Fees Payable To Land Titles Office On Transfer Of Land

[scorecard]

In process of selling condo in downtown Bangkok. Have owned the unit more than 5 years.

Trying to get a solid answers on what fees are payable when the unit is transfered to new owner. Had lots of conflicting answers from friends, so can any members please give correct answers.

1. What posted administration / processing fees apply at the land titles office?

2. What taxes apply (and is 7% VAT in the picture somewhere)? And on what amount are the taxes calculated: actual sale price, original purchase price, negotiated price?

3. What 'other costs' are likely to come up?

Appreciate your kind advice.

[trajan]

Government Fees & Taxes (currently temporarily reduced until March 28, 2010)

1. Government Transfer Fee of 0.01% of the official government appraised value of the condo unit in question (after March 28, the normal 2% would apply)

2. Specific Business Tax or SBT of 0.11% of the higher of the purchase prices OR the official govt appraised value of the condo unit in question (after March 28, the normal 3.3% would apply)

3. The applicable income withholding tax --deducted from purchase price and paid at the Land Office (as an agent for the Revenue Dept) in seller's name

4. No stamp duty would be levied IF SBT is paid.....(if an individual owner/seller owned the condo for more than 5 yrs or 1 year (in the case of seller being registered in the tabien baan/household registry book for that condo) then SBT would not apply, BUT in that case stamp duty of 0.5% on higher of the purchase price OR the assessed value of the condo would apply.)

5. if applicable, real estate broker commissions (commonly about 3% on sales price) but, in my experience negotiable prior to finding a buyer....

[MJo]

Trajan is right.

In you case 0.01% transfer fee (land office value) + 0.5% Stamp Duty (actual sales price or land office value which ever is higher).

Don't know of your personal situation but Thais pay income tax also when selling land or property.

Easiest way is to visit nearest land office and ask them to calculate based on estimated sales price.

[TVGay]

Government Fees & Taxes (currently temporarily reduced until March 28, 2010)

1. Government Transfer Fee of 0.01% of the official government appraised value of the condo unit in question (after March 28, the normal 2% would apply)

2. Specific Business Tax or SBT of 0.11% of the higher of the purchase prices OR the official govt appraised value of the condo unit in question (after March 28, the normal 3.3% would apply)

3. The applicable income withholding tax --deducted from purchase price and paid at the Land Office (as an agent for the Revenue Dept) in seller's name

4. No stamp duty would be levied IF SBT is paid.....(if an individual owner/seller owned the condo for more than 5 yrs or 1 year (in the case of seller being registered in the tabien baan/household registry book for that condo) then SBT would not apply, BUT in that case stamp duty of 0.5% on higher of the purchase price OR the assessed value of the condo would apply.)

5. if applicable, real estate broker commissions (commonly about 3% on sales price) but, in my experience negotiable prior to finding a buyer....

Dear Trajan, thanks for this information, much appreciated.

I'm a bit lost on your point:

"3. The applicable income withholding tax --deducted from purchase price and paid at the Land Office (as an agent for the Revenue Dept) in seller's name "

Could you please expand on this point, thanks. (Does 'income' in this case mean capital gain?)

Not sure if it's relevant, I have Permanent Resident status and I have a currrent Thai work permit. Does this change anything?

Thanks.

[MJo]

With work permit and being tax registered one could assume you will be taxed the same as Thai's. I don't know how they calculate the income tax but i would assume it is in the end tied to your annual income.

Only way to find out is to check with land office, they will provide the calculations to you in few minutes if you go and ask.

[trajan]

Government Fees & Taxes (currently temporarily reduced until March 28, 2010)

1. Government Transfer Fee of 0.01% of the official government appraised value of the condo unit in question (after March 28, the normal 2% would apply)

2. Specific Business Tax or SBT of 0.11% of the higher of the purchase prices OR the official govt appraised value of the condo unit in question (after March 28, the normal 3.3% would apply)

3. The applicable income withholding tax --deducted from purchase price and paid at the Land Office (as an agent for the Revenue Dept) in seller's name

4. No stamp duty would be levied IF SBT is paid.....(if an individual owner/seller owned the condo for more than 5 yrs or 1 year (in the case of seller being registered in the tabien baan/household registry book for that condo) then SBT would not apply, BUT in that case stamp duty of 0.5% on higher of the purchase price OR the assessed value of the condo would apply.)

5. if applicable, real estate broker commissions (commonly about 3% on sales price) but, in my experience negotiable prior to finding a buyer....

Dear Trajan, thanks for this information, much appreciated.

I'm a bit lost on your point:

"3. The applicable income withholding tax --deducted from purchase price and paid at the Land Office (as an agent for the Revenue Dept) in seller's name "

Could you please expand on this point, thanks. (Does 'income' in this case mean capital gain?)

Not sure if it's relevant, I have Permanent Resident status and I have a currrent Thai work permit. Does this change anything?

Thanks.

the withholding tax applies to every individual seller.... Thai, foriegner or foreigner with work permit and/or PR status...(it applies to selling companies too, but on a different calculation)

the withholding tax is not based on profits/capital gains (as you might logically imagine).....it's based on govt assessed value and the length of time of ownership...in other words, you, as a seller, will have the income tax withheld from you even if you actually sell at a loss.....which struck me as more than ODD, but there you have it...

for example as explained to me at a sale of one of my condos [PLEASE DONT HOLD ME TO THE MATH OR % DETAILS...just trying to illustrate the method for your background understanding]

(a) the period of ownership is two years (a fraction of one year counts as one full year)

(b ) the govt assessed value of the unit is Baht 3 million

(c ) the deduction % applicable to two years ownership period is say 84%

(d) therefore, the aggregate net deemed income (16%) on Baht 3 million is Baht 480,000

(e) divide Baht 480,000 by two (the years of ownership) = Baht 240,000 (income per year)

(f) then apply the progressive individual annual income tax rates on the annualized amount of Baht 240,000

[[5% income tax on the first Baht 100,000 of income=Baht 5,000......10% income tax on Baht 100,001 to 500,000 of income....etc.]]

which I believe results in = Baht 5,000 + Baht 14,000 = Baht 19,000 of annual income tax

(g) multiply Baht 19,000 X number of yrs of ownership (2) = Baht 38,000 (which is the aggregate applicable withholding tax you end up paying to the Revenue Dept at the Land office at sales closing)