Company owned house - City Hall TAX

[Cricky]

I have owned a house for about 10 years which me and my family are living in, we do not run a business from this house. The house is located in Pattaya, I recently received a bill from city hall, I haven't seen this type of invoice before so I presented it to my Lawyer, they also do my yearly book keeping. It turns out it is an invoice from City Hall which has been backdated for 7 years, they are demanding 7,500 baht per year (total over 50,000 baht). I have spoken to friends within this housing estate and they have not received any such notice.

Anyone out there having similar issues?

[KittenKong]

2 hours ago, rickjza said:

I have spoken to friends within this housing estate and they have not received any such notice.

 

Are your friends' houses also in company name?

[stanleycoin]

Think the clue is,  house in company name.

 

Reckon there will be more of this type of tax and charges in the future,   for those that have circumvented

the law with shell company named properties.

 

Good luck with that one boys.

 

 

[topt]

There was a thread here stated in June about this - may not be only company names.......

 

https://www.thaivisa.com/forum/topic/988264-property-taxes/

[Naam]

4 hours ago, stanleycoin said:

Think the clue is,  house in company name.

Reckon there will be more of this type of tax and charges in the future,   for those that have circumvented

the law with shell company named properties.

Good luck with that one boys.

 

the future looks indeed horrible with this tax levied. 7,500 Baht per annum is a princely sum and i'm not sure whether i could afford it. but wait... that's 200 Dollars and the equivalent of one week property taxes we paid for our former home in Florida.

[stanleycoin]

1 hour ago, Naam said:

the future looks indeed horrible with this tax levied. 7,500 Baht per annum is a princely sum and i'm not sure whether i could afford it. but wait... that's 200 Dollars and the equivalent of one week property taxes we paid for our former home in Florida.

Im sure you can afford it.

In the future when more tax gets imposed on the company name boys.

and you start moaning,    i will remind you of your reply

Have a nice day

 

 

 

[chickenslegs]

1 hour ago, Naam said:

the future looks indeed horrible with this tax levied. 7,500 Baht per annum is a princely sum and i'm not sure whether i could afford it. but wait... that's 200 Dollars and the equivalent of one week property taxes we paid for our former home in Florida.

If, in Florida, you had been presented with an unexpected bill for 7 years of property taxes (at your stated rate of 200 USD per week, that would be  around 73,000 USD - or 2.5 million Baht) you might not have been too happy.

[KittenKong]

6 minutes ago, chickenslegs said:

If, in Florida, you had been presented with an unexpected bill for 7 years of property taxes (at your stated rate of 200 USD per week, that would be  around 73,000 USD - or 2.5 million Baht) you might not have been too happy.

 

Do you really think that the Florida authorities would be incompetent enough not to issue tax demands for 7 years? I dont.

[chickenslegs]

4 minutes ago, KittenKong said:

 

Do you really think that the Florida authorities would be incompetent enough not to issue tax demands for 7 years? I dont.

Agreed. That is why I said "If".

 

The point I was making is that the amount is relative. 50,000 baht is a good lump of money in Thailand - not to be scoffed at.

[Naam]

12 hours ago, chickenslegs said:

14 hours ago, Naam said:

the future looks indeed horrible with this tax levied. 7,500 Baht per annum is a princely sum and i'm not sure whether i could afford it. but wait... that's 200 Dollars and the equivalent of one week property taxes we paid for our former home in Florida.

If, in Florida, you had been presented with an unexpected bill for 7 years of property taxes (at your stated rate of 200 USD per week, that would be  around 73,000 USD - or 2.5 million Baht) you might not have been too happy.

i just had a look at old spreadsheets and added the property taxes we paid during the last 7 years of our stay in Florida. the total amount is slightly less than $73k but if we had not paid and the taxman asked $73k for back taxes without an additional harsh fine and without prison time we would have been very happy.

[Naam]

12 hours ago, chickenslegs said:

12 hours ago, KittenKong said:

Do you really think that the Florida authorities would be incompetent enough not to issue tax demands for 7 years? I dont.

Agreed. That is why I said "If".

The point I was making is that the amount is relative. 50,000 baht is a good lump of money in Thailand - not to be scoffed at.

50k Baht property tax is peanuts for people who save an "exponential multiple" on income tax living in Thailand. it's always the bottom line that counts. we also got last year a retroactive demand for three years for public sewage fees (1,400 Baht per annum). ironically we are not connected to any sewage line but have 4 septic tanks.

 

but i think it's only fair if some property tax and even some income tax is levied... as long it is not the outrageous 45% income tax plus 5.5% solidarity tax plus 19% VAT on all expenditure the greedy taxman of my home country demands from its residents.

[champers]

Solidarity tax? Tax authorities have limitless imagination when it comes to finding something to tax.

[tropo]

On 8/4/2017 at 3:46 PM, stanleycoin said:

Think the clue is,  house in company name.

 

Reckon there will be more of this type of tax and charges in the future,   for those that have circumvented

the law with shell company named properties.

 

Good luck with that one boys.

 

 

3

They are not circumventing laws because they don't legally own it.

Edited August 5, 2017 by tropo

[stanleycoin]

18 hours ago, tropo said:

They are not circumventing laws because they don't legally own it.

If you say so 

 

[tropo]

6 hours ago, stanleycoin said:

If you say so 

 

Have some more coffee then please explain what laws they are circumventing. 

[stanleycoin]

4 hours ago, tropo said:

Have some more coffee then please explain what laws they are circumventing. 

