5 Year Ownership Rule.

[breadbin]

Hello

My mate purchased land with his wife in 2007 in Issarn. They then built a house the following year (2008) they don't use it much.

In October this year they (wifes name) have owned the land 5 years and they want to sell up and buy closer to the coast.

The question I cant answer is about the 5 year rule with regards to business tax payable of 3.3% if you sell before 5 years.

So, does the 5 year period commence on purchase of the land or on another date if you build a house on the land?

I say from the date the land was initially registered but look forward to others opinions.

Thank you

Breadbin

[LennyW]

From the day the change of owner is recorded on the chanote.

[breadbin]

Thanks LennyW, just as I thought but was not 100% certain.

I'll let him know, better to pay the 0.5% rather than 3.3% (IMHO!)

Thanks again

[Khun Jean]

Just to add.

It is not a choice, it is a rule.

Easily determined by the dates registered on the chanot.

Don't forget the personal income tax.

So if the land office tells you to pay a certain amount you can only counter it with rules and numbers.

Be prepared and know which parts you have to pay.

It is a choice who will pay some of the taxes. Agree on those before going to the land office and mention it in the contract.

Instead of repeating it here, read it on http://www.samuiforsale.com/knowledge/real-property-transfer-taxes-and-fees.html

Edited August 14, 2012 by Khun Jean