Change House ownership from Company to Thai Ownership

[UWEB]

Does somebody know how much it will cost to transfer a Company owned House into a Thai Ownership and closing down the Company? I get so many different answers from Wife, Real Estate Agent and Tax Agency in a range from 30.000 THB to 600.000 THB, so I'm absolute confused what I have to pay finally for such a change.

[couchpotato]

Does somebody know how much it will cost to transfer a Company owned House into a Thai Ownership and closing down the Company? I get so many different answers from Wife, Real Estate Agent and Tax Agency in a range from 30.000 THB to 600.000 THB, so I'm absolute confused what I have to pay finally for such a change.

 

Before anyone can answer we need the Land office appraised value of the property. then I can give you some estimates. Without that it is a senseless question.

[Khabib]

24 minutes ago, couchpotato said:

Does somebody know how much it will cost to transfer a Company owned House into a Thai Ownership and closing down the Company? I get so many different answers from Wife, Real Estate Agent and Tax Agency in a range from 30.000 THB to 600.000 THB, so I'm absolute confused what I have to pay finally for such a change.

 

Before anyone can answer we need the Land office appraised value of the property. then I can give you some estimates. Without that it is a senseless question.

The transfer from the company to the person will depend on that, I think its unlikely to be very much. The closing of the company will likely be more expensive, circa 100k

[Peterw42]

The transfer side of things is around 5.5 % of the land office appraised value. 2% normal transfer, .5 % stamp duty and 3% special business tax (a company as the seller must pay this).

The company side cost could vary depending on lawyer fees. taxation, audit, other company activities etc

Edited November 19, 2021 by Peterw42

[UWEB]

3 hours ago, couchpotato said:

Does somebody know how much it will cost to transfer a Company owned House into a Thai Ownership and closing down the Company? I get so many different answers from Wife, Real Estate Agent and Tax Agency in a range from 30.000 THB to 600.000 THB, so I'm absolute confused what I have to pay finally for such a change.

 

Before anyone can answer we need the Land office appraised value of the property. then I can give you some estimates. Without that it is a senseless question.

The Land Office appraised Value is 2.500.000 THB

[couchpotato]

1 hour ago, UWEB said:

The Land Office appraised Value is 2.500.000 THB

By my calculation, for a Company owned property, the total tax owed at transfer would be about 157,000 baht.

 

The company windup could be quite costly (as someone mentioned above). You should plan on at least 60,000 baht (plus the process can take 2-3 months).

Hope this helps.

[UWEB]

22 minutes ago, couchpotato said:

By my calculation, for a Company owned property, the total tax owed at transfer would be about 157,000 baht.

 

The company windup could be quite costly (as someone mentioned above). You should plan on at least 60,000 baht (plus the process can take 2-3 months).

Hope this helps.

Thanks for help, to pay at least 220K THB for such a Transfer will cross out this option.

[ed strong]

Probably all of it.

[crazykopite]

Depends on the land office appraisal value just to close down a company is expensive you would be better to sell it as long as it has no debts . Going back a few years a farang with a Thai wife wanted to buy one of my properties but not the company as the house would be put in his name the charges I would have incurred due to the appraisal were unacceptable so I declined his offer and 6 months later completed the sale  to include the company 

Edited November 20, 2021 by crazykopite

[Brick Top]

If the land office appraisal value is 2.5 Million then the land office fees will be around 150,000. To close the Thai company will be the most expensive part , going on my experience between 300,000 and 500,000.

[couchpotato]

3 minutes ago, Brick Top said:

If the land office appraisal value is 2.5 Million then the land office fees will be around 150,000. To close the Thai company will be the most expensive part , going on my experience between 300,000 and 500,000.

Sorry don't where you got your experience, but your quoted amount is way over the top, and misleading.

As I said a few posts ago the fee is at least 60k and a more depending on who you get to wind up the company. My costs in April this year was 64,000 baht, using my accounting office.

