Transfer fees for house sale

[JaiLai]

What can I expect these to be on a 6M baht sale, house in Thai name and owned for more than 5 years, transferring to another Thai name.

Anyone have a ball park figure??

Thanks

[rayongchelsea]

1. They round the year of ownership up!!! So 1 year and 1 day = 2 years.

2. They calculate the taxable income as a percentage of the declared sales value!!!

Year 1 = 8%

Year 2 = 16%

Year 3 = 23%

Year 4 = 29%

Year 5 = 35%

Year 6 = 40%

Year 7 = 45%

Year 8+ = 50%

3: They divide taxable Income (% of value) by years of ownership. So assume you

sell after 5 years and 1 day to save the 3.3% business Tax.

4. Income tax is progressive and calculated as follows:

On the first 100.000 you pay a flat 5% = 5.000 Baht

On 100.001 to 500.000 you pay 10% = 40.000 Baht

On 500.001 to 1.000.000 you pay 20% = 100.000 Baht

On 1.000.001 up to .... you pay 30%

Multiplied by 6 years ( assume 6 year ownership)

On top you have 2% transfer fee (often shared) - on declared value

and 0.5% stamp duty on declared value

It is convoluted and may have errors, so hopefully someone else can assist.

But I think these are the basics.

[AnotherOneAmerican]

About 400k, give or take.

If you have a home loan add 1% of the loan.

Edited August 28, 2013 by AnotherOneAmerican

[JaiLai]

Thanks for the replies, who decides the value of the house? if i cross the right palms at land office can i reduce the value of the house to reduce the costs of the fees, i'm sure this must be possible.

I'm sure when i bought the house from the developer the fees were not even close to what's mentioned above....

Thanks.

[rayongchelsea]

The land department will have a declared value. I don't think trying to persuade them to lower will help.

Depends when you bought but the developer probably paid most. If it is a house don't be surprised if he only declared the land value, also a few years back they reduced the transfer fee to encourage buyers.

I would say minimum 300k.

[JaiLai]

The land department will have a declared value. I don't think trying to persuade them to lower will help.

Depends when you bought but the developer probably paid most. If it is a house don't be surprised if he only declared the land value, also a few years back they reduced the transfer fee to encourage buyers.

I would say minimum 300k.

ok, thanks for that.

IF the developer only declared land value, could i not do the same? I'm 99% sure the transfer cost was split 50/50 with me.

Edited August 28, 2013 by JaiLai

[sfokevin]

The calculation above is for both income tax & transfer fees...

Would not the seller be responsible for 100% of the income tax and the transfer fees split between owner & buyer (Negotiated)?

[topt]

The calculation above is for both income tax & transfer fees...

Would not the seller be responsible for 100% of the income tax and the transfer fees split between owner & buyer (Negotiated)?

This may well be a stupid question so apologies if so. If it is "income tax" and the person selling has no income can they claim it back?

Also you still pay even if you sell for less then you paid for the house - no wonder the prices keep going up.

[rayongchelsea]

The income tax is generally paid by the seller.

But you can get an overall tax assessment from the land department and negotiate 50/50 on the lump sum, not differentiating which tax is which.

Yes, the ability to claim back is there, if Thai, but only to the extent of the personal allowances, so only a part of it is reclaimable.

Can you declare only the land value. If the structure ( house) is not identified on the chanote then the declared value will be less.

[AnotherOneAmerican]

The land department will have a declared value. I don't think trying to persuade them to lower will help.

Depends when you bought but the developer probably paid most. If it is a house don't be surprised if he only declared the land value, also a few years back they reduced the transfer fee to encourage buyers.

I would say minimum 300k.

ok, thanks for that.

IF the developer only declared land value, could i not do the same? I'm 99% sure the transfer cost was split 50/50 with me.

I'm buying a house later this month.

Developer pays all ownership fees (about 7% of total sale price), I pay 2k for my bank representative to attend at the land office and I pay 1% of the home loan (15k) as a fee for the land office to register the loan on the chanote.

Edited August 29, 2013 by AnotherOneAmerican

[JaiLai]

Just got an estimate from land office of 162K, tax and transfer fees.

