Fees and taxes for selling a condo

[usernamex]

Hi all,

Can anyone explain to me clearly all the fees/taxes that must be paid when selling a condo. I realize that some of these fees can be negotiated with the buyer to split, but I'd just like to know what they all are and the approx percentage. I have owned the condo for just a few months (I bought it new off the developer). For simplicty's sake, if I sell it for 10 million Baht, what would be the approx total fees/taxes I would have to pay (except for the 3% real estate commission fee.) Is there a capital gains tax as well?

Thanks in advance!

[debeers]

- Transfer fee of 2% (negotiate to split this with buyer)

- Business tax of 3.3%

- Then capital gains on any increase in value. The land office will have an assesed price for your property which is used to calculate this.

The real estate agent you use will be able to give you the exact numbers.

[usernamex]

Thanks for your reply!

[sotsira]

All in all the 3 taxes amount to about 7% of the sale price.

[trajan]

done this a few times (both purchase and sale)...

a. govt transfer fee of 2% of assessed value of property (usually less than actual purchase price) (can negotiate who pays)

b. income withholding tax on seller deducted from purchase price and paid to revenue dept (progressive rate formula)

c. 3.3% specific business tax (SBT) of higher of actual purchase price or assessed value IF owned less than 5 years OR registered in household registration book less than 1 year..(IF owned longer, this does not 3.3% SBT does not apply, but then stamp duty applies) (can negotiate who actually pays)

d. stamp duty of 0.5% of HIGHER of actual purchase price or assess value (BUT this stamp duty waived IF SBT above is paid) (can negotiate who actually pays)

e. (if applicable only) real estate brokers commission (usually about 3% of actual selling price)

(if you are buying new from a condo developer, don't forget electricity meter price, sinking fund amount and first years common area fee)

[Will2011]

done this a few times (both purchase and sale)...

a. govt transfer fee of 2% of assessed value of property (usually less than actual purchase price) (can negotiate who pays)

b. income withholding tax on seller deducted from purchase price and paid to revenue dept (progressive rate formula)

c. 3.3% specific business tax (SBT) of higher of actual purchase price or assessed value IF owned less than 5 years OR registered in household registration book less than 1 year..(IF owned longer, this does not 3.3% SBT does not apply, but then stamp duty applies) (can negotiate who actually pays)

d. stamp duty of 0.5% of HIGHER of actual purchase price or assess value (BUT this stamp duty waived IF SBT above is paid) (can negotiate who actually pays)

e. (if applicable only) real estate brokers commission (usually about 3% of actual selling price)

(if you are buying new from a condo developer, don't forget electricity meter price, sinking fund amount and first years common area fee)

Thanks for educating us, trajan.

Here are some questions related to your reply that I need to ask to grasp the concept:

- b. What does the income withholding tax on seller mean? Is it the tax on transaction profit? For example, I initially buy for 3 mil thb, I then sell for 3.5 mil. So is it those THB 500,000 that are taxable under income withholding tax on seller? If yes, what would be the rate?

- c. What's the difference between 5-year owner and 1-year household registration book? What does "owning" mean under Thailand law? For example, if I buy an off plan unit, do I own it even though it is not built?

- P.S.. Does a registered company in Thailand pay all those taxes or additional taxes as well?

[sotsira]

Have a look at this link:

http://www.doingbusinessthailand.com/blog-thailand/doing-business-in-thailand/thailand-real-estate-doing-business-in-thailand/selling-a-condominium-how-is-the-withholding-tax-calculated.html

[rawhod]

Try this tax calculator...

http://www.acuterealty.com/calculator.asp

and for examples...

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

[siamtwin]

This tax system assumes property prices only increase. If you sell for a loss, you still have to pay a tax based on the assessed value.

Sent from my iPad using Thaivisa Connect Thailand

[Will2011]

Thanks for the links. I read the examples and trying entering the same data provided, but the calculator shows a completely different withholding tax amount.

Could you please give another example perhaps? I'd appreciate that.