Sale land and house tax question

[Destiny1990]

Good afternoon,

since i see different calculations on the internet here my question : what taxes are there if a thai person sells a land with a house to a foreigner.

btw that seller the thai person has that house already in their name for 15 years.

what taxes are there and which one for the seller and which one for the buyer?

[userabcd]

Thai land cannot be owned by a foreigner not of Thai nationality.

 

https://property.cbre.co.th/guides/thailand-land-property-tax

 

Taxes on Selling Properties in Thailand

Many individuals who have invested in property in Thailand are often very unaware of the tax liabilities that may arise on selling the property.

Typically, foreigners have invested in property either through buying a condominium unit which they hold in their own name or having taken out a lease on a landed property.

As our analysis shows below, an individual or other legal structure will always be subject to taxation on the sale of the property. The general tax rates (excluding company or individual personal tax which may also apply eventually) are shown below. Perhaps surprisingly, for an individual selling a property, the taxation system is actually very complex.

 

[Destiny1990]

31 minutes ago, userabcd said:

Thai land cannot be owned by a foreigner not of Thai nationality.

 

https://property.cbre.co.th/guides/thailand-land-property-tax

 

Taxes on Selling Properties in Thailand

Many individuals who have invested in property in Thailand are often very unaware of the tax liabilities that may arise on selling the property.

Typically, foreigners have invested in property either through buying a condominium unit which they hold in their own name or having taken out a lease on a landed property.

As our analysis shows below, an individual or other legal structure will always be subject to taxation on the sale of the property. The general tax rates (excluding company or individual personal tax which may also apply eventually) are shown below. Perhaps surprisingly, for an individual selling a property, the taxation system is actually very complex.

 

Right probably these foreigners make the land +  house company owned.

anyway about that 3,3% business tax that’s for the seller even if the seller owned that property for over 10 years right? Its still 3,3%?

then that withholding tax why it says 1% or 5-35%?
 

[userabcd]

3 hours ago, Destiny1990 said:

Right probably these foreigners make the land +  house company owned.

anyway about that 3,3% business tax that’s for the seller even if the seller owned that property for over 10 years right? Its still 3,3%?

then that withholding tax why it says 1% or 5-35%?
 

Specific Business Tax

 

Stamp duty is exempt if Specific Business Tax is charged on the property transfer. The total is 3.3% of the value of the property and this is constituted as a 3% business tax as well as a municipal tax of 10% which has been assessed on the total of the specific business tax 0.3% which is a total of 3.3% specific business tax.

 

If the seller of the property you are buying from has been the owner of the property for more than five (5) years. This before the transfer would not be liable to pay this tax. This is on condition that the seller has had the property as his principal place of residency and that the seller of the property can show and prove that the name of the seller was on the house registry as least one year from the date of having bought the property.

 

Withholding Tax

 

This is calculated on tax marginal rates

 

The withholding tax is essentially calculated using selling price as gross income then deducting expense from Schedule B (shown in table below) to get net income. One then divides net income with years in possession to get yearly net income. One can use net income per year to calculate tax income per year from Schedule A. The final step is to multiply tax income per year with years that the property has been in possession to calculate total Withholding tax.

Withholding tax is calculated by using selling price as income then deduct expense from Schedule B to get net income then divide net income with years in possession to get yearly net income. Use net income per year to calculate tax income per year from Schedule A. Final step is multiply tax income per year with years in possession to get Withholding tax.

Let’s take an example of a property that was sold for 10 million Baht and owned for two years. The table below shows the step-by-step calculation process:

 

So,

 

Theoretically if the property was owned for 15 years and the seller shows that they are they are registered on owner registration docs for more than one year the taxes applicable would be

1) Transfer fees (shared between buyer and seller)

2) Stamp Duty (since there would be no SBT)

3) Withholding tax calculated according to marginal rates and deducting expenses

 

Edited March 7, 2023 by userabcd