It takes a while (2-3 months) as the procedure is quite complicated.

 

Your estimate of 150k transfer is about right.

[Brick Top]

1 hour ago, couchpotato said:

Sorry don't where you got your experience, but your quoted amount is way over the top, and misleading.

As I said a few posts ago the fee is at least 60k and a more depending on who you get to wind up the company. My costs in April this year was 64,000 baht, using my accounting office.

It takes a while (2-3 months) as the procedure is quite complicated.

 

Your estimate of 150k transfer is about right.

 

[Brick Top]

I got my experience through living here 21 years and buying over 50 properties for refurbishing and selling . 

Several of the property's were condominiums held with existing Thai companies that my buyers did not require . Those Thai company's therefore had to be closed down properly not by me but by my accountant. The most expensive one cost 480,000 to close , others cost around 300,000 , it totally depends on how long the company has owned the property , the original cost of the property and the sale price.

I trust this answers your question on were I got my experience from .

[LukKrueng]

I would think these questions should be asked BEFORE establishing a company for the sole purpose of owning a property. Once you have the estimates you should then look at it as part of the costs of owning the property and decide if that's the best way to do it. 

[bolt]

We changed COMPANY owned house to Thai ownership

We closed company after, I think it was something like 6% of value which was 4.5m it was 270,000 + transfer 50k

This was 2017

[couchpotato]

@boltWe closed company after, I think it was something like 6% of value which was 4.5m it was 270,000 + transfer 50k.

 

@Brick TopThose Thai company's therefore had to be closed down properly not by me but by my accountant. The most expensive one cost 480,000 to close , others cost around 300,000 , it totally depends on how long the company has owned the property , the original cost of the property and the sale price.

 

You are both tying the Company closure to a property purchase or sale. This is completely wrong.

When a property owned by a Company is transferred to an individual or sold, the applicable tax is paid to the land office at that time. (see my post above). After that the company is just that, a Company with a capitalisation, that if required to be closed has certain procedures to follow (by law), which usually takes 2-3 months (usually a lawyer or accountant would do this for you). 

Closing the Company is completely separate from any sale or transfer that the Company may have previously owned.

[couchpotato]

3 hours ago, Brick Top said:

I got my experience through living here 21 years and buying over 50 properties for refurbishing and selling . 

Several of the property's were condominiums held with existing Thai companies that my buyers did not require . Those Thai company's therefore had to be closed down properly not by me but by my accountant. The most expensive one cost 480,000 to close , others cost around 300,000 , it totally depends on how long the company has owned the property , the original cost of the property and the sale price.

I trust this answers your question on were I got my experience from .

My experience is 43 years (with Thai Govt and private) and a few more purchases and sales than yourself, so both our experience is long term, but I have never paid more than 100k to close a company legally and correctly, and most have been in the 60-80k range, depending on the costs of the media etc.

So to be charged 300-500k to close companies is more than exorbitant. If it was me, I'd have a word with the accountant. 

Also please see my post above on the actual closing of a Company.

Hope this helps.

[bolt]

41 minutes ago, couchpotato said:

@boltWe closed company after, I think it was something like 6% of value which was 4.5m it was 270,000 + transfer 50k.

 

@Brick TopThose Thai company's therefore had to be closed down properly not by me but by my accountant. The most expensive one cost 480,000 to close , others cost around 300,000 , it totally depends on how long the company has owned the property , the original cost of the property and the sale price.

 

You are both tying the Company closure to a property purchase or sale. This is completely wrong.

When a property owned by a Company is transferred to an individual or sold, the applicable tax is paid to the land office at that time. (see my post above). After that the company is just that, a Company with a capitalisation, that if required to be closed has certain procedures to follow (by law), which usually takes 2-3 months (usually a lawyer or accountant would do this for you). 

Closing the Company is completely separate from any sale or transfer that the Company may have previously owned.

You’re right selling a house is completely NON related. However, my experience was all in one, job done they took their cut and that was that.

