Selling A Condo And Repatriating The Funds For Dummies

[Jingthing]

OK, I know some of you are experts on this, so can you please answer these basic questions (based on the example provided).

You own a condo bought with an imported 75K USD (which was 3 million baht at the time).

You have the currency import document from the Thai bank.

Years later you sell that condo for 200K USD (6 million baht).

You have a profit in Thailand of 3 million baht.

Questions --

1. With the currency import document, how much can you repatriate from that sale?

a- 3 million baht?

b- 6 million baht?

c- current value of 75K USD in baht?

d- other (what and why?)

Are there conditions for repatriating the funds, for example must you approve the Thai taxes have been payed on the profits before you can do so?

2. What is the tax liability on the PROFIT in Thailand?

a- you must pay tax on the 3 million baht profit (what rate?)

b- no tax liablity

c- other (what and why?)

BTW, yes I do personally have a potential profit from a condo IF I decide to sell it and of course IF I can actually find a buyer. For now, I want to understand what I would be able to do with the money if I go that route.

Edited January 4, 2011 by Jingthing

[PattayaParent]

When you sell you will get a tax certificate from the land office.

You can repatriate the amount that you have paid tax on.

If you have declared the full sale amount to the land office (which doesn't usually happen) and paid the tax you can send the full amount out easily.

[Jingthing]

So the tax is based on the total sales price, not the capital gains part of it? What would a typical tax be on a 6 million baht sale (with a 3 million baht profit)?

[InterestedObserver]

So the tax is based on the total sales price, not the capital gains part of it? What would a typical tax be on a 6 million baht sale (with a 3 million baht profit)?

Based on the assessed value (or declared value) and the number of years owned, calculated by the land office at the time of transfer. There is no "capital gains" tax in Thailand, it is all included as personal income tax. Best to ask the local land office.

[Jingthing]

So the tax is based on the total sales price, not the capital gains part of it? What would a typical tax be on a 6 million baht sale (with a 3 million baht profit)?

Based on the assessed value (or declared value) and the number of years owned, calculated by the land office at the time of transfer. There is no "capital gains" tax in Thailand, it is all included as personal income tax. Best to ask the local land office.

I have never filed a Thai tax return. On sale of a condo, I assume I would just pay the tax directly to the land office as part of closing the sale, correct? In that case, would there be any further requirement to file a Thai tax return? So nobody can give me even a rough idea of the tax due for a transaction like the example, say for a 10 year held condo?

[PattayaParent]

JT, someone has posted the calculation details previously if you do a search (it doesn't work for me), but yes you pay the tax to the land office and that's all, no need to file a tax return. It's not really an 'income tax' as it's a tax on the capital, but that's what they call it for some reason.

[ThaiBob]

So the tax is based on the total sales price, not the capital gains part of it? What would a typical tax be on a 6 million baht sale (with a 3 million baht profit)?

Based on the assessed value (or declared value) and the number of years owned, calculated by the land office at the time of transfer. There is no "capital gains" tax in Thailand, it is all included as personal income tax. Best to ask the local land office.

I have never filed a Thai tax return. On sale of a condo, I assume I would just pay the tax directly to the land office as part of closing the sale, correct? In that case, would there be any further requirement to file a Thai tax return? So nobody can give me even a rough idea of the tax due for a transaction like the example, say for a 10 year held condo?

I sold a condo last year and paid no withholding tax or ever filed a tax return. The buyer agreed to 50/50 of the total Land Office tax bill which of course was a good deal for me.

http://www.thailandlawonline.com/realty-transfer-ownership-tax-and-fees.html

Edited January 4, 2011 by ThaiBob