Thailander

The Land of Smiles

  • Home
  • About
  • Visiting the Land of Smiles

Thailand Real Estate Transfer Tax and Temporary Tax Breaks

July 1, 2011 By Thailander Thailander

In order to boost the real estate property sales business and the real property development business the Thai government has extended the tax breaks for all real estate transactions for another year till 28th of March 2010.

The renewal of the temporary reduction on the transfer fee rate from 2% to 0.01% has been announced prior to the previous tax reduction between March 29 2008 and March 28 2009. The renewal of the temporary reduction of Specific Business Tax, from 3.3% to 0.11%, on gross sales which also expired on March 28 2009 has been announced after the previous expiration date and is again applied by the land offices since May 18 2009. Over real estate property transaction (land, house or condominium) between the previous expiration date March 28 and May 18 and over which the full 3,3 % Specific Business Tax rate has been paid a refund can be requested at the Revenue Department.

The Thailand Revenue Department’s refund form must be prepared and submitted with the Revenue Department.

Thailand’s standard property transfer taxes (these will apply again after March 28 2010, unless the current tax reduction will be extended):

1 – A 2% transfer fee over the appraised or registered value of the property.

Appraised or registered value of land is an actual evaluation price of the land which calculated by the land office by reference to each area at which the land situated and some more criteria set out by the Land Department.

The appraised or registered value of a house by the Land Department depends on the floor area of the house, number of floors, materials used (e.g. wood or concrete).

Also condominium units have an a registered or appraised value based on calculation criteria set out by the Land Department.

2 – A Specific Business Tax of 3,3 % is calculated over the registered value or appraised value, whichever is higher. Specific Business tax shall be payable if the seller sells the property within five years of the purchase registration date. The transfer is not subject to business tax if the seller is an individual and has possessed the property for more than five years before the transfer. Companies with specific objectives are subject to Specific Business tax irrespective the period of ownership.

3 – Stamp Duty of 0,5 % over the registered value. If the seller is subject to Specific Business tax the seller is exempt from the payment of the Stamp Duty. However, if the stamp duty has been paid to the Land Department, the seller shall have the right to claim for a refund in full within 6 months after the payment.

4 Withholding Tax of 1 % over the registered value or appraised value (whichever is higher). Withholding Personal Income Tax depends if the immovable property is acquired by inheritance or gift or if the sale and purchase of the property has a trade or profit seeking purpose or not, usually the final Withholding Personal Income Tax income shall be calculated at progressive rate with a deduction depending on the number of years of possession.

In a real estate transaction in Thailand there is generally no fixed rule who has to pay which tax and at what percentage. Often transfer taxes are shared or the purchaser pays all or the seller pays all. This is part of the overall negotiation. In case of an official approved housing or condominium development there are fixed rules in the law who has to pay which tax.

It is in most cases worth while to have the sale agreement checked by a legal professional who is familiar with property transactions and transfer taxes. Often developers pass on taxes or request buyers to pay for certain taxes they are according to Thai law responsible for, or a buyer ends up with paying a larger amount at the Land Office than expected.

Filed Under: News And Society Tagged With: Real Estate Property, Thailand Estate, Transfer Taxes

Tags

15 Months Absolute Pleasure Andaman Sea Baht Bangkok Best Beaches Buddhist Temples Business Visa Cheap Travel Colorful Flowers Constitutional Monarchy Fiance Visa floating market Fruit Lovers Full Moon Party Grievance Health Tourism Jet Skis Kingdom Of Thailand King Rama Luxury Restaurants Mountain Areas Outdoor Enthusiasts Phi Phi Phuket Private Clinics Quality Golf resorts Spiritual Haven Supermarkets Thai Customs Thai food Thailand Thailand Government Thailand Travel Thai Marriage Thai Word tips Tourists Tourist Visa travel Travel And Tourism University Hospitals Visa Application Visa Thailand

Categories

  • A Delicious Vegetarian Maharashtrian Thali In Pune India
  • Arts And Entertainment
  • Best Approach To Tax Problem
  • Business And Market Overview Of Indonesia
  • Buying Cars Online With Cars4thais
  • Communications
  • Creative Real Estate Financing Methods
  • Crocodile Farm
  • Cutting Costs On That Fabulous Cruise
  • Discount Hotels In Japan
  • Enter The Oasis Of Dusit Princess Koh Chang
  • Finance
  • Flights To Accra And Kotoka International Airport
  • Global Medical Book Announcing Their Definition Of Medical Tourism
  • Green Card Lottery USAFIS United States Immigration Part Two Hundred Thirty Four
  • Health And Fitness
  • Home And Family
  • Home Improvement
  • Hotels! Hotels! Pick Your Hotel!
  • How To Say Sorry To Your Man – Help For Women Who've Made A Mistake
  • Hua Hin And Prachupuap Khirikan
  • Insurance
  • Internet And Businesses Online
  • Investing
  • Krabi A Destination For Relaxing Vacation
  • L.A. Rental Car Offers The Best Possible Car Rental Deals
  • Lamai
  • Lapland Is The Perfect Summer Destination
  • Legal
  • Medical Tourism And Global Healthcare Where Are You Going?
  • News And Society
  • Pattaya Red Light District Where You Should Stay For Holiday
  • Personal Ads
  • Probationary Period
  • Real Estate
  • Recreation And Sports
  • Reference And Education
  • Relationships
  • Retain Only The Best Criminal Attorney
  • Shopping And Product Reviews
  • Stay In Luxury Beach Hotel In Phuket
  • Sukhumvit – The Quintessential Thai Nocturnal Experience
  • Thai Women For Marriage & Dating At Online Dating Sites
  • Thailand Spa
  • Thailand</b> As An Outsourced Software Development Destination
  • Thailand</b> At Booking Station
  • Thailand</b> Dating Services
  • Thailand</b> For Thai And Foreign Companies
  • Thailand</b> Gap Year Choices
  • Thailand</b> Hotel
  • Thailand</b> Hotels Booking
  • Thailand</b> LNG Export And Import Markets To 2015 Aarkstore Enterprise Market Research
  • Thailand</b> Mail Order Brides At Thai Dating Service
  • Thailand</b> Make For An Intriguing Holiday
  • Thailand</b> Travel In 5 Easy Steps
  • Thailand</b> Women For Love And Marriage At Bangkok Dating Sites
  • Tokyo Eatables, Timesaving And Cost Low
  • Toronto Airport Limousine Service
  • Travel And Leisure
  • Travel Company
  • Travel Tips: Bangkok Flight Travelers
  • UKRAINE TRY TO ATTRACT OIL AND GAS INVESTORS BUT LACK INFRASTRUCTURE TO DO SO
  • Uncategorized
  • US K1 Fiancee Visa: When Can My Thai Fiancee Travel To The USA?
  • Vacations

Copyright © 2023 Thailander.com · WordPress · Log in