Can you tell why foreigners have houses and land in a company name

when they have no other businesses in Thailand. ?

Most on Tv know this , but not sure you do.

its kind of getting around the law this company name house land stuff

have a nice day

 

[tropo]

1 hour ago, stanleycoin said:

Can you tell why foreigners have houses and land in a company name

when they have no other businesses in Thailand. ?

Most on Tv know this , but not sure you do.

its kind of getting around the law this company name house land stuff

have a nice day

 

You're suggesting you're correct because you think most people on Thai visa know it. That's an extremely feeble argument. Did you do a poll to work that out?

 

It's fairly obvious that the company owns it, and only 49%, so how does that make the foreigner the owner?  

 

Once again, what law are they circumventing, and also explain if your term "circumventing" means someone is breaking a law? If no one is breaking a law, then the whole concept of circumvention is meaningless.

 

Have a nice day.

[KittenKong]

3 hours ago, tropo said:

It's fairly obvious that the company owns it, and only 49%, so how does that make the foreigner the owner?  

 

It may not be entirely legal but there are plenty of examples of company-owned property where a foreigner has put up 100% of the cash and Thai nominees have indicated that they owe him their 51%. Not to mention the various preference share arrangements. So I think that it is fair to say that many farangs do indeed own property that way.

 

But even if they only own 49% on paper they are still responsible.

[Rimmer]

Topic is about a City Hall Tax not about land ownership legal or otherwise, we have a forum for house and land ownership.

[stanleycoin]

Maybe his only responsible for 49% of the Tax bill

Im sure city hall tax department will have a sympathetic  ear on that.

 

 

[pattjock]

As far as I know company owned property must pay a 12.5% property tax, based on the estimated/actual rental value, whichever is greater. You are supposed to pay this without being prompted to do so. They can back tax 10 years and add fines as well.

 

The same regulation also apply if you have more than one property, registered in your own name Thai or farang. If you have only one property there is no problem at the moment but new regulations will probably add a yearly property tax of about 0.1%

 

 

[teddog]

The company owned house,will, in essence, be a farang owned house, easy target for Thai authorities who want to make life difficult for farang,not much at the moment, but that can be increased as time goes by, potential  is enough to make decisions on buy/not buying. Another is electric and water , domestic rate or industry rate as it is a (trading) company

[Pilotman]

On 04/08/2017 at 2:48 PM, KittenKong said:

 

Are your friends' houses also in company name?

My house has been company owned for 3 years.  I pay tax on the anniversary of the company registering the property  at then land office. . Amount sounds about right.  

[Cricky]

On 04/08/2017 at 2:48 PM, KittenKong said:

 

Are your friends' houses also in company name?

Yep, only asked those with companys.

[Naam]

On 8/7/2017 at 6:56 PM, teddog said:

The company owned house,will, in essence, be a farang owned house, easy target for Thai authorities who want to make life difficult for farang,not much at the moment, but that can be increased as time goes by, potential  is enough to make decisions on buy/not buying. Another is electric and water , domestic rate or industry rate as it is a (trading) company

for companies there is a difference of water cost (higher base fee of 354 Baht/month) no difference for consumption and no difference of electricity cost.

[Naam]

On 8/7/2017 at 0:13 PM, pattjock said:

As far as I know company owned property must pay a 12.5% property tax, based on the estimated/actual rental value, whichever is greater. You are supposed to pay this without being prompted to do so. They can back tax 10 years and add fines as well.

little do you know

[scubascuba3]

I understand from numerous threads that this company thing is illegal so i guess the authorities could stop it if they wanted to. I think I'd pay the 50k etc and hope they don't take it any further. Its a matter of time though.

[Naam]

2 hours ago, scubascuba3 said:

I understand from numerous threads that this company thing is illegal so i guess the authorities could stop it if they wanted to. I think I'd pay the 50k etc and hope they don't take it any further. Its a matter of time though.

the authorities could have stopped it 40 years ago, 10 years ago, last friday, today and they could stop it tomorrow or  next thursday shortly after lunch but before tea time. the fact remains that companies are still established by Farangs on which homes are built by Farangs, Thai companies make profits, pay taxes on these profits and employment is provided because of Farang money.

 

Edited August 14, 2017 by Naam

[scubascuba3]

the authorities could have stopped it 40 years ago, 10 years ago, last friday, today and they could stop it tomorrow or  next thursday shortly after lunch but before tea time. the fact remains that companies are still established by Farangs on which homes are built by Farangs, Thai companies make profits, pay taxes on these profits and employment is provided because of Farang money.
 

Yes but i imagine they will stop it when and if there is a big fuss by Thais maybe over a shortage or cost of housing

[Naam]

19 minutes ago, scubascuba3 said:

56 minutes ago, Naam said:

the authorities could have stopped it 40 years ago, 10 years ago, last friday, today and they could stop it tomorrow or  next thursday shortly after lunch but before tea time. the fact remains that companies are still established by Farangs on which homes are built by Farangs, Thai companies make profits, pay taxes on these profits and employment is provided because of Farang money.
 

Yes but i imagine they will stop it when and if there is a big fuss by Thais maybe over a shortage or cost of housing

a rather old study from 2003 claims that ~80% of Thais can't afford own property valued in excess of 500,000 Baht. property "owned" by Farangs through companies are concentrated in touristic areas where land prices and prices for construction are light years out of reach for the afore-mentioned "average" Thai.