Transfer Fee and Tax Calculation

[opporna]

I'm buying a condo for about 800,000 baht in Jomtien. I have attempted to find out approximate tax and transfer fees both on Google and by searching here on Thaivisa.

The current owner is an expat and so am I. The condo is part of the foreign quota, obviously. So far, it appears that there will be a 2% transfer fee plus a 0.5% stamp duty, giving 2.5% of 800,000 (assuming the assessed value is the same as my actual cost) or 20,000 baht.

In addition, the condo will have a withholding tax as I understand it. Here's where the calculation is not clear to me. The current owner bought the condo about 5 years ago from a friend, but paid in installments and the chanote was only transferred into the current owner's name a couple months ago.

Given this situation, does anyone know how to calculate the withholding tax? Thanks in advance for any help.

opporna

[blackcab]

Using the valuation you provided, your withholding tax can be calculated as:

800,000 X 0.08 (deduction factor) = 64,000

64,000 ÷ 1 (years owned) = 64,000

This is the net taxable income per year of ownership and is used as the basis for the progressive income tax scale.

In this case, the calculation for net taxable income is 5% of 64,000, giving a witholding tax of 3,200 baht.

The "years owned" is derived from the date of transfer on the Chanote. In this case, it is a good thing, as witholding tax is payable for each year of ownership (up to a maximum of 8 years). If the property had been owned 5 years, the witholding tax would be 203,591.40 baht.

800,000 × 0.35 = 2,285,714.28

2,285,714.28 ÷ 5 = 457,142.85

5,000 + 35,714.28 = 40,714.28

40,714.28 × 5 = 203,591.40

There will also be transfer tax of 2% of the property's assessed value and Specific Business Tax of 3.3% (as the property has been sold within 5 years of aquisition). There is no Stamp Duty payable as SBT is payable.

[opporna]

Thanks for your reply.

I think you got some numbers wrong there.

800,000 × 0.35 is not equal to 2,285,714.28

Edited July 20, 2015 by opporna

[blackcab]

Thanks for the pointer! Re-done:

800,000 × 0.35 = 280,000

289,000 ÷ 5 = 56,0000

5% = 2,800

2,800 × 5 = 14,000