Chanote Deed Transfer Cost

[TTSIssues]

Quick question, and my apologies if this has been answered before: GF is buying a9 rai chanote near Chiang Mai for 650k baht. Deed transfer should be 2.3% as I understand it. But land office is demanding 99k for the deed transfer. They say the land has been valued by the bank at 1.9 million, there she must pay 99k. Even my maths works out 2.3% of 99k at 43.7k, so the demand for 99k is a mystery! I have told her she must get a detailed invoice from the explaining the charge which I can send to my lawyer, but they can't produce one ( or won't)

Unfortunately my lawyer is in the south so can't really help much in person

Does anyone have any idea(apart from money going in someone's pocket) as to how the charge of 99k has come about, and whether this sounds legit? If not legit, how can we appeal? Seems extraordinarily high to me

Thanks in advance

[TTSIssues]

I forgot to add, sale is from person to person ( not a business ) and the seller has owned the land more than 5 years. Cheers

[AnotherOneAmerican]

I haven't found any land with a chanote within 20Km of CM for less than 500k per rai.

Would you like to sell me some of your 9 rai?

Edited April 23, 2013 by AnotherOneAmerican

[jbrain]

Land near Cm with chanote is at least 300k per Rai.

I haven't found any land with a chanote within 20Km of CM for less than 500k per rai.

But that is not the OP's question.

He says the landoffice values the land at 1.9 million Baht and charges 99K transfer cost.

Edited April 23, 2013 by jbrain

[TTSIssues]

It's 2 hours away north of lampang :-)

[nycjoe]

I believe that the tax department goes by the value that they think the land is worth to get more revenue. They recently increased their assessment.

By the way is this land on the face of a cliff or is family selling it to her?

[TTSIssues]

I have searched thru other posts on this type of topic and having asked her, she has told me she agreed with the seller to pay all taxes, but my issue still is that 99k is over 15% - so something must be wrong somewhere?

[TTSIssues]

Not family, it's a nice piece of land currently being used to grow corn, but in the middle of nowhere so no value for housing or anything.

[jbrain]

I have searched thru other posts on this type of topic and having asked her, she has told me she agreed with the seller to pay all taxes, but my issue still is that 99k is over 15% - so something must be wrong somewhere?

With my calculator 99K on 1.9 million is something like 5.2%.

I hope you understand that if they said the bank valued at 1.9 million, that it mean they will calculate the transfer cost on that value as they consider it to be the value.

[TTSIssues]

Yes, fully understand- the 15% is on the actual cost. Wish it was worth 1.9m as she would sell it today and buy a fortuner with the profit. All I can think is that 5.2 % is the 2% plus 3.2% business tax that is payable if held less than 5 years. That's puts the fees in the right ballpark, although she assures me he has held the land a long time.

[PattayaPhom]

5% is about right.

[jbrain]

5% is about right.

And unless taking a figure out of thin air, could you explain how you get to 5% ?

[PattayaPhom]

Transfer tax, stamp duty and business tax. Witholding tax of 1% not payable as owned longer than 5 years.

[jbrain]

Transfer tax, stamp duty and business tax. Witholding tax of 1% not payable as owned longer than 5 years.

Why business tax for a transaction between two private person ?

Just found this

Business Tax 3.3% of the registered (sale) value or appraised value (whichever is higher) but not paid if owned over 5 years

Edited April 23, 2013 by jbrain

[PattayaPhom]

Witholding tax is paid if under 5 years. Not sure where you got the info from.

[jbrain]

Witholding tax is paid if under 5 years. Not sure where you got the info from.

From the topic where you made another silly comment that a foreigner pays more transfer taxes than a Thai.

http://www.thaivisa.com/forum/topic/631726-transfer-fee-is-2-is-it-legal-for-a-developer-to-ask-for-more/

[DonaldBattles]

Land transfer tax and the law up country is what they decide it is today. Never mind what someone tells you. It is a matter of what they think and feel today.

[TTSIssues]

Thanks everyone. Guess they have her in a position where she has to pay up. Really appreciate the feedback. Thanks again.

[muratremix]

99k transfer for 650k land is crazy. I think its better you use some lawyer to reduce this cost.

[ThaidDown]

Whilst I cannot see how they arrived at the total amount, I will say that the taxes/costs are based on the selling price or land office appraised price whichever is the greater.

They should still be able to provide a breakdown of costs though.

[perconrad]

At transfer of Chanote there must be paid 0,5% stamp, 2 % transfer fee and withholding tax. The withholding tax is not so easy to calculate.

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

http://lawonline.weebly.com/property-transfer-tax-and-fee.html

Here are 2 links who explain something about it.

Edited April 24, 2013 by perconrad

[breadbin]

It's the land office valuation not the buyer/sellers valuation.

They do this because people try to get around paying tax buy saying a lesser price and then doing a cash deal.

Makes sense to me.