Current Land Transfer Costs?

[Smithson]

We are buying about 5.5 rai of land, the land has a chanote, the price is 525k. Someone has been doing running around for us, checking at the land office etc. Today the called to say all costs involved in the transfer would be 35k. This seems way to high, I think the land is valued at 76k per rai by the land office.

Any thoughts or suggestions?

[stgrhe]

There are four items:

1. Transfer fee = 2% of the registered value of the property

2. Stamp duty = 0.5% of registered value. Only payable if exempt from business tax

3. Withholding tax = 1% of the appraised value of the property

4. Business tax = 3.3% of the appraised value of the property if selling within 5 years. This applies to both individuals and companies

The transfer fee is the only one that normally should be payed by the buyer. The stamp duty and the taxes should be carried by the seller.

[dinga]

There are four items:

1. Transfer fee = 2% of the registered value of the property

2. Stamp duty = 0.5% of registered value. Only payable if exempt from business tax

3. Withholding tax = 1% of the appraised value of the property

4. Business tax = 3.3% of the appraised value of the property if selling within 5 years. This applies to both individuals and companies

The transfer fee is the only one that normally should be payed by the buyer. The stamp duty and the taxes should be carried by the seller.

G'day STGRHE

That was my understanding also, until our dealings with the Klaeng Land Office last week. My wife just purchased the house next door to our bungalow, the previous owner having owned the place for over 10 years (rental property - not his main residence).

The declared purchase price was 680,000, with the official appraised value being 853,700. The transfer costs charged were:

* Transfer Fee: 17,074 (2%)

* Stamp Duty: 4,276 (0.5%)

* Witholding Tax: 21,343 (which equates to 2.5%)

My question relates to the WHT - any idea why 2.5% was charged??? (the locals were less than helpful, so any suggestions appreciated before the mrs looks for clarification from the BKK head office)

BRs

Edited May 23, 2011 by dinga

[stgrhe]

Sorry, I don't know but since most, if not all, land offices are corrupt, I assume the extra 1.5% is part of their 'tea money'. In any case I think the seller should have paid the withholding tax, not your wife as the buyer.

Edited May 24, 2011 by stgrhe

[dinga]

Sorry, I don't know but since most, if not all, land offices are corrupt, I assume the extra 1.5% is part of their 'tea money'. In any case I think the seller should have paid the withholding tax, not your wife as the buyer.

A single, official receipt was issued for all the duties/taxes, including the 2.5% WHT. Good that it isn't 'tea money" and my Land Office simply frustratingly slow - not corrupt. Negotiations to reduce the asking price included us paying these fees.

Any other suggestions before Mrs Dinga girds the loins, and tackles (pun intended) Land Office Central on Friday?

Tks

[kimmy]

Sorry, I don't know but since most, if not all, land offices are corrupt, I assume the extra 1.5% is part of their 'tea money'. In any case I think the seller should have paid the withholding tax, not your wife as the buyer.

A single, official receipt was issued for all the duties/taxes, including the 2.5% WHT. Good that it isn't 'tea money" and my Land Office simply frustratingly slow - not corrupt. Negotiations to reduce the asking price included us paying these fees.

Any other suggestions before Mrs Dinga girds the loins, and tackles (pun intended) Land Office Central on Friday?

Tks

The 1% wht is only for co.ltd's, for individuals check this link http://rdsrv2.rd.go.th/landwht/landwht06_1.asp

[dinga]

Sorry, I don't know but since most, if not all, land offices are corrupt, I assume the extra 1.5% is part of their 'tea money'. In any case I think the seller should have paid the withholding tax, not your wife as the buyer.

A single, official receipt was issued for all the duties/taxes, including the 2.5% WHT. Good that it isn't 'tea money" and my Land Office simply frustratingly slow - not corrupt. Negotiations to reduce the asking price included us paying these fees.

Any other suggestions before Mrs Dinga girds the loins, and tackles (pun intended) Land Office Central on Friday?

Tks

The 1% wht is only for co.ltd's, for individuals check this link http://rdsrv2.rd.go....landwht06_1.asp

Tks Kimmie. I've been through the calcs have have concluded it's better to let sleeping dogs lie ie. Mrs Dinga's shopping will not be disturbed by a trip to Land Office HQ. This exercise has been instructive though, in again highlighting that website information cannot be relied on - even if the information is consistent and provided by law firms.