Can anyone confirm the the Tax on property sales has been reduced to 0.01%?

[n210mp]

Fed up of the stress and also having to pay Thai Ltd company returns every year I want to transfer the house from our Thai LTD company to my Mrs

I heard that the Thai Government has to day reduced the tax on all the fees involved to 0.01% making a transfer of the property viable for this pensioner

I would appreciate any information

There was an old archived thread that basically sounds as though they are now reincarnating this tax reduction to get the property market moving again (if true) this is a good bit of news

http://www.thaivisa.com/forum/topic/172838-real-estate-taxes-slashed/page-2

Thanks for any info

[wpcoe]

I had read this web page and asked my real estate agent, and he said, yes, it's correct that transfer fee has been temporarily reduced from 2.0% to 0.01%.

[ezzra]

Yes, but only for 6 months and only for brand new properties bought from the developers

fist hand, no second hand properties, it's apply to only bricks and mortar, no land....

[VIPinthailand]

Because nobody want buy these shoe boxes?

[wooloomooloo]

Because nobody want buy these shoe boxes?

You do talk some waffle, VIP.

Ignore at your leisure, Harv.

[Searat7]

I also read that it applies to places 3,000,000 b or less.

[ozyjon]

I remember as a youngster learning the golden rules of property buying/investing.

1,Buy in an area you are familiar with

2,Buy in a radius of 10km from where you live

3 Invest where investment is being made

4.Don't get investment advice from your drinking mates.

There are many more rules, just research to find out.

***********Why do i say this***********************

It seems that to many that come to Thailand, they see

this country as an ''El dorado'' but the streets are not

paved in gold, and we as westerners -have no rights-

yet many still come and try ignoring the rules then they

complain how bad they are being treated,, all i can say

is your gonads are much bigger than mine, and good

luck for having a go.

[Langsuan Man]

This is to spur sales, not to allow farangs to divest themselves from previously purchased property in a company name

If you want to do that be prepared to pay anywhere in the neighborhood of 50,000 THB for a lawyer or accountant to close out a company for you (some may charge more, some may charge less)

but don't think that the Land Office is going to allow you to transfer to your wife for free, you will pay what they evaluate the property as being worth

Just be grateful that this government did not pass the proposed gift and inheritance tax act or you would be paying two taxes; transfer and gift

[wpcoe]

Yes, but only for 6 months and only for brand new properties bought from the developers

fist hand, no second hand properties, it's apply to only bricks and mortar, no land....

Can you provide a link/source for the reduction only applying to new properties?

[NickJ]

Cant the company sell the property for a decreased value?.....Cant the company go inactive.

[n210mp]

This is to spur sales, not to allow farangs to divest themselves from previously purchased property in a company name

If you want to do that be prepared to pay anywhere in the neighborhood of 50,000 THB for a lawyer or accountant to close out a company for you (some may charge more, some may charge less)

but don't think that the Land Office is going to allow you to transfer to your wife for free, you will pay what they evaluate the property as being worth

Just be grateful that this government did not pass the proposed gift and inheritance tax act or you would be paying two taxes; transfer and gift

You take far too much for granted and assume even more so

Your opinions are not accurate and in any event please do your research before making comment in such a pompous and self opinionated manner

Because of your sanctimonious attitude I will not enlighten you as to any of my genuine and sensible reasons behind my thread and please read my thread again maybe another three times and possibly then you will understand then that your response was not either helpful, constructive or courteous.

Also I object to you assuming that I am a White foreigner but then again you assume much too much anyway and I dont appreciate that you, presumably of European descent should be referring to people on her as Farang

[n210mp]

Cant the company sell the property for a decreased value?.....Cant the company go inactive.

Well yes the company can give away the property but it wouldnt detract the bods (district valuers) within the land office from assessing a transfer value and ergo a tax on the gifted transaction

[n210mp]

I remember as a youngster learning the golden rules of property buying/investing.

1,Buy in an area you are familiar with

2,Buy in a radius of 10km from where you live

3 Invest where investment is being made

4.Don't get investment advice from your drinking mates.

There are many more rules, just research to find out.

***********Why do i say this***********************

It seems that to many that come to Thailand, they see

this country as an ''El dorado'' but the streets are not

paved in gold, and we as westerners -have no rights-

yet many still come and try ignoring the rules then they

complain how bad they are being treated,, all i can say

is your gonads are much bigger than mine, and good

luck for having a go.

Very sound advice ozyjon but what has it to do with the question in the thread?

[n210mp]

duplicate post

Edited October 15, 2015 by n210mp

[n210mp]

Yes, but only for 6 months and only for brand new properties bought from the developers

fist hand, no second hand properties, it's apply to only bricks and mortar, no land....

