Land Transfer Tax

[Big Guy]

I am in the process of purchasing a property in nakorn Sri Tammarat province, with a value of 900000bt. Transfer is to happen next week and was wondering how much the taxes will be.

[donx]

I am in the process of purchasing a property in nakorn Sri Tammarat province, with a value of 900000bt. Transfer is to happen next week and was wondering how much the taxes will be.

I don't know the answer, but there are several variables for you to consider or at least let us know about.

For example, have you agreed to split the fees/taxes with the seller? When my wife bought land there a few years ago the seller agreed to pay all transfer fees and taxes. Addtionally, the tax paid may depend on what the land department says the land is worth. The seller may even ask you to declare a lower sales price. This is what happened to us. Another variable is how long the seller has owned the property.

Others on here may be able to provide more details, but there is also some questions regarding whether the reduced fees that were in affect for the last year have been extended. By the way, the propery my wife bought was also in Tha Sala in Nakon Si Thammarat.

[Big Guy]

I am in the process of purchasing a property in nakorn Sri Tammarat province, with a value of 900000bt. Transfer is to happen next week and was wondering how much the taxes will be.

I don't know the answer, but there are several variables for you to consider or at least let us know about.

For example, have you agreed to split the fees/taxes with the seller? When my wife bought land there a few years ago the seller agreed to pay all transfer fees and taxes. Addtionally, the tax paid may depend on what the land department says the land is worth. The seller may even ask you to declare a lower sales price. This is what happened to us. Another variable is how long the seller has owned the property.

Others on here may be able to provide more details, but there is also some questions regarding whether the reduced fees that were in affect for the last year have been extended. By the way, the propery my wife bought was also in Tha Sala in Nakon Si Thammarat.

This property is in Tha Sala as well, have already agreed that the selling price is to be reduced (or what the land department is told).

Was interested in knowing what the approximate liability will be as i dont know what the rules are this year.

[briley]

AFAIK the seller pays all the taxes, unless you agreed otherwise.

[Big Guy]

Yes, but if agreed otherwise as is often the case, what would be the expected tax on this amount

[briley]

The answer is ask the land tax department.

The amount payable depends,

What value land registry puts on the property (not the price you pay or declare)

Is it commercially owned?

If not how long has it been owned?

Has the gov. extended the reduced rates introduced 12 months ago (I hear both yes and no).

But the tax is between 0.1% and 5.5% of the land registry value

Before agreeing to 'split the costs' get the seller to tell you the tax.

[tangoll]

For transfers of condo units, the situation at the Land Dept office after 28 Mar 2009 is that:

1. Transfer fee stays at the reduced rate of 0.1% of declared value; this is the only rate that has been extended at the reduced level

2. Specific Business Tax reverts to the higher rate of 3.3% of declared value or assessed value as estimated by LD

3. Revenue tax is computed on the formula based on imputed years of ownership, which spans the number of calendar years owned; for example, if property

was purchased in Dec 2008, and sold and transferred again in Jan 2009, that's considered as two years for calculation purposes.

Roughly, for condo units of approx 5 mil baht as declared value, the tax/rates in total for transfers within one year is 4% and 3 years is 6%.

I don't know if calculations for land values are different.

There is also some exemption for Thai nationals who have used the property as their primary residence, but I do not know about that exemption.