Withholding Sellers Tax

[LuckyLucas]

Hello All

 

I'm buying a house in my Thai wife's name from a foreign-owned company. 

How does the seller/company demonstrate that they are not withholding tax? (see below)

Do they need to get the equivalent of the 91 tax certificate - the land office (in Sattahip) seemed uninterested in this as a requirement

 

Kind Regards LL

[Peterw42]

Why are you worried about the sellers tax liability ? Its not anything to do with you. So long as they are not trying to get you to pay it.

If you were buying the actual company then its relevant, otherwise, they may owe millions in tax or nothing in tax, its between them and the land/tax office. 

The land office has a formula to work out the amount of tax (years owned, nominal tax rate etc). The sale is treated as income and taxed accordingly, its not a matter of proving tax is not being withheld, its a tax bill collected by the land office.

If the company has a liability to be paid at the land office, and they dont pay it, the sale wont go through.

 

Edited February 11, 2022 by Peterw42

[LuckyLucas]

Many thanks for the astute reply. The owner's company's tax will be taken care of at the end of the tax year, right?