Business Tax of 3.3% - House via company

[nabbie]

One question please,

 

I and my Thai wife have already possessed it well over 5 years and its title deeds is in the name of the company.

 

If we decide to sell it, can you please confirm us that we must pay or not?

 

Transfer tax:   Yes - right?

 

Stamp tax:    Depending on Business Tax.

 

Business tax: Not sure - Does the "Less or Over 5 years" condition apply for both Individual owner and company owner?   

 

Withholding tax: Yes - right?

 

Appreciate any quick answers, thanks.

[KittenKong]

It all depends on whether your company sells the house, or whether you sell the company (along with the house it owns).

[JesseFrank]

The exempt of business tax if property owned more than 5 year, applies only to individual. Companies always pay business tax.

 

Also keep in mind that some withholding tax will be charged at the land office, but when you file your yearly balance sheet there will be extra withholding tax to be paid since the land department only charges a minimal amount and doesn't know your yearly taxable income.

 

Edit to add :

 

http://lawonline.weebly.com/property-transfer-tax-and-fee.html

 

The sale/transfer is not subject to the specific business tax if;
1.      Selling property by an individual who has acquired the property for more than 5 years.
2.      Selling property to the government under the expropriation law.
3.      Selling inherited property.
4.      Selling property by an individual who has his name recorded in the house registration book for not less than 1 year.
5.      Transferring property as gift to a child but exclude adopted child.
6.      Transferring property by inheritance to heirs.
7.      Transferring property as gift to the government.
8.      Exchange property with the government’s property.

Edited August 14, 2014 by JesseFrank

[nabbie]

It all depends on whether your company sells the house, or whether you sell the company (along with the house it owns).

 

Company sells the house so should Business tax be excluded or not? 
 

[nabbie]

The exempt of business tax if property owned more than 5 year, applies only to individual. Companies always pay business tax.

 

Also keep in mind that some withholding tax will be charged at the land office, but when you file your yearly balance sheet there will be extra withholding tax to be paid since the land department only charges a minimal amount and doesn't know your yearly taxable income.

 

Ok, thanks. If company wish to transfer the title deeds from company name to child's name, then business tax is not required. Is that correct?  If so, is the legal agreement necessary to represent that child? 

[nabbie]

 

It all depends on whether your company sells the house, or whether you sell the company (along with the house it owns).

 

Company sells the house so should Business tax be excluded or not? 
 

 

 

In other words, the reason aims to dissolve the company after transfer completion.
 

[JesseFrank]

 

The exempt of business tax if property owned more than 5 year, applies only to individual. Companies always pay business tax.

 

Also keep in mind that some withholding tax will be charged at the land office, but when you file your yearly balance sheet there will be extra withholding tax to be paid since the land department only charges a minimal amount and doesn't know your yearly taxable income.

 

Ok, thanks. If company wish to transfer the title deeds from company name to child's name, then business tax is not required. Is that correct?  If so, is the legal agreement necessary to represent that child? 

 

 

If company sells house business tax is applicable, regardless of how long the company owned the property.

 

About the child, I think the clue is in the last 3 words.

 

5.      Transferring property as gift to a child but exclude adopted child.

 

A company can't have a child, only an individual can have a child.

 

Anyway, any lawyer will be able to answer your question, at no charge.

Edited August 14, 2014 by JesseFrank

[nabbie]

 

About the child, I think the clue is in the last 3 words.

 

5.      Transferring property as gift to a child but exclude adopted child.

 

A company can't have a child, only an individual can have a child.

 

Anyway, any lawyer will be able to answer your question, at no charge.

 

 

Thanks for reinforcing my understanding and I am currently in touch with lawyer.