Can you provide a link/source for the reduction only applying to new properties?

Yes I too would like to know where you read that information ezzra

[n210mp]

I also read that it applies to places 3,000,000 b or less.

Could you say where you read this info please?

[n210mp]

Apart from posters who are obviously socially dysfunctional not venting their unhappy lives within these forums it would help enormously if posters who relate valid information could please substantiate their information through links to where they heard or read the information they are offering.

[wooloomooloo]

Wouldn't hurt to pose the question in 'Ask the Lawyer', Harv. It's free, after all.

And, yes, to your PM. Hope you and the good lady wife are keeping well. Just got back from HH and early night on the cards, hopefully.

[blackcab]

I remember as a youngster learning the golden rules of property buying/investing.

1,Buy in an area you are familiar with

2,Buy in a radius of 10km from where you live

3 Invest where investment is being made

4.Don't get investment advice from your drinking mates.

There are many more rules, just research to find out.

***********Why do i say this***********************

It seems that to many that come to Thailand, they see

this country as an ''El dorado'' but the streets are not

paved in gold, and we as westerners -have no rights-

yet many still come and try ignoring the rules then they

complain how bad they are being treated,, all i can say

is your gonads are much bigger than mine, and good

luck for having a go.

Some of the streets are not even paved.

Edited October 15, 2015 by blackcab

[Langsuan Man]

This is to spur sales, not to allow farangs to divest themselves from previously purchased property in a company name

If you want to do that be prepared to pay anywhere in the neighborhood of 50,000 THB for a lawyer or accountant to close out a company for you (some may charge more, some may charge less)

but don't think that the Land Office is going to allow you to transfer to your wife for free, you will pay what they evaluate the property as being worth

Just be grateful that this government did not pass the proposed gift and inheritance tax act or you would be paying two taxes; transfer and gift

You take far too much for granted and assume even more so

Your opinions are not accurate and in any event please do your research before making comment in such a pompous and self opinionated manner

Because of your sanctimonious attitude I will not enlighten you as to any of my genuine and sensible reasons behind my thread and please read my thread again maybe another three times and possibly then you will understand then that your response was not either helpful, constructive or courteous.

Also I object to you assuming that I am a White foreigner but then again you assume much too much anyway and I dont appreciate that you, presumably of European descent should be referring to people on her as Farang

You asked and the title asked about the " rumoured " tax reduction scheme. All I did was tell you NO and why it doesn't apply to property currently in a company name and why

Nothing was taken for granted or assumed. The facts about company closing are accurate and I am sorry that you don't like the answer I gave. But the answer is based entirely on what you posted and the commercial code that allows companies to exist

[wpcoe]

I also read that it applies to places 3,000,000 b or less.

Could you say where you read this info please?

The web page I linked to above mentions:

"Buyers of homes costing less than 3 million baht have an extra incentive as 20% of the price tag will be tax deductible for five years, starting Dec 31."

I wonder (assuming that info on that web page is correct...) if that got confused with the reduction in transfer fees. As I read it, the B3m price level deals with a totally different part of the Tuesday changes, not anything to do with the reduction in transfer fees.

PS: Googling "housing transfer fee to 0.01% from 2%" and restricting the search to the past week brings up a link to an article at a prominent Thai newspaper (to which we cannot link here on ThaiVisa) stating pretty much the same thing as the article I linked to above.

Edited October 15, 2015 by wpcoe

[wpcoe]

And then, there's this: Thai commercial banks: Govt measures to boost property sector.

There appears to be three discrete parts of Tuesdays act:

• the allocation of 10-billion baht soft loan through the Government Housing Bank
• reduction of house transfer fees from two percent of the estimated cost to 0.01 percent
• tax deduction for customers buying houses worth up to three million baht

And again it appears that the B3m price level only applies to a tax deduction.

[jacko45k]

This is to spur sales, not to allow farangs to divest themselves from previously purchased property in a company name

If you want to do that be prepared to pay anywhere in the neighborhood of 50,000 THB for a lawyer or accountant to close out a company for you (some may charge more, some may charge less)

but don't think that the Land Office is going to allow you to transfer to your wife for free, you will pay what they evaluate the property as being worth

Just be grateful that this government did not pass the proposed gift and inheritance tax act or you would be paying two taxes; transfer and gift

You take far too much for granted and assume even more so

Your opinions are not accurate and in any event please do your research before making comment in such a pompous and self opinionated manner

Because of your sanctimonious attitude I will not enlighten you as to any of my genuine and sensible reasons behind my thread and please read my thread again maybe another three times and possibly then you will understand then that your response was not either helpful, constructive or courteous.