[rayongchelsea]

Any chance of how they derived at that calculation. What was the declared value?

Good news.

[JaiLai]

Any chance of how they derived at that calculation. What was the declared value?

Good news.

Don't know how they arrived at that number, i will try to find out though.

[cheeryble]

Are folks here suggesting that income tax is held automatically by the LO and anything overpaid is reclaimed?

I've bought condos before never any withholding for the seller more than the transfer taxes, stamp duty etc.

[thainet]

Same topic but a slightly different answer required.

I sold a property 5 years ago and financed 50%, But stipulated in the contract that the taxes I would payafter the 5 year loan payment would be calculated on the fees at that time (ie: 2008) as I remember them being quite low at the time (ie: special concessions put forward by the govt).

The 5 years payment period is now finished and the land must now be transferred probably at least 5 million baht as that was the amount of the registered loan on the Chanoot.

So my 2 questions:

-What would be the approximate payment at todays tax rates

-And more importantly does anyone remember what the tax rates were in 2008, so that I can calculate on those figures also.

many thanks for any replies..tnet

[rayongchelsea]

reduced transfer fee for specified real estate properties from 2% to 0.01% will ended 28 March 2010.

[cheeryble]

Are folks here suggesting that income tax is held automatically by the LO and anything overpaid is reclaimed?

I've bought condos before never any withholding for the seller more than the transfer taxes, stamp duty etc.

RayongChelsea I guess I'm asking you this as you answered the OP by posting about income tax....

ps are you a Chelsea-ite? I was.

Edited September 2, 2013 by cheeryble

[rayongchelsea]

It is in relation to the income tax component of the calculation.

If you are a Thai and are not generating any income, you can make your annual income tax return which would include the amount paid to the land department.

Part of that calculation on the tax return allows for certain personal allowances to be offset against income,basically personnel allowances = the first 100,000 that an individual earns is not taxable, so if you were taxed at say 35% as the highest rate when selling, you should in theory be able to claim 100,000*35% back, that is 35,000.

I was told I could do this by my accountant on behalf of my daughter but never got around to doing so.

Worth it if the property is of high value and you are taxed at the highest rate.

I hope i haven't confused you.

Big Chelsea fan..but nervous at the moment as it looks like Mata might move during the transfer window ( insane, abit like the land department calculations!!)

[cheeryble]

Thankyou Rayong....

FYI the personal allowance means income tax starts at 150,000 not 100,000, so you can deduct more.

(ps not a Chelsea fan but an ex-resident)

OP...you need a different set of transfer tax rates, which I don't have handy or even in my memory, and they are on a sliding (reducing) scale.

The good news is I believe after 5 years you are in the bottom bracket, which used to be about 3% or 3.5%ish plus bits and pieces (they go up to 6%ish plus).

AH!

just saw the OP got his assessment.

162k.....that's about 2.8% of your sale price......that would be because they are not charging you on 6million but the assessed value x the transfer percentage plus the bits.

Sounds about right.

[rayongchelsea]

I think your right if you calculate about 3%-3.5% of declared value after 5 years and about 6% if before you won't be far off.

[JaiLai]

Thankyou Rayong....

FYI the personal allowance means income tax starts at 150,000 not 100,000, so you can deduct more.

(ps not a Chelsea fan but an ex-resident)

OP...you need a different set of transfer tax rates, which I don't have handy or even in my memory, and they are on a sliding (reducing) scale.

The good news is I believe after 5 years you are in the bottom bracket, which used to be about 3% or 3.5%ish plus bits and pieces (they go up to 6%ish plus).

AH!

just saw the OP got his assessment.

162k.....that's about 2.8% of your sale price......that would be because they are not charging you on 6million but the assessed value x the transfer percentage plus the bits.

Sounds about right.

Ok, thanks for your input.

I should 'hopefully' find out in about another 3 weeks when the final visit to LO is made.

[breadbin]

At 6 million, sold house in Feb. Thai name to Thai name transfer costs were 101,000bt.

House and land owned for over 5 years.

[JaiLai]

At 6 million, sold house in Feb. Thai name to Thai name transfer costs were 101,000bt.

House and land owned for over 5 years.

Thanks for the info.