Reality check! Is assessed price of land always used to determine transfer fee and witholding tax?

[Khun Jean]

I am currently selling a piece of land and doing my calculations for what the buyer and seller have to pay.

We will split the cost according what is the norm.

The buyer pays the transfer fee, the seller pays stamp duty and withholding tax. There is no special business tax in this case as the land is in our possession for six years.

According to information on the internet (lawyer, Thai government calculator etc) the transfer fee and withholding tax are based on the real selling price.

The stamp duty or Special business tax is based on the value assessed by the land office.

 

Is this always the case, or can the official deviate from this? Would that be allowed?

 

I checked the receipts from transactions done in the past and it seems that the above was always followed. 

Did any of you experienced differently?

 

 

Edited April 10, 2017 by Khun Jean

[khunPer]

To my experience it's different from area-to-area, what is the norm at a Land Office (I've been transferring land in two different provinces, and with different procedures). Some places all has been done based the Land Office's assessed value, other places use the real and documented sales-price.

 

If you have a local lawyer or real-estate agent as part of the transfer, they should know; or if you has a Thai-partner, let your partner ask at the local Land Office, how the do it...

[Sophon]

Transfer fee is based on assessed value.

Special business tax based on whichever is higher of assessed value or sale price.

Stamp duty is based on sale price.

Withholding tax is based on assessed value (however, if seller is a business it will be based on whichever is higher of assessed value or sale price).

 

Above is taken from here.

 

Sophon

[abab]

Yes, not always exactly !

 

 

[Khun Jean]

As Sophon mentioned this is what i experienced until now and is also what can be found on lawyers/government websites.

 

Is the official at the land office bound by these rules? Meaning if they use the real sale value to calculate the transfer fee, could you then correct them (ask for a manager)?

Any official (Thai) rules that can be printed and bring along?

Same for the stamp duty/withholding tax. Is it a law or up to the official?

 

 

 

[nickcar]

My understanding is that most Thais will agree two contracts of sale, one the true contract and one for the land department. Further i have heard that the no bussiness tax if the land has been owned for more than 5 years has been cancelled and full tax is always payable, but this may apply to land owned by companies only. Anybody can confirm this?