New Law Tax Leasing ?

[april81]

Hello,

I did last year a leasing contract to buy a land to Krabi with my thai girlfriend and now she is my wife . I just received a mail from my lawyer, do you heard about it ? Do i have to pay ? Thanks a lot for your advice, i don't really know what to do

It has come to our attention that the Tax and Revenue Department in Krabi has changed

its policies with regards to Long Term Leases on land and property.

It has been a common practice for many foreigners to use a Thai national to purchase

land or a home and then have the Thai national issue a 30 year Long Term Lease to the

foreigner. Often this transaction was between Thai wife and foreign husband to secure the

husband's rights to the property.

Until recently, the Tax and Revenue Department has ignored these transactions, but now

they are assessing a personal income tax on the Thai national who issued the Long Term Lease

with the tax- based on the assessment price of the lease registered at the Krabi Land

Department.

As a Thai national, if you have issued a Long Term Lease to a foreigner in the last two

years, you are liable, and may be assessed personal income taxes on the "income" as shown on

the Long Term Lease. If you plan to enter into an agreement in the future, we strongly advise

you seek the advice of a registered accountant to determine your liability.

If you have any additional questions, please feel free to contact us.

[InterestedObserver]

Nothing new there, a tax on leased property has been Thai law for sometime.

[april81]

Nothing new there, a tax on leased property has been Thai law for sometime.

Thanks for your answer, i paid taxes already to the land office when i registered the leasing contract so i have to pay every year ?

[InterestedObserver]

Nothing new there, a tax on leased property has been Thai law for sometime.

Thanks for your answer, i paid taxes already to the land office when i registered the leasing contract so i have to pay every year ?

You did not pay the annual 12.5% building and land tax on the value of the lease. The law was recently changed, so the tax rate may not be the same.

[april81]

Nothing new there, a tax on leased property has been Thai law for sometime.

Thanks for your answer, i paid taxes already to the land office when i registered the leasing contract so i have to pay every year ?

You did not pay the annual 12.5% building and land tax on the value of the lease. The law was recently changed, so the tax rate may not be the same.

Ok thanks i understand now, can i go pay by myself and go alone to the land office or it's my wife have to do it ?

[Soboringtochooseaname]

Hello,

I wonder what would happen if you don't pay ?

Are they going to contact you again ?

Have to pay more ?

Thanks.

[april81]

Hello,

I wonder what would happen if you don't pay ?

Are they going to contact you again ?

Have to pay more ?

Thanks.

That's true the land office or taxe office never contact me or my wife to pay this taxe so should i wait and see ?

Thanks

[stgrhe]

Nothing new there, a tax on leased property has been Thai law for sometime.

Thanks for your answer, i paid taxes already to the land office when i registered the leasing contract so i have to pay every year ?

You did not pay the annual 12.5% building and land tax on the value of the lease. The law was recently changed, so the tax rate may not be the same.

The onus to pay the 12.5% tax lies solely with land owner, not the leaseholder. Hence, it is perfectly right not to pay that tax if one is a leaseholder.

The same tax applies also to those owing property through the company route and to any property owner that rents his/her property to a second party. It is thus not limited to lease rights to foreigners.

[april81]

Nothing new there, a tax on leased property has been Thai law for sometime.

Thanks for your answer, i paid taxes already to the land office when i registered the leasing contract so i have to pay every year ?

You did not pay the annual 12.5% building and land tax on the value of the lease. The law was recently changed, so the tax rate may not be the same.

The onus to pay the 12.5% tax lies solely with land owner, not the leaseholder. Hence, it is perfectly right not to pay that tax if one is a leaseholder.

The same tax applies also to those owing property through the company route and to any property owner that rents his/her property to a second party. It is thus not limited to lease rights to foreigners.

Ok but the leaseholder is my wife, should i wait the land office or taxes office send me a letter to pay it ?

Thanks

[InterestedObserver]

Ok but the leaseholder is my wife, should i wait the land office or taxes office send me a letter to pay it ?

Thanks

If you are legally married your wife's bills are your bills, but I'd wait until officially notified. Are you paying the annual local land tax assessment?

[april81]

Ok but the leaseholder is my wife, should i wait the land office or taxes office send me a letter to pay it ?

Thanks

If you are legally married your wife's bills are your bills, but I'd wait until officially notified. Are you paying the annual local land tax assessment?

Hello, no i didn't heard about this taxe before, I paid one time only when i signed the contract, that's all, my lawyer didn't tell me so you think they wil send me the bills ?

[InterestedObserver]

Ok but the leaseholder is my wife, should i wait the land office or taxes office send me a letter to pay it ?

Thanks

If you are legally married your wife's bills are your bills, but I'd wait until officially notified. Are you paying the annual local land tax assessment?

Hello, no i didn't heard about this taxe before, I paid one time only when i signed the contract, that's all, my lawyer didn't tell me so you think they wil send me the bills ?

The local land taxes are quite small, It's the tax on commercial use, i.e. a lease, that is assessed at 12.5%.

[Soboringtochooseaname]

I guess they will never ask anything to pay and you don't have to contact them.

[april81]

Ok but the leaseholder is my wife, should i wait the land office or taxes office send me a letter to pay it ?

Thanks

If you are legally married your wife's bills are your bills, but I'd wait until officially notified. Are you paying the annual local land tax assessment?

Hello, no i didn't heard about this taxe before, I paid one time only when i signed the contract, that's all, my lawyer didn't tell me so you think they wil send me the bills ?

The local land taxes are quite small, It's the tax on commercial use, i.e. a lease, that is assessed at 12.5%.

Hello,

So what's that mean ? My leasing contract is for 30 years = 600.000 baths so (600.000 X12.5%) /30 = 2500 bahts/year ?

Thanks again

[InterestedObserver]

Hello,

So what's that mean ? My leasing contract is for 30 years = 600.000 baths so (600.000 X12.5%) /30 = 2500 bahts/year ?

Thanks again

Unless the assessed value is higher.