Translation For Taxes Payable

[amsterdammer]

Greetings fellow board members.

Although I have been a viewer of these pages for a long time now, this is my first posting. I have always previously found answers to my queries within the pages of the forum, but now I have an important matter that perhaps others have experience of.

I together with my Thai GF will be taking the plunge soon and purchasing a house and the land it sits on. I’ll be spending in the region of 2.4 million baht. Through this forum, and my local advisors I have a pretty good feel for the process and what to expect.

My query revolves around the taxes payable during this transaction. I understand that I’ll be liable for

1) Transfer fee of 2% of Bt2.4m or Bt48,000

2) Stamp duty of 0.5% of Bt2.4m or Bt12,000

3) Withholding tax at the variable progressive rate, calculated as follows:

Deduction with the expense of possession for 4 years = 71% 1,704,000.00

Balance = (2,400,000 - 1,704,000) 696,000.00

Divided By years of Possession (4) 174,000.00

Taxation on progression rate (100,001 - 500,000 Baht = 10%) 17,400.00

Multiply by the year of possession (4) 69,600.00

Therefore (48,000 + 12,000 + 69,600 = 129,600.00) baht.

Of course all these calculations could change according to the values made by the local land department appraisable prices.

My query really revolves around just how this tax bill will be presented to me. Will I just see the total taxes payable, or will it be broken down as per Transfer Fees, Stamp Duty, and Withholding Tax? Or even be broken down and details as above.

I have not been able to find translations (Thai script) or romanised English) for these three different types of tax, and so I am a little worried I will not be able to understand or effectively communicate the 3 different taxes involved.

Of course I will too be looking to divide up this tax liability between myself and the vendor, so effective communications of the individual taxes involved is needed. Tax is as an emotive issue (particularly in today’s political climate) , and I want to ensure that correct dues are paid.

All input is valued. Thanks in advance.

[Irene]

Greetings fellow board members.

Although I have been a viewer of these pages for a long time now, this is my first posting. I have always previously found answers to my queries within the pages of the forum, but now I have an important matter that perhaps others have experience of.

I together with my Thai GF will be taking the plunge soon and purchasing a house and the land it sits on. I'll be spending in the region of 2.4 million baht. Through this forum, and my local advisors I have a pretty good feel for the process and what to expect.

My query revolves around the taxes payable during this transaction. I understand that I'll be liable for

1) Transfer fee of 2% of Bt2.4m or Bt48,000

2) Stamp duty of 0.5% of Bt2.4m or Bt12,000

3) Withholding tax at the variable progressive rate, calculated as follows:

Deduction with the expense of possession for 4 years = 71% 1,704,000.00

Balance = (2,400,000 - 1,704,000) 696,000.00

Divided By years of Possession (4) 174,000.00

Taxation on progression rate (100,001 - 500,000 Baht = 10%) 17,400.00

Multiply by the year of possession (4) 69,600.00

Therefore (48,000 + 12,000 + 69,600 = 129,600.00) baht.

Of course all these calculations could change according to the values made by the local land department appraisable prices.

My query really revolves around just how this tax bill will be presented to me. Will I just see the total taxes payable, or will it be broken down as per Transfer Fees, Stamp Duty, and Withholding Tax? Or even be broken down and details as above.

I have not been able to find translations (Thai script) or romanised English) for these three different types of tax, and so I am a little worried I will not be able to understand or effectively communicate the 3 different taxes involved.

Of course I will too be looking to divide up this tax liability between myself and the vendor, so effective communications of the individual taxes involved is needed. Tax is as an emotive issue (particularly in today's political climate) , and I want to ensure that correct dues are paid.

All input is valued. Thanks in advance.

The Land Department will collect these three taxes and duty upon transferring of titleship. There will be receipts clearly shown with each tax involved. Unfortunately, they will be all in Thai.

[amsterdammer]

Just as I imagined. I will have to try and workout the breakdowns from the amounts that requested.I'll be bringing my calculator with the enlarged "percent" key

Although I could not find exact translations for "Transfer Fee", "Stamp Duty", and "Withholding Tax", I did however find the below related translations with a little extra research. They may be useful for others treading the path. No doubt I'll get the real Thai words after my visit to the Land Department, after which maybe I can provide an update.

