Do U Have To Pay Capital Gains Tax On Your Profit When You Sell A Home Here?

[TonySoprano]

if so, what rates? thx.

[Boater]

yes

and the rate is 30%

[pkrv]

yes

and the rate is 30%

Even if it is your own home/primary residence?

Edited April 29, 2009 by pkrv

[loverboy44]

If you tell them, yes!

[TonySoprano]

they don't check up on it? seems like it would be crazy easy for them to do so and a ton of lost revenue otherwise. i mean, why bother auditing a small business if you can just go through the deed transactions and compare them to tax declarations. 30% on X million baht would add up fast i think.

Edited April 30, 2009 by TonySoprano

[teacup]

I think I read it somewhere that

If you owned it less than 5 yrs, then 15% will be imposed on the gain

[pkrv]

There is some information here but I do not really understand it.

http://www.thaivisa.com/349.0c.html

Q: Is there a specific capital gains tax in Thailand?

A: There is no specific capital gains tax in Thailand. Capital gains are subject to tax in the same manner as any other forms of income.

[ballbreaker]

if so, what rates? thx.

I think they just call it income but yes you will have to pay. It will be collected when the change in property ownership is done at land office.

Don't remember which of the legal firms that advertise on this website I downloaded from but it should provide a clue as to amount you will owe.

If the Seller is a natural person, you have to look at the income in the schedule of the progressive rate under the Revenue Code of Thailand :-

not more than 100,000 0%

more than 100,000 - 500,000 10%

more than 500,000 - 1,000,000 20%

more than 1,000,000 - 4,000,000 30%

more than 4,000,000 37%

The method of calculation is like this....

You need to first calculate the amount of tax to be paid under the progressive rate, the gross amount of income will be first deducted by deductible allowance with the percentage according to a number of years the owner owns the land.

1 year 92%

2 years 84%

3 years 77%

4 years 71%

5 years 65%

6 years 60%

7 years 55%

8 years 50%

For example, if you sell the land you own for three years for the price of 4,000,000 baht, you may first deduct the allowance of 71% for the rate of 4 years being 2,840,000 baht. The sales price of 4,000,000 baht deducted by 2,840,000 baht is 1,160,000 baht.

The deducted amount of 1,160,000 baht will be divided by 4 years which has the result of 290,000 Baht.

290,000 baht will be used as the base to calculate the progressive tax rate being :-

0% for the amount not more than 100,000 baht being 0,000 baht

10% for the amount of 190,000 baht being 19,000 baht

The result is 19,000 baht.

The amount of 19,000 baht must be multiplied once again by the number of years the seller owns the land. In this case it was 4 years

The amount of tax to be paid is 76,000 baht.

Edited May 1, 2009 by ballbreaker

[chiangmaibruce]

Don't remember which of the legal firms that advertise on this website I downloaded from but it should provide a clue as to amount you will owe.

I went looking for your source and found this ... might be it (?)

http://www.siam-legal.com/realestate/prope...-calculator.php

[TonySoprano]

so your actual profit does not come into play, only the sales price + number of years owned? you will still have to pay taxes if you sell for less than you bought it for?... Or was the 4m baht number in your example the profit, not the sales price?

thx

if so, what rates? thx.

I think they just call it income but yes you will have to pay. It will be collected when the change in property ownership is done at land office.

Don't remember which of the legal firms that advertise on this website I downloaded from but it should provide a clue as to amount you will owe.

If the Seller is a natural person, you have to look at the income in the schedule of the progressive rate under the Revenue Code of Thailand :-

not more than 100,000 0%

more than 100,000 - 500,000 10%

more than 500,000 - 1,000,000 20%

more than 1,000,000 - 4,000,000 30%

more than 4,000,000 37%

The method of calculation is like this....

You need to first calculate the amount of tax to be paid under the progressive rate, the gross amount of income will be first deducted by deductible allowance with the percentage according to a number of years the owner owns the land.

1 year 92%

2 years 84%

3 years 77%

4 years 71%

5 years 65%

6 years 60%

7 years 55%

8 years 50%

For example, if you sell the land you own for three years for the price of 4,000,000 baht, you may first deduct the allowance of 71% for the rate of 4 years being 2,840,000 baht. The sales price of 4,000,000 baht deducted by 2,840,000 baht is 1,160,000 baht.

The deducted amount of 1,160,000 baht will be divided by 4 years which has the result of 290,000 Baht.

290,000 baht will be used as the base to calculate the progressive tax rate being :-

0% for the amount not more than 100,000 baht being 0,000 baht

10% for the amount of 190,000 baht being 19,000 baht

The result is 19,000 baht.

The amount of 19,000 baht must be multiplied once again by the number of years the seller owns the land. In this case it was 4 years

The amount of tax to be paid is 76,000 baht.

[ballbreaker]

so your actual profit does not come into play, only the sales price + number of years owned? you will still have to pay taxes if you sell for less than you bought it for?... Or was the 4m baht number in your example the profit, not the sales price?

thx

Wish I could answer your questions but the info I posted was downloaded several months ago from a legal or real estate site and saved on my hard drive.

[ballbreaker]

Here is the link for info I posted about property registration that was downloaded from Sunbelt.

http://www.sunbeltlegaladvisors.com/Thaila...egistration.php

[tangoll]

Here are a few technical points:

1. In the example used above, the 4m is not actually the sales price, but the transaction price reported to the Land Dept. The Land Dept can accept that figure as the figure to use for the calculation of the various taxes and fees that will assessed on that transfer. The actual sales price, cost, and profit don't necessarily come into the calculation. The Land Dept can also dispute your transaction figure and use its own figure, being the figure assessed by it for valuation purposes. Using your actual sales price as the transfer figure is your most defensible position.

2. The number of years owned is also misleading. The Land Dept computes the number of years used in the calculation as the number of calendar years spanning the current transfer from the previous transfer. So for example, if the previous transfer date when you purchased was 31 Dec 2008, and your new sale and transfer date is 01 Jan 2009, the number of years used in the calculation for the transfer on 01 Jan 2009 is two (2) years, even though your period of ownership is only 2 days. This is an extreme example, but most people, including lawyers and those in the real estate business, do not explain this point correctly, or do not understand this point themselves. If the number of years used in the calculation is greater than five, then different rates apply.

My comments above are for transactions involving condo units. I do not know if transactions for land are similar or different. Also, if the seller of a condo is a Thai national and has used the unit as his primary residence, then I believe different rules apply, and I have no experience with that.

Under current rates, the total tax and fees that will assessed on a transaction amount for a one year calculation will be about 4% of the transaction figure, two years 5%, and three thru five years 6%, and six years 4%. It matters not that you actually incurred a loss on the purchase and sale of the condo unit.

Note that I am not a lawyer, and you should consult whoever you feel necessary to confirm my comments.

[tangoll]

Actual case: Condo unit transferred in Sept 2010

Prior transfer date: August 2008, thus 3 years used in tax calculation

Transaction Value: 4.1 mil baht

Total Tax/Fees paid to Land Office: 287,000 baht, or 7% of transaction value.