The cost of losing my blue plate - tax implications

[Niltava]

My partner is leaving her diplomatic job, but we are staying in Thailand.

We want to keep our car (built 2002) which we bought secondhand in Japan and imported tax free.

Looking at the Customs website it appears that the tax we need to pay will be calculated on the CIF price (Cost+Insurance+Freight) ie the amount we paid for the vehicle (about USD 8,500). However the Customs Office have informed my partner that the tax will need to be calculated on the Year 2002 "Customs Price" which they state is USD 17,000 (which I am guessing the cost of the car when it was new).

Obviously this will double the tax bill, and if so we will need to reconsider whether or not we keep the car.

Is the customs office correct, or are they trying to pull a fast one?

Thanks,

N

[Spoonman]

Customs is correct.

[Niltava]

Spoonman - thanks, for the bad news!

What on earth is the justification for calculating the tax based on a "like new" price rather than on the actual "price paid"?

Now we will have to decided whether to keep it (CR-V) or replace it with a new Jazz/City or similar...

[anon210]

Spoonman - thanks, for the bad news!

What on earth is the justification for calculating the tax based on a "like new" price rather than on the actual "price paid"?

Now we will have to decided whether to keep it (CR-V) or replace it with a new Jazz/City or similar...

The justification is simply that you have been allowed an exemption from the vicious import duties by virtue of your diplomatic status (and conditional to reexporting it or selling it to another diplomat). If all diplomats could import cars from abroad tax free and resell them, you would immediately have a lucrative traffic taking place.

[Niltava]

Spoonman - thanks, for the bad news!

What on earth is the justification for calculating the tax based on a "like new" price rather than on the actual "price paid"?

Now we will have to decided whether to keep it (CR-V) or replace it with a new Jazz/City or similar...

The justification is simply that you have been allowed an exemption from the vicious import duties by virtue of your diplomatic status (and conditional to reexporting it or selling it to another diplomat). If all diplomats could import cars from abroad tax free and resell them, you would immediately have a lucrative traffic taking place.

I have no problem with paying tax on the car, but I'm just a bit shocked that we have to calculate it based on the "New value". rather than based on what we paid.

Ouch, ouch, OUCH!

This makes it even more amazing (at the risk of going off-topic!) that there are so many Benz on the streets of Bkk.

Thanks and best wishes,

N

[Ace of Pop]

Many who leave their Embassy Jobs don't say anything.

[Gsxrnz]

Spoonman - thanks, for the bad news!

What on earth is the justification for calculating the tax based on a "like new" price rather than on the actual "price paid"?

Now we will have to decided whether to keep it (CR-V) or replace it with a new Jazz/City or similar...

The justification is simply that you have been allowed an exemption from the vicious import duties by virtue of your diplomatic status (and conditional to reexporting it or selling it to another diplomat). If all diplomats could import cars from abroad tax free and resell them, you would immediately have a lucrative traffic taking place.

I have no problem with paying tax on the car, but I'm just a bit shocked that we have to calculate it based on the "New value". rather than based on what we paid.

Ouch, ouch, OUCH!

This makes it even more amazing (at the risk of going off-topic!) that there are so many Benz on the streets of Bkk.

Thanks and best wishes,

N

Customs are charging you the tax that was avoided based on the date that it was avoided, and the values attributable at the time.

Watch out because they may even tack on an additional "use of money" (interest) cost. This would be the time value of the money while it has been technically withheld from the government. The IRD in New Zealand wouldn't bat an eye in making a charge like this.

[Niltava]

"Customs are charging you the tax that was avoided based on the date that it was avoided, and the values attributable at the time."

Thanks, however I assume from this statement that you mean based on the tax avoided when the car was imported in to Thailand (four years ago) as a secondhand car. If that is the case, then should we not be paying tax on the sum of USD 8700 (TBH 272,000) - which was the "value attributable at the time"? Not TBH 550,000 as suggested by the Customs officer.

If I bought a second hand car from Japan today and imported in to Thailand, would I pay customs tax based on the price I paid for the car, or based on some other value selected by Thai customs?

Thanks!

N

[stevenl]

"Customs are charging you the tax that was avoided based on the date that it was avoided, and the values attributable at the time."

Thanks, however I assume from this statement that you mean based on the tax avoided when the car was imported in to Thailand (four years ago) as a secondhand car. If that is the case, then should we not be paying tax on the sum of USD 8700 (TBH 272,000) - which was the "value attributable at the time"? Not TBH 550,000 as suggested by the Customs officer.

If I bought a second hand car from Japan today and imported in to Thailand, would I pay customs tax based on the price I paid for the car, or based on some other value selected by Thai customs?

Thanks!

N

You'd pay "based on some other value selected by Thai customs?"

