Hi

I was wondering if anyone could help me?I am thinking of selling my condo in Bangkok that I have owned for 6 years and was wondering after paying the change of ownership fees which is about 2.5 % I believe do I have to pay any other tax or fees on top of this?

regrds Ercorn

There are usually 3 tax rates that have to be paid. Because you have owned the condo for over 5 years, then you are right in saying that you have Transfer Fees of 2.5% but there is an additional fee of withholding tax. This is based on a depreciation scale of 60% discount on the estimated value, divided by the number of years owned and then using the tax scale to pay income tax.

An example: If your property is sold at 5 million Baht, but the Lands Dept value it as 3 Million Baht. Tell them you sold it for 3 Million Baht (if they ask, otherwise you will pay the higher tax amount). So your withholding tax will be 3 Million Baht times 60% discount = 1.8m Baht discount. Tax on 1.2 million Baht divided by 6 = 200, 000 Baht (income per year).

Income tax on 100,000 is 5,000 Baht, Income tax on the enxt 100,000 baht is 10,000 Baht = 15,000 Baht tax PER YEAR...so multiply it by 6 = 90,000 Baht.

Whoever pays these taxes is part of the negotiations with the buyer.

There are usually 3 tax rates that have to be paid. Because you have owned the condo for over 5 years, then you are right in saying that you have Transfer Fees of 2.5% but there is an additional fee of withholding tax. This is based on a depreciation scale of 60% discount on the estimated value, divided by the number of years owned and then using the tax scale to pay income tax.

An example: If your property is sold at 5 million Baht, but the Lands Dept value it as 3 Million Baht. Tell them you sold it for 3 Million Baht (if they ask, otherwise you will pay the higher tax amount). So your withholding tax will be 3 Million Baht times 60% discount = 1.8m Baht discount. Tax on 1.2 million Baht divided by 6 = 200, 000 Baht (income per year).

Income tax on 100,000 is 5,000 Baht, Income tax on the enxt 100,000 baht is 10,000 Baht = 15,000 Baht tax PER YEAR...so multiply it by 6 = 90,000 Baht.

Whoever pays these taxes is part of the negotiations with the buyer.

Interesting information but don't you have to consider how much you paid for the condo? What if you bought the condo 6 years ago for 4 million baht? Don't you start out by subtracting this from the selling price?

Do the same equations apply for land purchases (sorry off topic I know)?