Taxes and fees involved whilst buying land,houses and condominiums in Thailand.

Land calculations

 

1) Seller’s personal income tax.

Calculated from how long the seller owned the land precious to selling the property.

Amount of years owned	Percentage deducted
1 yr	- 92% = 8%
2 yr	- 84% = 16%
3 yr	- 77% = 23%
4 yr	- 71% = 29%
5 yr	- 65% = 35%
6 yr	- 60% = 40%
7 yr	- 55% = 45%
8 yr	- 50% = 50%

From this formula the personal tax to be calculated
at the land department is for example 10,000,000 baht property sale and owned for 5 years, then the 65% is deducted leaving 35% left.= 3,500,000 divided by the amount of years = 700,000 baht.
From this you must refer to graph 2.

 

Graph 2

1           – 100,000       5%  of 100,000 =    5000
100,000 – 500,000       10% of 400,000 = 40,000
500,000 – 1 Mil            20% of 200,000 = 40,000
1 Mil      – 4 Mil             30%
4 Mil      – More            37%

 

Total of 85,000 x 5 years = 425,000 baht Personal
Tax for the seller.
Complete income tax on property sales depends on their other income but the seller has the option of not declaring the sale to the tax department.

 

If it is a company, then the calculation will be1% of the purchase price or the evaluation price, whichever is the highest.

 

The land is evaluated by the land department andis adjusted due to things such as facing the road, swimming pool access, sea view, higher levels ofcondominiums, area the property is situated, etc…

 

2) Transfer fee of 2% of the purchase price or the evaluation price, whichever is the highest.
10,000,000 x 2% = 200,000
If a company buys, it is calculated from the sale price.

 

If the person buys then it is calculated from the evaluation price.

If the purchase price is lower than the evaluation price, then the calculation will be made from the evaluation price as set at the land department.

 

3) PT40 Business tax.
If owned less than 5 years, the business tax will be 3.3% of the highest price.

If owned more than 5 years, then there will be a duty stamp charge of 0.50%

 

0.50% of 10,000,000 = 50,000
425,000 baht personal tax for the seller
200,000 baht for the transfer fee
50,000 baht for the duty stamp charge
675,000 baht Total

 

Revision of calculating personal tax

Follow graph 1 with the amount of years the property was
owned, deduct the % and keep the remainding % of the price of
the property, divide it by the amount of years, follow the second
graph for the calculation and times it by the amount of years to
find the amount of personal tax on the property to be paid at the
land department.