Taxes sell condo ?

[april81]

Hi, i own a condo (freehold on my name) i bought 3 years ago 1.600.000 bahts in Phuket town. Now I would like to sell it may be around 1.800.000 bahts. What taxes and how much I will pay if someone buy it please ? Thanks

[KittenKong]

This link seems to be fairly accurate

http://www.samuiforsale.com/real-estate/condominium-transfer-tax-and-fees.html

though the amount actually charged is up to the local land office. They should be able to give you an idea in advance if you ask them.

How the amounts are split between vendor and buyer is also up to individual discussion.

In your case the main factor is going to be that you have owned the unit less than 5 years, after which time the tax calculation changes.

[Langsuan Man]

and you will be subject to an income tax on the 200,000 THB profit you will make

[april81]

Thanks ok i see...

[meand]

[beachproperty]

and you will be subject to an income tax on the 200,000 THB profit you will make

Am somewhat curious about the the "capital gains" tax (I'm assuming thats what your talking about)

If your not on their books (no ID for the country, no way to track you ) how do they come after you for such taxes after the deal is done and your gone!

Just Curious?

[beachproperty]

I do not understand this table you posted??????

My wife sold a property for 4,500,000 baht (which we paid 2,250,000 baht 4 years earlier....the property was sold about 5 years ago) ...and the tax we paid at the land office was 150,000 baht....

Why was our fees so low???? and nothing was ever paid for capital gains?

[PattayaPhom]

If Phuket is anything like Pattaya or Sattahip, they will have a value per sqm regardless of what you sell for. Expect 5.3%, anything less is a bonus.

[beachproperty]

If Phuket is anything like Pattaya or Sattahip, they will have a value per sqm regardless of what you sell for. Expect 5.3%, anything less is a bonus.

Thanks that makes sense to me....as when we went to the land office (where my wife told me to stay hidden) ....she came out and said if we pay the land official 20,000 baht we will get a discount on our taxes of 100,000 baht....(which I gave her and we got the discount)

[pelagictraveler]

.

P

Sent from my CUBOT C10+ using Thaivisa Connect Thailand mobile app

[garyk]

LOL, stay hidden! What does that tell you! I stay hidden on all matters of money. From renting an apartment to buying tires for the truck. Has saved me literally thousands and thousands of baht.

[meand]

I do not understand this table you posted??????

My wife sold a property for 4,500,000 baht (which we paid 2,250,000 baht 4 years earlier....the property was sold about 5 years ago) ...and the tax we paid at the land office was 150,000 baht....

Why was our fees so low???? and nothing was ever paid for capital gains?

That table is assuming a 10 million baht selling price: 2%(10,000,000)=200,000

3.3% business tax X (10,000,000)=330,000

You would just have to "season accordingly" and use your own selling price

I am not sure how to get that withholding tax based on selling price. I think it is a bit more complicated??

Edited December 11, 2013 by meand

[Langsuan Man]

and you will be subject to an income tax on the 200,000 THB profit you will make

Am somewhat curious about the the "capital gains" tax (I'm assuming thats what your talking about)

If your not on their books (no ID for the country, no way to track you ) how do they come after you for such taxes after the deal is done and your gone!

Just Curious?

The capital gains tax will be collected by the Land Office as part of the transfer process. Remember they know what you paid for the property when you bought it and will know the sale price when you sell it, therefore they are in a position to levy the capital gains tax ( I should not have used the term Income Tax, instead should have used the term capital gains tax, my bad )

[meand]

and you will be subject to an income tax on the 200,000 THB profit you will make

Am somewhat curious about the the "capital gains" tax (I'm assuming thats what your talking about)

If your not on their books (no ID for the country, no way to track you ) how do they come after you for such taxes after the deal is done and your gone!

Just Curious?

The capital gains tax will be collected by the Land Office as part of the transfer process. Remember they know what you paid for the property when you bought it and will know the sale price when you sell it, therefore they are in a position to levy the capital gains tax ( I should not have used the term Income Tax, instead should have used the term capital gains tax, my bad )

A question I have had, is can you simply sell your condo for the same price you bought it for, and the difference between that price and your asking price can just be paid by the buyer for say the furniture. Of course this would only be doable within certain limitations, you could not sell a million baht of furniture for a 2 million baht condo, but I am still curious as to answers to this question. I suppose the buyer may be wary of this as he will get hit with more tax upon selling, but I have wondered about this question, and my condo was bought with no furniture, and a significant portion (about 10%) is in furniture which I feel should not be taxed on sale.

[beachproperty]

and you will be subject to an income tax on the 200,000 THB profit you will make

Am somewhat curious about the the "capital gains" tax (I'm assuming thats what your talking about)

If your not on their books (no ID for the country, no way to track you ) how do they come after you for such taxes after the deal is done and your gone!

Just Curious?

