Tax advice on house and land sale

[AlfGarnett]

Hi,

Would like some practical advice on Taxes to be paid on a Land and House sale please.

This is not about anything at the land office as buyer pays all.

What puzzles me is this, once the deal has gone through the company will show a profit of 7 million, which is taxable despite losing loads that was spent building the house.

Tax payable is about 680,000 baht. I asked if I could spend the money on more Land to avoid the tax. Answer no.

Could I not just abandon the company. No

Once the tax bill is paid I no longer need the company, but to close it I have been quoted 770,000 baht !!! Do I just leave it dormant ? Seems that I have to pay tax twice.

Can someone shed some light on a cost effective way to manage the tax issues.

Thanks in advance.

At.

[AlfGarnett]

Buyer is a Thai and not interested in buying the Company unfortunately, hence the headache. Have suggested this but they are not keen at all.

If I could just pay the tax, I would not mind, it's this additional nearly 800,000 to close the company I worry about.

[dotpoom]

When I closed my company because I sold to a Thai person, I just had to pay up to close the company.....we did put the sale price at about the same as the purchase price of the house that was recorded in the books at the time of opening the company.

[BigFun]

To close a company costs around 15,000 if I remember correctly. The extra is probably the taxes that should be paid before closing it. Yes you could easily just abandon it without problems, many do. Do you not have the purchase recorded in receipts, etc? This should then lower your tax liability. Also I do not see why you cannot just buy a new property thus lowering this year's operating profit. Unfortunately unless the original purchase/build is not recorded then you could well need to pay even more tax on a second sale. If your accountant makes no suggestions....change accountant...good luck

[SOUTHERNSTAR]

Buyer is a Thai and not interested in buying the Company unfortunately, hence the headache. Have suggested this but they are not keen at all.

If I could just pay the tax, I would not mind, it's this additional nearly 800,000 to close the company I worry about.

This is how Thai's do it: adjust the selling price reflected at the Land office and do a cash transaction. This will decrease the Land tax at the Land office and the amount that above board flows into the Company that will become taxable in the company's hands. The balance of the amount between the Land office amount and the real selling price don't go through the company's bank account. Not legal but that is how the Thai's avoid high taxes.

[falang07]

yes, indeed not legal and since this is related to a house owned by a company, I doubt anyone would risk spending time in a jail