Taxes.

[Chopper]

Would someone advise if these are the only taxes applicable when buying selling land.

1. Transfer Fee 2% appraised value of land by Land Office. (negotiable ~ normally 50/50)

2. Stamp Duty 0.5%. (paid by the buyer)

3. Withholding Tax. (paid by the seller)

Does anyone have the Thai translation for the above taxes?

Also do I have the correct %'s applicable and I am correct in thinking that the Transfer Fee is normally split between buyer and seller. Also #2 paid by the buyer and #3 paid by the seller.

Lastly if I have a copy of the Chenod will the Land Office tell me what the current owner paid for the land.

Thanks.

[Irene]

My comments and corrections are in bold type:

Would someone advise if these are the only taxes applicable when buying selling land.

1. Transfer Fee 2% appraised value of land by Land Office or the actual sale value whichever is greater. (negotiable ~ normally 50/50)

2. Stamp Duty 0.5%. (paid by the buyer, negotiable and normally 50/50)

3. Withholding Tax. (paid by the seller)-(one should make sure with the seller that it is his liability and should be borne by him otherwise they could be argument at the land transfer office to regard this tax as 50/50 as well).

4. Specific Business Tax 3.3% (It is the seller's liability but should be specifically stated before concluding the deal. It is payable if the seller is a corporation or if the individual has been holding the property for less than 5 years. If this tax is payable, then stamp duty would be exempted.)

Does anyone have the Thai translation for the above taxes? (The relevant sections are spread over the Thai Tax Code).

Also do I have the correct %'s applicable and I am correct in thinking that the Transfer Fee is normally split between buyer and seller (not necessary, it depends on your negotiable power). Also #2 paid by the buyer (under the law, it is supposed to be borne by the seller but in practice it could be negotiated) and #3 paid by the seller (Yes, definitely, but in practice, some sellers like to pull a fast one and maintain at the last minute at the land department that it should be shared half half as well. So to be on the safe side, one should agree in writing prior to concluding the deal at the land department the extent on the types of taxes and duties that the buyer has to bear, other than that it is the seller's account).

Lastly if I have a copy of the Chenod will the Land Office tell me what the current owner paid for the land.You can make a search at the Land Department for an official sale contract or see the rates of taxes then paid. I am not sure whether the figures are revealed readily on the file. Anyhow, the figures are not that reliable and it tends to be understated to save the taxes and duties on both sides.

Thanks.

[Chopper]

Thanks very much Irene. The above is a great help.