The capital gains tax will be collected by the Land Office as part of the transfer process. Remember they know what you paid for the property when you bought it and will know the sale price when you sell it, therefore they are in a position to levy the capital gains tax ( I should not have used the term Income Tax, instead should have used the term capital gains tax, my bad )

A question I have had, is can you simply sell your condo for the same price you bought it for, and the difference between that price and your asking price can just be paid by the buyer for say the furniture. Of course this would only be doable within certain limitations, you could not sell a million baht of furniture for a 2 million baht condo, but I am still curious as to answers to this question. I suppose the buyer may be wary of this as he will get hit with more tax upon selling, but I have wondered about this question, and my condo was bought with no furniture, and a significant portion (about 10%) is in furniture which I feel should not be taxed on sale.

yes... you can sell the furniture separately ...but remember the land office has a base price (separate for different properties.....something akin to a tax valuation that is updated)....you might be wise to go to the land office and find out what tax value they have on it now.....(In OP's case it may be 1,600,0000 and he therefore you can sell sell the furniture for 200,000 baht.....not saving a whole lot but it is something)

I once bought a new house where the builder did two separate contracts....one for the land and one for the construction of the house (1,000,000 each) ...he did this to save on the transfer taxes which he paid. Fine with me...but everyone might not agree as have to pay more transfer tax when you sell.

Edited December 13, 2013 by beachproperty

[rayongchelsea]

I do not understand this table you posted??????

My wife sold a property for 4,500,000 baht (which we paid 2,250,000 baht 4 years earlier....the property was sold about 5 years ago) ...and the tax we paid at the land office was 150,000 baht....

Why was our fees so low???? and nothing was ever paid for capital gains?

That table is assuming a 10 million baht selling price: 2%(10,000,000)=200,000

3.3% business tax X (10,000,000)=330,000

You would just have to "season accordingly" and use your own selling price

I am not sure how to get that withholding tax based on selling price. I think it is a bit more complicated??

Can you explain why the withholding tax increase each year if the price stays the same..by your chart it becomes more expensive to hold a property each and every year after the 6th year!

[rayongchelsea]

Ok. I have answered my own query on the withholding tax calculation.

The following is an example of my friend who sold a condo at 13m declared value 11m.

Very convoluted..

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.

Ownership = 6 years Taxable income 40% of let's say 11.000.000 Baht original value

is 4.4 Mio divided by 6 years = taxable income per year of 733.333 Baht.

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%

Thus on 733.333 Baht you pay 5.000 + 40.000 + (233.333 x 20% =46.666) =

91.333 Baht per year in income tax

Multiplied by 6 years again totals about 550.000 Baht income tax due upon sale

regardless of how much you sell it for - even if you sell at a loss!!!

[april81]

Another question please :

Is it to the buyer or the seller to pay the taxes and eventually the comissions to the property agency ? Or may be 50/50 ?

Thanks again !!!

[beachproperty]

Another question please :

Is it to the buyer or the seller to pay the taxes and eventually the comissions to the property agency ? Or may be 50/50 ?

Thanks again !!!

As in all things Thai,,,,,its negotiable!

[isawasnake]

Ok. I have answered my own query on the withholding tax calculation. The following is an example of my friend who sold a condo at 13m declared value 11m. Very convoluted.. 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. Ownership = 6 years Taxable income 40% of let's say 11.000.000 Baht original value is 4.4 Mio divided by 6 years = taxable income per year of 733.333 Baht. 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% Thus on 733.333 Baht you pay 5.000 + 40.000 + (233.333 x 20% =46.666) = 91.333 Baht per year in income tax Multiplied by 6 years again totals about 550.000 Baht income tax due upon sale regardless of how much you sell it for - even if you sell at a loss!!!

Yeah, I had read about this calculation once a while back, and it was so confusing, and I feel excessive, that I chose to suppress it deeply

And tax on capital gains in the Thai stock market are a very unconfusing 0%.

Guess where the bulk of my money is

[april81]

Another question please :

Is it to the buyer or the seller to pay the taxes and eventually the comissions to the property agency ? Or may be 50/50 ?

Thanks again !!!

As in all things Thai,,,,,its negotiable!

Ok but usually who pay ?

[Langsuan Man]

Another question please :

Is it to the buyer or the seller to pay the taxes and eventually the comissions to the property agency ? Or may be 50/50 ?

Thanks again !!!

As in all things Thai,,,,,its negotiable!

Ok but usually who pay ?

There is no set rule, in most cases it is paid 50 / 50 but YMMV. If the seller refuses to pay then you have the option to pay or kill the sale. If you refuse to pay then the seller can pay and refuse to sell to you. We can't make it any clearer

[april81]

Ok Langsuan Man, thanks for your answer

[srinibashdhal]

I will refer you some of good buyers, who wants to buy your Condo. What is the fix price?