mikebell Posted July 24, 2021 Share Posted July 24, 2021 Asking for a friend. He has a house for sale using the company name (scam). Even though this is a buyers' market he has put the house up for sale at 7 million. He's aware he'll have to pay an agent 3% but wants to know how much tax he will have to pay on the sale. Can this be shared 50/50 with the buyer? Link to comment Share on other sites More sharing options...
Peterw42 Posted July 24, 2021 Share Posted July 24, 2021 Transfer Fee is often split 50/50, usually negotiated as part of the sale price 1 Link to comment Share on other sites More sharing options...
DrPhibes Posted July 24, 2021 Share Posted July 24, 2021 28 minutes ago, Peterw42 said: Transfer Fee is often split 50/50, usually negotiated as part of the sale price I thought there was a rather complicated formula that involved how long you owned the property as part of this or is that for sale of land only? Link to comment Share on other sites More sharing options...
BE88 Posted July 24, 2021 Share Posted July 24, 2021 The tax is very elastic depends on who buys and sells. 1 Link to comment Share on other sites More sharing options...
Peterw42 Posted July 24, 2021 Share Posted July 24, 2021 (edited) 31 minutes ago, DrPhibes said: I thought there was a rather complicated formula that involved how long you owned the property as part of this or is that for sale of land only? That is the business tax component, not payable if its owner occupied, or after 5 years ownership. But "ALWAYS payable if company owned. Edited July 24, 2021 by Peterw42 2 Link to comment Share on other sites More sharing options...
Airalee Posted July 24, 2021 Share Posted July 24, 2021 1 hour ago, Peterw42 said: Transfer Fee is often split 50/50, usually negotiated as part of the sale price Can you explain the withholding tax in more detail? Is it based on “profit” only or if I buy a condo for 6m and sell it for 6m then there is no tax? I have seen this tax listed before but never explained. Link to comment Share on other sites More sharing options...
Peterw42 Posted July 24, 2021 Share Posted July 24, 2021 42 minutes ago, Airalee said: Can you explain the withholding tax in more detail? Is it based on “profit” only or if I buy a condo for 6m and sell it for 6m then there is no tax? I have seen this tax listed before but never explained. Its only relevant if earning money/paying tax in thailand, you pay tax at your current tax rate. Not paid by your average expat selling a property. 1 Link to comment Share on other sites More sharing options...
sanuk711 Posted July 24, 2021 Share Posted July 24, 2021 (edited) You can not go to low-but most condo owners don't declare the full selling price......so a friend told me ......... Edited July 24, 2021 by sanuk711 Link to comment Share on other sites More sharing options...
Popular Post Peterw42 Posted July 25, 2021 Popular Post Share Posted July 25, 2021 12 hours ago, sanuk711 said: You can not go to low-but most condo owners don't declare the full selling price......so a friend told me ......... The land office decides what a property is worth (fees/taxes on that amount), they have an appraised value irrespective of sale/declared price. 3 Link to comment Share on other sites More sharing options...
Denim Posted July 25, 2021 Share Posted July 25, 2021 5 minutes ago, Peterw42 said: The land office decides what a property is worth (fees/taxes on that amount), they have an appraised value irrespective of sale/declared price. Nonetheless, although the land office is aware of the approximate value of the property most sellers declare the sale price as lower than the actual sale price so as to pay a lower tax rate. Obviously, you can't declare wildly lower but a substantial saving can be made. However, the seller will have to share this saving three or even 4 ways depending on whether the buyer is using money from a bank loan. When we sold our properties in Bangkok it was the bank rep and the land office employee who worked the fiddle and the 20,000 tax saving was then split 4 ways. A regular and nice little earner for the government employee and bank rep. Link to comment Share on other sites More sharing options...
sanuk711 Posted July 25, 2021 Share Posted July 25, 2021 2 hours ago, Peterw42 said: The land office decides what a property is worth (fees/taxes on that amount), they have an appraised value irrespective of sale/declared price. If they done that Peterw42...you would be paying a hell of a lot less them what they want. Appraisal of houses Condos are always way behind the market. Especially when the market is hot. My house appraisal at the moment is about is about 60% of the going market price--- even Banks on selling don't sell foreclosures on government appraisal price.... I22 years here 2 Condos sold 1 house sold 2 brought, I have never seen anyone sell on the Governments appraisal, here or in Oz--UK The governments price for your home is always below market pricing. 1 Link to comment Share on other sites More sharing options...
Peterw42 Posted July 25, 2021 Share Posted July 25, 2021 45 minutes ago, sanuk711 said: If they done that Peterw42...you would be paying a hell of a lot less them what they want. Appraisal of houses Condos are always way behind the market. Especially when the market is hot. My house appraisal at the moment is about is about 60% of the going market price--- even Banks on selling don't sell foreclosures on government appraisal price.... I22 years here 2 Condos sold 1 house sold 2 brought, I have never seen anyone sell on the Governments appraisal, here or in Oz--UK The governments price for your home is always below market pricing. I'm talking about the minimum amount that the land office calculates the fees and taxes due, their appraised value. Nothing to do with sales prices. Of course nobody sells for the appraised value, and banks dont use the appraised value, but anyone would be silly to declare a higher than appraised value sale, and pay more tax. The land office has an appraised value so that people cant declare a lesser sale value. As I said, they decide what a property is worth (only for the purpose of taxes/fees). Yes, its usually around 60% of sales value 1 Link to comment Share on other sites More sharing options...
Peterphuket Posted July 25, 2021 Share Posted July 25, 2021 3 hours ago, Peterw42 said: The land office decides what a property is worth (fees/taxes on that amount), they have an appraised value irrespective of sale/declared price. Also depending of your color....is my experience! Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now