Difference In Selling Costs

[seaeagle]

Can anyone give information on the difference in selling costs and taxes etc where,

1) The land and house has been owned for more than the 5 years limit

2) The land and house has been owned for less than the 5 years limit

(Answers about any applicable percentage rates would be great, as, of course, I can't guess any actual, declared and assessed sale values yet)

Just to explain to anyone who's not familiar with the 5 year limit, it is where the land office considers a sale of over 5 years ownership to be a normal transaction, but where anything sold under 5 years ownership is considered a property investment business-type transaction. So, for the latter, they cream off a bit more. But, how much more? Thanks.

[JeffreyMcCollum]

My condos that I sold in less than 5 years I was charged an additional 5% investment tax as they told me. + the normal 2 % transfer fee.

Remember the price the land is sold for and that the land office thinks the land should sell for is not always the same and I have been assessed more

[PattayaPhom]

Sattahip recently charged 3% of the assesed value, this was paid soley by the seller. Transfer taxes were split

[ballbreaker]

If property held less than 5 years you pay business tax of 3.3% but no stamp duty.

If property held over 5 years you pay stamp duty of 0.5% but no business tax.

Transfer fee of 2% and withholding tax which has complicated formula to calculate are also paid at transfer.

[mpm]

If property held less than 5 years you pay business tax of 3.3% but no stamp duty.

If property held over 5 years you pay stamp duty of 0.5% but no business tax.

Transfer fee of 2% and withholding tax which has complicated formula to calculate are also paid at transfer.

I was in pattaya land office to ask how much would have to be paid for transfer of my condo. I own the condo 8 years selling it from faring to faring, 2% transfer fee and 5%tax, this about over 5year you don't pay tax just ain't right, rang agent he confirmed saying there ain't no 5year rule..so selling condo at 4mil have to pay 268k to land office...50 50 with buyer but what a rip off

[LennyW]

THAILAND PROPERTY TAXES

Transfer fee

2% of the registered value of the property

Stamp Duty

0.5% of registered value. Only payable if exempt from business tax

Withholding tax

1% of the appraised value of the property

Business tax

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

.

TAX

WHICH PARTY NORMALLY PAYS

AMOUNT

Transfer fee

Buyer

2% of registered value

Stamp Duty

Seller

0.5% of registered value

Withholding Tax

Seller

1% of appraised value

Business Tax

Seller

3.3% of appraised value

From here.....http://www.siam-legal.com/realestate/thailand-property-taxes.php

And........

Specific Business Tax

SBT is charged at a rate of 3%, plus a municipal tax of 10% on the amount of the specific business tax, bringing the total tax to 3.3%. This is charged if the seller is a company (specific exemptions applied), or if the seller is an individual and sells the property within five years of the purchase registration date. The transfer is not subject to business tax if the seller is an individual and has possessed the property for more than 5 years before the transfer. Other exemptions are for example if the seller transfers the real property to a legal heir or heir by a will or the seller transfers the real property to a legitimate child (there are other specific exemptions). Companies transferring property are subject to Specific Business Tax, irrespective the period of ownership but there are exemptions depending on the business objectives of the company.

From here........http://www.thailandlawonline.com/article-blog/property-coneyancing-condominium-transfer-tax.html

[Pseudolus]

And I quote OP, from your kind considerate post on my request of help over a tax issue....

"If you should pay tax, then pay it. People like you are just as bad as the work-shy spongers who expect the state to look after them."

[mpm]

THAILAND PROPERTY TAXES

Transfer fee

2% of the registered value of the property

Stamp Duty

0.5% of registered value. Only payable if exempt from business tax

Withholding tax

So Lenny are you saying that I who owned the condo in my name not a company lived in it, should not. Have to pay income tax or business tax? Thanks

1% of the appraised value of the property

Business tax

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

.

TAX

WHICH PARTY NORMALLY PAYS

AMOUNT

Transfer fee

Buyer

2% of registered value

Stamp Duty

Seller

0.5% of registered value

Withholding Tax

Seller

1% of appraised value

Business Tax

Seller

3.3% of appraised value

From here.....http://www.siam-legal.com/realestate/thailand-property-taxes.php

And........

Specific Business Tax

SBT is charged at a rate of 3%, plus a municipal tax of 10% on the amount of the specific business tax, bringing the total tax to 3.3%. This is charged if the seller is a company (specific exemptions applied), or if the seller is an individual and sells the property within five years of the purchase registration date. The transfer is not subject to business tax if the seller is an individual and has possessed the property for more than 5 years before the transfer. Other exemptions are for example if the seller transfers the real property to a legal heir or heir by a will or the seller transfers the real property to a legitimate child (there are other specific exemptions). Companies transferring property are subject to Specific Business Tax, irrespective the period of ownership but there are exemptions depending on the business objectives of the company.

From here........http://www.thailandlawonline.com/article-blog/property-coneyancing-condominium-transfer-tax.html

[mpm]

Lenny this read lick I who owned condo in my name and lived there as my home should not have to pay income or business tax? But the woman in land office told me yesterday I have to pay income tax totaling 165,900 on a value they put on the condo of 4 mil 100 and 18 k.....and I've opened it for 8years!!!

[gmac]

And I quote OP, from your kind considerate post on my request of help over a tax issue....

"If you should pay tax, then pay it. People like you are just as bad as the work-shy spongers who expect the state to look after them."

Seems to me OP is just asking what rate he should expect to pay rather than how to avoid paying something that is due. Rather different to your situation of someone who has not followed the proper procedures and now wants to get out of paying taxes that may be due.

[LennyW]

Lenny this read lick I who owned condo in my name and lived there as my home should not have to pay income or business tax? But the woman in land office told me yesterday I have to pay income tax totaling 165,900 on a value they put on the condo of 4 mil 100 and 18 k.....and I've opened it for 8years!!!

Maybe you could contact the company in the link, Siam Legal, and discuss your situation, just a thought.

[hhgz]

http://www.siam-legal.com/realestate/thailand-property-transfer-tax.php