Buying House Via Company

[Rob5060]

I recently completed the purchase of a house in Chiang Mai by setting up a company.

I am told that I have to pay :-

1500Bt a year for Tax

1500Bt a month for Bookeeping

9000Bt a year for auditor

ie 28500Bt in total a year

The company is non-trading just used to buy the house

Do you guys in a similar position pay similar charges.

Any views appreciated,, it sounds expensive to me.

Cheers

Bob

[expatinasia]

It's a little on the high side, but not extortion. Look at it this way: rather than paying real estate taxes, and you're only paying $700US/year for the "professional fees".

[Wanderer]

I recently completed the purchase of a house in Chiang Mai by setting up a company.

I am told that I have to pay :-

1500Bt a year for Tax

1500Bt a month for Bookeeping

9000Bt a year for auditor

ie 28500Bt in total a year

The company is non-trading just used to buy the house

Do you guys in a similar position pay similar charges.

Any views appreciated,, it sounds expensive to me.

Cheers

Bob

<{POST_SNAPBACK}>

I was quoted recently it would cost about 15,000 annually to keep the companies books in order, (non-trading)

The same lawyers quote for making a will was also alot cheaper than another lawyer i contacted ,so you maybe you should shop around.

Er ! i just looked at your figures

1500Bt a year for Tax

1500Bt a month for Bookeeping

9000Bt a year for auditor

= 12,000 baht ( not 28,500)

its costs about 20,000 baht ( or in your ca se 28,500)intially set up the company and then 15,000 annually

Edited May 21, 2005 by Wanderer

[Rob5060]

I recently completed the purchase of a house in Chiang Mai by setting up a company.

I am told that I have to pay :-

1500Bt a year for Tax

1500Bt a month for Bookeeping

9000Bt a year for auditor

ie 28500Bt in total a year

The company is non-trading just used to buy the house

Do you guys in a similar position pay similar charges.

Any views appreciated,, it sounds expensive to me.

Cheers

Bob

<{POST_SNAPBACK}>

I was quoted recently it would cost about 15,000 annually to keep the companies books in order, (non-trading)

The same lawyers quote for making a will was also alot cheaper than another lawyer i contacted ,so you maybe you should shop around.

Er ! i just looked at your figures

1500Bt a year for Tax

1500Bt a month for Bookeeping

9000Bt a year for auditor

= 12,000 baht ( not 28,500)

its costs about 20,000 baht ( or in your ca se 28,500)intially set up the company and then 15,000 annually

<{POST_SNAPBACK}>

Thanks for the reply its exactly the kind of information I wanted

However one of the queries was that I am being charged 1500Bt a month! for bookeeping which is why it comes to 28500Bt. I dont know or can't imagine why a monthly return / work would be necessary.

Cheers

Bob

[Sir Burr]

Forming a company just to own a house is not a good idea at present. Lawyers will always advise you to go this route as they earn more from setting up a company than arranging a simple 30 year lease.

There are rumblings from the government that they will be investigating all companies that have the sole purpose of owning a house. You may lose the house at worst, or, have to jump through beauracratic hoops at best.

If you had leased, there would have been a one time payment and then nothing else for the life of the lease.

If I were you, I would start looking into a lease and ditch the company.

[Steve2UK]

Forming a company just to own a house is not a good idea at present. Lawyers will always advise you to go this route as they earn more from setting up a company than arranging a simple 30 year lease.

There are rumblings from the government that they will be investigating all companies that have the sole purpose of owning a house. You may lose the house at worst, or, have to jump through beauracratic hoops at best.

If you had leased, there would have been a one time payment and then nothing else for the life of the lease.

If I were you, I would start looking into a lease and ditch the company.

<{POST_SNAPBACK}>

I hope your company structure gives you no more than 39% of the basic shareholding (with clauses in place to ensure your control)? And, from what I've been seeing in a thread running on the Koh Samui forum, some form of trading activity through the company is worth considering - even if it's only a small amount of "rent" income and tax on that. This is potentially a major issue (fair to say, maybe more so in farang property hotspots like Phuket, Samui etc) - rather more so than just whether you're being charged a lot for running costs.

Edited May 21, 2005 by Steve2UK

[Steve2UK]

Forming a company just to own a house is not a good idea at present. Lawyers will always advise you to go this route as they earn more from setting up a company than arranging a simple 30 year lease.

There are rumblings from the government that they will be investigating all companies that have the sole purpose of owning a house. You may lose the house at worst, or, have to jump through beauracratic hoops at best.

If you had leased, there would have been a one time payment and then nothing else for the life of the lease.

If I were you, I would start looking into a lease and ditch the company.

<{POST_SNAPBACK}>

[edited re-post - I got locked out of editing my previous post]

I'm no expert, but I've been investigating this situation in preparation for doing what Bob has done.

I think ditching the company is kind of extreme and may well be impracticable - how does Bob get to own/lease the land when the company's gone?

That said, I hope Bob's company structure gives him no more than 39% of the basic shareholding (with clauses in place to ensure his control) - thus avoiding automatic inspection of the company set-up? And, from what I've been seeing in a thread running on the Koh Samui sub-forum, some form of trading activity through the company is worth considering - even if it's only a small amount of "rent" income and tax on that. This is potentially a major issue (fair to say, maybe more so in farang property hotspots like Phuket, Samui etc) - compared to whether the company's annual accountancy costs are a bit on the high side or not. Personally, I'd be more concerned to know that I'm as safe as possible (safe as houses?) rather than saving a few thousand baht and not knowing.

BTW, I think the monthly book-keeping may have something to do with a monthly VAT return being submitted? Take a look at:

http://www.lawyer.th.com/accounting.asp

In any case, Bob, it's a legitimate question to ask the lawyer/accountant - you're the Client.

Edited May 21, 2005 by Steve2UK