Condo Transfare Fees

[ezzra]

Hi,

We are about to purchase a condo that has been owned

by the previous owner for the last 8 years and the land department value

on the property is about 4 millions baht.

We would like to know how to calculate the transfers fees and taxes

payable as we have agreed to pay all the above cost as part of the deal,

A referral to a website with the above calculations will be a great help,

Thanks,

[chiangmaibruce]

We would like to know how to calculate the transfers fees and taxes

payable as we have agreed to pay all the above cost as part of the deal,

A referral to a website with the above calculations will be a great help,

did you try a forum search before posting? see top right this page

http://www.thaivisa.com/forum/search.html&...ransfer+fee+tax

Easy, and it's all there. Happy reading

[tangoll]

I don't have the figures for exactly eight years, but if six years on a transaction value of 4 mil baht, your total tax and fees would come to about 3% of the transaction value, and I suspect that eight years would be not too different. Since your number of years is greater than five, the reduced Specific Business Tax rate of 0.11% will not do you any good, since the Stamp Duty of 0.5% kicks in after five years.

I would also be careful about using the Land Dept's assessed figure of 4 mil baht if your actual purchase price is much greater. The Land Dept can challenge you on this point and cause you to reveal the actual purchase price thereby resulting in a larger tax/fees assessment. Be sure that the actual number of years is eight for use in the calculation. That figure is not exactly the number of years of ownership; the exact calculation is:

(calendar year of this transfer less calendar year of prior transfer plus one).

Good luck on your purchase.

[samILO]

Disbursements for the registration of Condo and Land Ownership transfer

Land/Codo ownership transfer

1 The owner is juristic person.

Reg. fee 0.01% of estimate price (normal 2%)

Company Income tax 1% of selling price

Specific Business Tax 0.11% of selling price (normal 3.3%)

Misc charges 1,000.-

2 The owner is ordinary person

Reg. fee 0.01% of estimate price (normal 2%)

Personal Income tax to be advised by the Land Dept.

Duty stamps 0.5% of selling price

Misc charges 1,000.-

** Registration fee and Specific Business tax are subject to the change of Land Regulations issue.

Note : as per the Land Ministry information, this rate is valid up until March 2010.

[tangoll]

samlLO: when you say " Personal Income tax to be advised by the Land Dept. " surely someone must know how the Land Dept does this calculation. Can you give us the formula used by the Land Dept?

[samILO]

Taxes calculated by Revenue department rules. Best to consult an accountant on this matter. BUT the tax does not apply if you sell your private property and not doing it as a business. Also certain deductions are allowed, again best to consult an accountant on this matter.

Personal income tax is applied on a graduated scale as follows:

Net Annual Income (Baht) Tax Rate

51.000 - 100.000 5%

100.001 - 500.000 10%

500.001 - 1.000.000 20%

1.000.001 - 4.000.000 30%

> 4.000.001 37%

[ezzra]

Thanks to all for their contributions, it has been concluded that i had to pay B. 207,407 for the full transfer

cost based on the property valued at 3.8 millions for a condo that was owned for the last 6 years by the seller,

were the calculations correct? who knows? the more i read about it the more confused i get,,

well, it's paid and done now,

again thanks to all,

[samILO]

Dear Ezzra,

your most welcome. For any and all payment made for payment of taxes and registration fees, stamp duties in order to register the ownership transfer a receipt should be available.

[DrDave]

Taxes calculated by Revenue department rules. Best to consult an accountant on this matter. BUT the tax does not apply if you sell your private property and not doing it as a business. Also certain deductions are allowed, again best to consult an accountant on this matter.

Personal income tax is applied on a graduated scale as follows:

Net Annual Income (Baht) Tax Rate

51.000 - 100.000 5%

100.001 - 500.000 10%

500.001 - 1.000.000 20%

1.000.001 - 4.000.000 30%

> 4.000.001 37%

Hi Sam, I'm a little confused by the statement above in bold. To which tax are you referring? I was under the impression that when an individual sells his personal residence, the seller is responsible for paying personal income tax on the net gain, according to the chart that you provided above. Am I misunderstanding this?

[ivowatson]

Thanks to all for their contributions, it has been concluded that i had to pay B. 207,407 for the full transfer

cost based on the property valued at 3.8 millions for a condo that was owned for the last 6 years by the seller,

were the calculations correct? who knows? the more i read about it the more confused i get,,

well, it's paid and done now,

again thanks to all,

It should be fairly easy to calculate but of course, it's not.

I assume you bought as ordinary person not under company name.

Reg. fee 0.01 % = 380

dut stamp 0.5% = 19.000

Misc. dharges = 1000

So, 187.000 for personal income tax? But Sam says this tax doesn't apply if you sell your private property.

I don't understand.

[samILO]

If anybody selling his private property as there might be your house, your condo, your car etc. (please consulate an accountant on the specific matter) the personal income tax is waived. Again we are no tax specialists and an accountant can clear the matter up, but from our experience on transfers of private property the tax was not collected but such transaction should be referred to in the early tax return.

[hhgz]

"8 years and the land department value

on the property is about 4 millions baht."

If 4M THB exactly, your tax will be 252K THB.