Tax on sold company house.

[jvs]

I have a question about the amount (%)of tax to be paid on the profit when you sell a property(land and house)

in a company.

I have heard very different amounts and would like to know just to be able to draw future plans.

Any information from some one who knows is welcome.

 

[StarJedi]

Article found on Internet : 

 

Property Transfer Taxes

Thailand Property

Example Of How To Calculate Taxes And Costs:

§  Suppose that the government assessed price is 50,000 Baht per square meter

§  All areas are 100 square meter

§  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)

[FracturedRabbit]

The above applies if the company is selling a house that it owns. But if you wish to sell a house that is owned by a company (and that is all the company is used for), then there is just a transfer of shareholders from you and the other directors to the directors nominated by the buyer. There are some small transfer fees involved, but no tax on the sale because the house is not actually being sold; just a change of shareholders in the company.

[Delight]

 This may help

 

http://www.acuterealty.com/calculator.asp

[Delight]

On 01/03/2018 at 5:09 PM, Delight said:

 This may help

 

http://www.acuterealty.com/calculator.asp

 Just inputted the data as per Star Jedi example -I get a different result using the calculator

 

Specific Business Tax  198000  -same  as Star Jedi

 

Transfer fee -100,000 -same as Star Jedi

 

Withholding tax is 87,999.69 Baht   as per Star Jedi.       85000  Baht as per calculator.

 

Only 3000 Baht difference

 

Suggest use calculator as a guide

 

 

 

 

Edited March 4, 2018 by Delight
Added more text

[THAIJAMES]

Many are reluctant to buy a property via transfer of shares.

 

I think what the OP is saying is that when selling a property owned by a company to an individual person,  after paying the transfer fee, would the tax department come after him for any appreciation of the companies assets (the property) if the company is then terminated.

[jvs]

2 hours ago, THAIJAMES said:

Many are reluctant to buy a property via transfer of shares.

 

I think what the OP is saying is that when selling a property owned by a company to an individual person,  after paying the transfer fee, would the tax department come after him for any appreciation of the companies assets (the property) if the company is then terminated.

Yes that i would like to know also.