 

Whether it was right or wrong I did not say, i told the OP what I paid 

[Gulfsailor]

The discrepancy between experiences is easily explained. To close a company is not very expensive, however a final balance will have to be made and corporate tax paid before it can be closed. If a property has been in a company name for a long time, has since appreciated in value while being depreciated in the yearly accounts, then this can result in a large profit upon sale, resulting in a large corporate tax bill.

 

example; property purchased 10 years ago for 3 million, book value today after writing off 5% per annum (to reduce yearly taxes any accountant will depreciate assets by as much as allowed) is 1.5 million. Now sold and valued at 5 million. Corporate profit is 3.5 million (disregard other expenses and deductibles). That’s 15% x 3M + 20% x 0.5M = 550,000 Baht tax bill. 

[Brick Top]

5 hours ago, couchpotato said:

@boltWe closed company after, I think it was something like 6% of value which was 4.5m it was 270,000 + transfer 50k.

 

@Brick TopThose Thai company's therefore had to be closed down properly not by me but by my accountant. The most expensive one cost 480,000 to close , others cost around 300,000 , it totally depends on how long the company has owned the property , the original cost of the property and the sale price.

 

You are both tying the Company closure to a property purchase or sale. This is completely wrong.

When a property owned by a Company is transferred to an individual or sold, the applicable tax is paid to the land office at that time. (see my post above). After that the company is just that, a Company with a capitalisation, that if required to be closed has certain procedures to follow (by law), which usually takes 2-3 months (usually a lawyer or accountant would do this for you). 

Closing the Company is completely separate from any sale or transfer that the Company may have previously owned.

Absolutely incorrect , in all my cases the companies were closed some time after the sales went through and the figures I quoted were not including any land office transfer fees as you incorrectly assumed.

I actually looked back and one company owned 8 properties , all the 8 properties I sold to a Thai buyer who agreed to pay all the land office fees in the contract. About 14 months after the sale the company was closed and the total cost to close that perticular company amounted to just over 740,000 baht that was back in 2013.

I find you seem hell bent on trying to prove people wrong looking at your comments on previous posts.

[Brick Top]

3 hours ago, Gulfsailor said:

The discrepancy between experiences is easily explained. To close a company is not very expensive, however a final balance will have to be made and corporate tax paid before it can be closed. If a property has been in a company name for a long time, has since appreciated in value while being depreciated in the yearly accounts, then this can result in a large profit upon sale, resulting in a large corporate tax bill.

 

example; property purchased 10 years ago for 3 million, book value today after writing off 5% per annum (to reduce yearly taxes any accountant will depreciate assets by as much as allowed) is 1.5 million. Now sold and valued at 5 million. Corporate profit is 3.5 million (disregard other expenses and deductibles). That’s 15% x 3M + 20% x 0.5M = 550,000 Baht tax bill. 

Exactly correct 

[bojo]

4 hours ago, Gulfsailor said:

The discrepancy between experiences is easily explained. To close a company is not very expensive, however a final balance will have to be made and corporate tax paid before it can be closed. If a property has been in a company name for a long time, has since appreciated in value while being depreciated in the yearly accounts, then this can result in a large profit upon sale, resulting in a large corporate tax bill.

 

example; property purchased 10 years ago for 3 million, book value today after writing off 5% per annum (to reduce yearly taxes any accountant will depreciate assets by as much as allowed) is 1.5 million. Now sold and valued at 5 million. Corporate profit is 3.5 million (disregard other expenses and deductibles). That’s 15% x 3M + 20% x 0.5M = 550,000 Baht tax bill. 

I'm no corporate tax expert by any means, but if you buy somethng for 3M and then after the 1.5 depreciation that you mention and selling/valued at 5M, then the profit is 0.5 Million which is the difference between purchase and current, therefore leaving 0.5 profit................................would you not pay tax on the 0.5 only (less any deductables)..??