Also I object to you assuming that I am a White foreigner but then again you assume much too much anyway and I dont appreciate that you, presumably of European descent should be referring to people on her as Farang

I think you over-reacted there, he simply put out a cynical gripe, and I thought, with a few changes ('farang' to 'foreigner', you will pay a percentage of what it is evaluated to be worth, and perhaps drop the irrelevant reference to a gift tax, which does not exist), it would be useful. Strange you seem to be asking for information then tell everyone you won't enlighten others. Doubly so as your original question applies to me, and likely many more and is of considerable interest..

I too would like to divest myself of the limited company shackle, although I worry that once in a Thai name the property could be harder to sell. That and the 'usual' worries shall we say. Is the 50,000 baht estimate of lawyer/accountant fees a bad estimate?

Farang isn't a derogatory term but it does get overused.

Edited October 15, 2015 by jacko45k

[cauldlad]

I bought a house 18 months ago from an English guy. It was in a company name which I wasn't interested in as I have a Thai wife.

The lawyer we both used said he would charge the seller 30.000 bt to close the company down.

[n210mp]

If you close a Thai company down you will still have to dispose of any assets, if the assets, a house in this case were to be transferred to anyone or even given as a gift to anyone it would still attract the transfer tax as per their system, in the case of the transfer of house and land this would be 3 x charges

With the reduction of these charges from the current rate to 0.01% X 3 , this make for a massive reduction in the costs of any transfer

After the transfer of the main assets of the company there is another option in that the company could be either sold for a nominal price or even gifted away

There are more options available than just going to at Thai lawyer and paying through the nose to close a company that could sell and mitigate any costs

In our case I did not want or need a Thai LTD company but because the house we wanted could only be bought as an asset of a Thai LTD company we had Hobsons choice

My wife is the main shareholder, my insurance man and close friend is a 1% shareholder and I have 48%

At the time of arrival in this country I thought as many do that maybe I would start some kind of business and that the company may well come in handy in the future.

however after consideration Have concluded that my country of preferred residence, whilst being a pleasant enough place to live or retire is not the best place to make any money, I will say no more on that aspect.

As far as transferring assets to a director or shareholder (My wife) of the Thai Ltd company I am vaguely aware that it is not possible (legal) for the company to transfer asset like an house and land and yes I know that there are ways around this!

In conclusion my OP was fully loaded in that I was hoping that someone would bring up the points i have made in this last post

Far from divesting myself of land or property I wish to make my wife's future as secure as possible and transferring out of the Thai Ltd company fiasco in my opinion is a good idea, mainly because of the yearly costs of returns that are not in our case justified because as I said earlier we never really needed a Ltd company.

[BkkLifeA]

Strange no-one knows this..., with so many members....?

Okey my missus went to the Land department office in Pattaya yesterday, and one of the staff, told her that the Transfer Fee is indeed lowered to 0.01% (from 2%) for all. Only exception is empty land, if the land is sold as so, if its sold for development also the reduced fee applies.

Staff gave her a couple of A-4's in Thai with full explanation.

(other taxes like Stamp Duty,Specific Business Tax & Withholding Tax are unchanged)

Edited October 29, 2015 by BkkLifeA

[RAZZELL]

Strange no-one knows this..., with so many members....?

Okey my missus went to the Land department office in Pattaya yesterday, and one of the staff, told her that the Transfer Fee is indeed lowered to 0.01% (from 2%) for all. Only exception is empty land, if the land is sold as so, if its sold for development also the reduced fee applies.

Staff gave her a couple of A-4's in Thai with full explanation.

(other taxes like Stamp Duty,Specific Business Tax & Withholding Tax are unchanged)

Are you sure this includes "second hand houses" as well?

From what I have read I thought it only applied to new builds?

If anyone could post a link (apart from BKK Post Newspaper) that explains it all it would be much appreciated.

RAZZ

Edited October 30, 2015 by RAZZELL

[smutcakes]

I don't think this has been gazetted yet, so i am not sure it can happen.

[BkkLifeA]

To clarify, the woman my gf got to talk with, is the one sitting in the back in the middle (at the land department of Pattaya) and i think its the head of the ground floor operation. My gf got 10 pages in Thai language she had to copy with full text explanation. (i have it here and i can eventually upload it) but its in thai. And i think not all are related to the "transfer Fee" reduction. Also the other stuff like mortgage reduction is written down (i think).....

Note: from the 4 different taxes/fees only the Transfer fee is changed. Stamp Duty (0.5%), Business Tax (3.3%) & Witholding Tax are not, but those last 3 are "normally" taxes/fees the seller has to absorb.

Overall you save around 20-30% based on the fact that most people do a 50/50 share of total costs at the land department.

Edited November 2, 2015 by BkkLifeA