Tax ภาษี phaa see

Account งบ ngohp

Real estate tax ภาษีที่ดิน phaa see thee din

Business tax ภาษีการค้า phaa see gaan khaa

Income tax ภาษีเงินได้ phaa see ngern dai

Inheritance, estate tax ภาษีมรดก phaaM see maaw raH dohk

Pay tax เสียภาษี siia phaa see

Government Tax Office กรมสรรพากร grohm san phaa gaawn

Tax receipt ปี้ bpee

Duty (tax) อากร aa gaawn

Accounting การบัญชี gaan ban chee

[soap]

i would go and ask at the nearest land office to the house you are going to buy.

tell them were the house is and ask them to break it down what tax you are expected to pay

[nitram]

As you mentioned that the property was previously owned for 4 years, then you will pay 2% Stamp Duty and 3.3% Business Tax (if owned for less than 5 years) plus Withholding Tax. But you would be paying this on what the Land's Department valued the house and land (less tax that way).

My only inquiry on this matter.... if you and your g/f are buying is it in your g/f name only?

or is it in your g/f name and you are leasing it off her for 30 years?

if this is the case then you will be paying another 1% leasing fee on the rental paid over 30 years for registering the lease, and then your g/f should be receiving a visit from the taxation agents regarding the 12.5% income on rental.

Edited June 28, 2007 by nitram

[amsterdammer]

Thanks for the additional info Nitram.

The plan is for the house and land to be entirely in my girlfriends name, and hope to remian in her good books

The aniversary of the 5 years for previous owners occupations is just 4 months away so I will be checking with the Land Office for potential benefits in delaying the transaction as the tax liability will change.

[Ploughboy]

Greetings fellow board members.

Although I have been a viewer of these pages for a long time now, this is my first posting. I have always previously found answers to my queries within the pages of the forum, but now I have an important matter that perhaps others have experience of.

I together with my Thai GF will be taking the plunge soon and purchasing a house and the land it sits on. I'll be spending in the region of 2.4 million baht. Through this forum, and my local advisors I have a pretty good feel for the process and what to expect.

My query revolves around the taxes payable during this transaction. I understand that I'll be liable for

1) Transfer fee of 2% of Bt2.4m or Bt48,000

2) Stamp duty of 0.5% of Bt2.4m or Bt12,000

3) Withholding tax at the variable progressive rate, calculated as follows:

Deduction with the expense of possession for 4 years = 71% 1,704,000.00

Balance = (2,400,000 - 1,704,000) 696,000.00

Divided By years of Possession (4) 174,000.00

Taxation on progression rate (100,001 - 500,000 Baht = 10%) 17,400.00

Multiply by the year of possession (4) 69,600.00

Therefore (48,000 + 12,000 + 69,600 = 129,600.00) baht.

Of course all these calculations could change according to the values made by the local land department appraisable prices.

My query really revolves around just how this tax bill will be presented to me. Will I just see the total taxes payable, or will it be broken down as per Transfer Fees, Stamp Duty, and Withholding Tax? Or even be broken down and details as above.

I have not been able to find translations (Thai script) or romanised English) for these three different types of tax, and so I am a little worried I will not be able to understand or effectively communicate the 3 different taxes involved.

Of course I will too be looking to divide up this tax liability between myself and the vendor, so effective communications of the individual taxes involved is needed. Tax is as an emotive issue (particularly in today's political climate) , and I want to ensure that correct dues are paid.

All input is valued. Thanks in advance.

Is the witholding tax based on profit realized or the or the full value of the property? Payable by seller or buyer?

Edited June 28, 2007 by Ploughboy

[amsterdammer]

Ploughboy, I believed that withholding tax was based upon the full value of the property (either the price actually payed, or the price as per the land office valuation (whichever is higher)). Of course I'll stand corrected if I misunderstood

[nitram]

If you buy a property worth 5 million Baht and the Lands Department value it at 3 Million Baht. Would you tell the Lands Department that you paid 5 Million or would you say that you paid 3 Million Baht. It stands to reason that you would quote the lesser price so that you pay less tax. it is usual to pay the buyer with 2 cheques, one would be for 3 Million Baht ( Valuation price) and another cheque for 2 million Baht for "furniture".

Withholding Tax is never on Capital Gains.. you pay taxes here every time on the valuation or the sale price (whatever that is "quoted" as the higher) each time it is sold. And withholding tax follows a very complex formula based on a deduction depending on length of years owned and then converted to a tax payable formula.

And as for "Who pays what tax".... they are negotiable. But in most occassions, the buyer is better off NOT accepting 50/50 split.

Edited June 30, 2007 by nitram

[percy2]

This should be pinned!

Its just taken an age to find it again.

Cheers