Taking money out from condo resale problem? (if the seller under report the value, will it cause any problem repatriating money out when you resell?

[dugrasu]

When buying a condo in Thailand, if the seller under reports the value to the land department, will it cause any problem repatriating money out when a foreign buyer resell?

 

I'm an expat who plans to purchase a condo through resale within 1 year.  I just want to prepare myself as a friend of mine told me this is quite common in Thailand.   Hypothetically, let's say

1. I want to buy a 10mil condo

2. Seller agree to sell at 10mil and sign contract

3. I transfer 10mil equivalent of foreign currency into Thailand and get FET from bank

4. Seller wants to under report the condo as 8 mil to pay less tax

 

Even though I don't like this dodgy practice, let's say I  agreed to this arrangement and purchased this condo.   My question is then, if I were to resell this condo for net 12 mil in 3 years. 

 

1. Will this affect my ability to repatriate 12 mil out of Thailand?   Will I have any problem sending the money out?   (if I have the original FET) 

 

2. When I resell, would I even need to show the land department a copy of tax receipt from previous transaction for 8 mil as opposed to 10mil by previous seller, previous purchase agreement between me and the previous owner.....   or just the new purchase agreement between me and the new buyer and the tax receipt from this new transaction only? 

 

3.  Other than the special business tax of 3.3%, will I be charged additional withholding tax /capital gain tax /income tax due to under reporting by the previous seller? 

12-8mil = 4 mil   vs. 12-10mil = 2mil  taxable income?

 

 

If you or know of someone with similar experience or are knowledgeable about this subject, please share with me.  Any help will be greatly appreciated.

 

Thank you!

TJ

 

[Peterw42]

I dont have a definitive answer, but I think you will find the land office now put realistic values on properties. To stop the undervalueing.

The land office will probably say the condo is worth 10 mill. (not sure how that works in a falling market)

[trogers]

Would not your FET submitted to the Land office shows the amount of Bt10m even should you under declare?

[CRUNCHER]

What is recorded when you buy is not an issue.

 

If you understate the amount when you re-sell you will only be able to remit out the amount of your re-sale recorded at the lands office.  Basically you only pay tax etc on the recorded value and you can only remit out what you have paid tax on.