Special Business Tax

[unsuredebra]

Can anyone help with my question.

I know when selling property less than 5 years you have to pay special business tax 3.3 per cent.

Some time back on a different forum I was asking about taxes etc and someone said, if you can sell it thru your thai family it saves taxes.. so my question is out of interest, is the special business tax just for foreign nationals or does it apply to all home owners.

Kind Regards

Deb

[clinique]

it applies to everyone...

the Land department has its own set of calculations and rates which it will apply to your sale..these are Scheduled by the govt and are fixed.

if their rates for calculating the land value and the house value are lower than you sold forthen youwill be charged thier rate..and save a bit , otherwise..hard to get a "deal" on the tax.

go andtalk to the head of your local Land department - he will tell you howmuch youhave topay..

i didit last week,

took all of 10 mins,,

NOTE: the SBT is payable by the SELLER..

only the Fixed charge (currently 600 baht) and the transfer fee (currently 0.10%) are paybale by the buyer

or 50/50 if you have so agreed..

beware these too will increase substantially after 31 May.

[tangoll]

Given the proviso that I am not a Thai tax lawyer or accountant, this is what I know about the Special Bus Tax.

1. If you are a Thai national and also the owner (on chanute) and have lived in the property for over one year, then the SBT does not apply when you sell the property even if owned for less than 5 years.

2. Note that the calculation of what constitutes one year or 5 years is not your logical understanding of the period of time. In the case of calculating the revenue tax, the number of years used in the calculation depends on how many calendar years the ownership has spanned, whether it's 364 days or even one day. So, for example, if you took ownership on 31 Dec 2009, and sold and transferred to a new owner on 1 Jan 2010, the calculation of revenue tax would use two years as the basis for calculating the tax. Whether this same way is used for determining whether one year or 5 years is applied for SBT is something I don't know.

In any event, the SBT is now 3.3% of the transaction value used by Land Dept office in computing your tax if you are seller and not a Thai national, and have not yet exceeded 5 years of ownership.

Edited April 15, 2010 by tangoll

[unsuredebra]

Hi

Would just like to thank you both for your replies.

I will mention the 2nd reply to my daughter in law being she is Thai, obviously, we will have to pay the 3.3 as its not 5 years.

Kind Regards

Debra