one year calculation will be about 4% of the transaction figure, two years 5%, and three thru five years 6%, and six years 4%. It matters not that you actually incurred a loss on the purchase and sale of the condo unit.

Note that I am not a lawyer, and you should consult whoever you feel necessary to confirm my comments.

Thanks for posting this. About two weeks ago, I had made a purchase on internet from US using a CC not from US. One hour after making the purchase, got a call from a guy identifying himself as from the CC company and asking if I had actually made that purchase. This had never happened before on other purchases. I said yes, and that was the end of that. However, after reading the OP post above, got concerned I may have been victim of the scam. So called the CC company and they confirmed that the calling number was from the company and that there have been no other unusual purchases against my card. But good to know, and in future, when receiving any such call, will get a number to call back, and not disclose any card information.

One has to be constantly on guard these days.

Hey a*holemark, where in my post did I say I believe the posted message that I received in my mailbox was true? I was merely checking things out. If you don't believe it, just say you don't believe it, and let each reader form his/her own judgment. So you understand Hindi and speak Thai, well bully for you. By the way, your English sucks.

This just came into my email inbox, and I was wondering if anyone else had heard something similar...

"BEWARE.... Bangkok's Airport Duty Free Shops.- You may get jailed for shopping there..

Spread news to your family members, friends, relatives to be careful at Bangkok Airport (presumably, Suwanna)

fraudulant arrests are being made, due to duty free shops staff purposely put some

extra stuff in your purchased stuff, then police arrests,and they share such money with

each other for their own needs,or greed, but you may suffer humilation, arrests and

money losses,

INDIANS' ASSOCIATION OF TAIPEI

An Indian was detained in Bangkok for stealing a pack of cigarette in a

duty-free shop in Bangkok International Airport..

He had paid for chocolates and a carton of cigarettes. The cashier put a

packet of cigarette into his bag and he thought it was a free pack. He was

arrested for shop-lifting and the Thai Police extortion price was 30,000

Baht for his release.

He spent two nights in jail and paid 500 Baht for an air-cond cell, 200-300

baht for each visitor, and 11,000 baht for his final release. The Police

shared the money in front of his eyes. On top of that, he was charged in

court and fined 2,000 baht by the magistrate and handcuffed and escorted to

his plane. His passport was stamped "Thief". While there, his relatives

requested help from the Indian Embassy and was told that they are helpless,

many Asians are victimised similarly daily and letters and phone- calls to

the Thai Authorities are ignored.

He shared a cell with a Singaporean the 1st night who paid 60,000 baht for

his release. The 2nd night was an Malaysian national who paid 70,000 baht

Mind you this was not in a shanty shop in downtown Bangkok but in a duty

free shop in Bangkok Int'l Airport.

BE WARNED.

PS: Above is 100% correct information- because Mr.Rajan Khera's customer

from India faced exactly the same scenerio mentioned above when he was

intransit at Bangkok Int'l Airport."

If the above is true, that would be a new low for the Thai authorities to allow

such a practice to occur. That's why I never buy anything from airport shops and

my carryon bag is with me 100% of the time and closed tightly.