Buying & Selling Land Taxes & Fees

[newbepat]

My girlfriend bought 6 Rai land 4 years ago for 2.2mil bht she is now selling 3 rai for 2.2 mil bht

1 How much tax will she have to pay on the sale

2 How much fees will she have to pay on the sale

3 Will she have to pay income tax later ( she has no income at the moment)

Thanks in advance for your comments.

[breadbin]

The land office can work out the taxes exactly.

[ballbreaker]

What did buyer and seller agree to concerning who pays which taxes?

Here are required fees and taxes due at transfer.

Government transfer fee - 2%

Stamp duty is exempt if Business tax paid - 0.5%

Business tax only due if owned less than 5 years - 3.3%

Withholding tax - tax at progressive rate

[PattayaPhom]

100% profit!!! Thats one to stump the neysayers

[newbepat]

What did buyer and seller agree to concerning who pays which taxes?

Here are required fees and taxes due at transfer.

Government transfer fee - 2%

Stamp duty is exempt if Business tax paid - 0.5%

Business tax only due if owned less than 5 years - 3.3%

Withholding tax - tax at progressive rate

Thanks ballbreaker

Seller agreed to pay taxes

So as she owns the land less than 5 years

that should be 2% + 3.3% = 5.3%

Can you explain : Withholding tax - tax at progessive rate ?

[Jobo]

I would assume by Witholding Tax he means Income Tax or Capital Gains Tax.

If Income Tax is payable the rate of tax (%) is progressive from 0% to something like 37% although at the higher income levels the % has reduced for income derived from 1/1/13.

For example prior to 2013 income was taxed as follows (all numbers annual income) -

0 - 150,000 baht 0%

150,001 - 500,000 baht 10%

500,001 - 1,000,000 baht 20%

1,000,001 - 4,000,000 baht 30%

4,000,000 + 37%

The Revenue Department may assume that your GF/Wife has received income (profit) and income tax is payable. You need to check with accountant.

[Jobo]

Taxable income being the sales value less cost and maybe expenses.

So -

2.2m sale price - 1.1m (cost) - (transfer fee + business tax + stamp duty) = taxable income

[Jobo]

Witholding tax could also be the 1% payable at transfer time!