30 Year Lease.

[crazykopite]

I have been asked if I am prepared to lease out a plot of beach land that I purchased through a Thai registered company a number of years ago. I have 6 years of audited company accounts. I informed the person who wants to lease the land that I would only do it for a total of 30 years non renewable of which they are happy with. I understand that this lease would have to be registered with the local land office and that fees would have to be paid, who is responsible for these fee's. My other question is that as the Thai company would still be the owner of the land, taxes would have to be paid would this be a one off payment up front or yearly when submitting the company accounts.

Edited September 16, 2011 by thaiphoon
Fonts resized for better reading

[InterestedObserver]

Somebody will be taxed 12.5% annually on the assessed value of the lease. Write the payment into the lease contract so the company is not stuck with the bill.

[crazykopite]

Somebody will be taxed 12.5% annually on the assessed value of the lease. Write the payment into the lease contract so the company is not stuck with the bill.

Many thanks, any other advice you can offer would be welcome.

[beamer]

GO talk to your lawyer who looks after your Thai Company and its annual tax returns would be a good start ! He can then explain to you al Liabilty and obligations

[simon43]

The land tax that has to be paid when the lease is registered at the land office is normally paid by the lessee. It is 1% (or maybe 1.1% - can't remember), and it has to be paid upfront for the total lease period. Registering the land lease at the land office gives legal protection to both lessor and lessee, in case of dispute at some point in the future.

Simon

[stgrhe]

The land tax that has to be paid when the lease is registered at the land office is normally paid by the lessee. It is 1% (or maybe 1.1% - can't remember), and it has to be paid upfront for the total lease period. Registering the land lease at the land office gives legal protection to both lessor and lessee, in case of dispute at some point in the future.

Simon

That is a one time payment but, as Interested Observer point out, there is an annual tax of 12.5% on the assessed value that needs to be paid too. This tax applies to:

1) All who owns a house through the company route whether the house is occupied or not; and

2) All who lease their house (land) but rent it out to a tenant.

This tax is, furthermore, not intended to be paid by tenants but by the owners. I personally would never agree to pay this tax should I ever rent a house.

[crazykopite]

GO talk to your lawyer who looks after your Thai Company and its annual tax returns would be a good start ! He can then explain to you al Liabilty and obligations

Will do many thanks