Buying A House Using A Company

[Rob5060]

I

Edited May 19, 2005 by ROB5060

[udon]

Good edit

[Totster]

Could have at least put..."see duplicate post" ....

totster

[Rob5060]

Could have at least put..."see duplicate post" ....   

totster 

<{POST_SNAPBACK}>

Sorry guys I am not too used to this forum

yet

However thanks for looking ,what about an answer to the question!

Edited May 20, 2005 by ROB5060

[Jai Dee]

However thanks for looking ,what about an answer to the question!

What's your question mate?

And just before you do ask, have you searched the forum first for similar topics to your question? Heaps of answers and opinions here...

[The_Other_Mac]

How about "guess the question"?

"I... heard that buying a house using a company is against the law. Is this true?"

[chownah]

How about "guess the question"?

"I... heard that buying a house using a company is against the law. Is this true?"

<{POST_SNAPBACK}>

I don't know about him but that's the question I want answered. I remember a couple three years ago Toxin said that he was going to have that loophole closed....did he do it?

[expatinasia]

That "loophole" is alive and well.

[thaigene2]

I think he's about to tighten the noose. He could introduce a tax tomorrow if he wanted that said something like 'any registered company with more than 1% foreign ownership must show accounts with active trading of xxx million baht, etc'..or pay a minimum tax of xx million baht' - what's to stop him? The companies that are really trading and making money won't be affected...just the shell companies..so the rich farang get off the hook. Thailand wants rid of the hillbilly foreigners..he can and probably will do it ..mark my words.

[Sumitr Man]

I think he's about to tighten the noose. He could introduce a tax tomorrow if he wanted that said something like 'any registered company with more than 1% foreign ownership must show accounts with active trading of xxx million baht, etc'..or pay a minimum tax of xx million baht' - what's to stop him? The companies that are really trading and making money won't be affected...just the shell companies..so the rich farang get off the hook. Thailand wants rid of the hillbilly foreigners..he can and probably will do it ..mark my words.

<{POST_SNAPBACK}>

Apart from the fact that most JVs in Thailand use holding companies to hold shares in subsidiary companies and could be regarded to fall within the scope you mention. Also, the number of preference share structure Thai owned / foreigned controlled companies is now massive <-- far exceeding the number of foreigners who structure their house purchase this way.

Indeed, I believe that the Thaksin family themselves have structures similar to this <-- although I freely admit I could be wrong.

My guess, he wouldn't be in a rush to upset too many foreigners just at this moment - he's still getting over the egg on his face following a certain GE contract.

In the future, anyone's guess.

SM

Edited May 31, 2005 by Sumitr Man

[thaigene2]

Also, the number of preference share structure Thai owned / foreigned controlled companies is now massive <-- far exceeding the number of foreigners who structure their house purchase this way.

...

SM

<{POST_SNAPBACK}>

Sure..my point is that these people would be unaffected..he'd just go after the shell companies in Thailand with no trades where a farang is a shareholder..it would be easy..basically, there are many ways to weed out the abusers of the company registration process for property ownsership..and then whack em with a tax..

[Sumitr Man]

Also, the number of preference share structure Thai owned / foreigned controlled companies is now massive <-- far exceeding the number of foreigners who structure their house purchase this way.

...

SM 

<{POST_SNAPBACK}>

Sure..my point is that these people would be unaffected..he'd just go after the shell companies in Thailand with no trades where a farang is a shareholder..it would be easy..basically, there are many ways to weed out the abusers of the company registration process for property ownsership..and then whack em with a tax..

<{POST_SNAPBACK}>

[see bolded]

Which is exactly my point.

Structure:

Company A: 100% foreign owned Thai Ministry of Commerce private limited company established to hold 49% of the preference shares in JV Company B.

In your scenario, Company A would be "weeded out" as an "absuer of the company registration process"

And my point is - there are far more companies structured like this investing in Thailand than there are foreigners absuing the company registration process. So, I could well be wrong, because no one, not even he, knows what Thaksin is going to do, but I think you'll find this will not be high up on his "to do" list.

SM