[steveromagnino]

customs can choose the value of your car, it is not related to any paperwork you might produce.

This is the much of the foundation of the fake invoicing and tax avoidance scandal that the DSI was investigating and now has decided to leave alone (because of likely the connected parties who are part of the scam) in the various grey market import car scams.

If you try to import a car they will assess it at the value they see fit; they see that this is the value of a new car, not a second hand one. You don't get to dispute this, as they can apply what they see as its fair market value...and they see that as the value of a new one, not a second hand one.

In all likelihood you have 2 choices:

1. don't mention you left the service

2. figure out some way to sell the car so it goes abroad - there is someone in Pattaya who sends cars to Pakistan for instance

This is widely considered one of the most money grabbing of all the Thai ministries, and with the clamp down on grey market cars, no doubt they will squeeze extra hard when they can now.

[Niltava]

customs can choose the value of your car, it is not related to any paperwork you might produce.

This is the much of the foundation of the fake invoicing and tax avoidance scandal that the DSI was investigating and now has decided to leave alone (because of likely the connected parties who are part of the scam) in the various grey market import car scams.

If you try to import a car they will assess it at the value they see fit; they see that this is the value of a new car, not a second hand one. You don't get to dispute this, as they can apply what they see as its fair market value...and they see that as the value of a new one, not a second hand one.

In all likelihood you have 2 choices:

1. don't mention you left the service

2. figure out some way to sell the car so it goes abroad - there is someone in Pattaya who sends cars to Pakistan for instance

This is widely considered one of the most money grabbing of all the Thai ministries, and with the clamp down on grey market cars, no doubt they will squeeze extra hard when they can now.

Thanks for the bad news!

we will probably go with one of the other options:

3. suck it up and pay Customs , or

4. sell the car and by something newer

The car has very low mileage and I'm thinking of converting it to LPG - if we do that I've estimated that it would cost us a bit less than a hybrid Jazz over the next 5 years (even with the hefty tax bill).

N

[NCC1701A]

"Customs are charging you the tax that was avoided based on the date that it was avoided, and the values attributable at the time."

Thanks, however I assume from this statement that you mean based on the tax avoided when the car was imported in to Thailand (four years ago) as a secondhand car. If that is the case, then should we not be paying tax on the sum of USD 8700 (TBH 272,000) - which was the "value attributable at the time"? Not TBH 550,000 as suggested by the Customs officer.

If I bought a second hand car from Japan today and imported in to Thailand, would I pay customs tax based on the price I paid for the car, or based on some other value selected by Thai customs?

Thanks!

N

look at chart at bottom of this link:

http://www.customs.go.th/wps/wcm/connect/custen/individuals/importing+personal+vehicle/importingpersonalvehicle

[Langsuan Man]

If the car has been in Thailand for 5 years then there will be no tax levied when the plates change, otherwise Customs is correct. This is why there are so few "diplomatic" cars for sale here in Thailand

[mogandave]

I would recommend your friend get some advice from the legal department at her workplace prior to leaving their service.

Advice is often worth less than what you pay for it.

[stevenl]

I would recommend your friend get some advice from the legal department at her workplace prior to leaving their service.

Advice is often worth less than what you pay for it.

Why get advice if it is worth nothing?

Agree with you, get advice, but I do think advice can be worth more than what you pay for it, even more so if the advice is free.

[billd766]

"Customs are charging you the tax that was avoided based on the date that it was avoided, and the values attributable at the time."

Thanks, however I assume from this statement that you mean based on the tax avoided when the car was imported in to Thailand (four years ago) as a secondhand car. If that is the case, then should we not be paying tax on the sum of USD 8700 (TBH 272,000) - which was the "value attributable at the time"? Not TBH 550,000 as suggested by the Customs officer.

If I bought a second hand car from Japan today and imported in to Thailand, would I pay customs tax based on the price I paid for the car, or based on some other value selected by Thai customs?

Thanks!

N

look at chart at bottom of this link:

http://www.customs.go.th/wps/wcm/connect/custen/individuals/importing+personal+vehicle/importingpersonalvehicle

I had a feeling that whilst the basic charge was on the new price of the vehicle at that time there was also a sliding scale of discount based on the age and condition of the vehicle.

You are also the original owner of the vehicle as well so that may well count in your favour.

[mogandave]

I would recommend your friend get some advice from the legal department at her workplace prior to leaving their service.

Advice is often worth less than what you pay for it.

Why get advice if it is worth nothing?

Agree with you, get advice, but I do think advice can be worth more than what you pay for it, even more so if the advice is free.

Sure it can be, that's why I used the qualifier "often".

I think the OP has a legal issue and stands to lose (or save) enough dough that trusting advice from people on a website may not be prudent. (Not that I am suggesting she’s a prude….)