Real Estate for life

Tax for property transaction and property tax in thailand

Real estate transaction tax and property tax

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1. Stamp Duty

Stamp duty of 0.5% ,only the transaction change by using income tax criteria. If use Special business tax, stamp duty rate is 0.01 %

For new condominium from developer, Stamp duty is 0.01%

Stamp duty is 0.5% only when the income tax specification is used in a change transaction. If special business tax is used, the stamp duty is 0.01%.

For newly built apartments by developers, the stamp duty is 0.01%.

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2. Transfer fee

     Transfer fees of 2%  

       2 %Transfer fee.

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3. Income tax and Special business tax

     no tax gains there but we use tax 2 of Thailand In purchases there or sell the property (use either one)

In Thailand, there is no capital gains tax, but two taxes are used when buying and selling property (choose one)

   _Special business tax

Business tax of 3.3 % (levied against a vendor who has been in registered possession of the property less than 5 years) is also charged, along with income tax (similar to capital gains tax) at a variable rate.In case for new project development , in Thailand use only special business tax 3.3% but most developer will pay for it

A 3.3% sales tax (levied on suppliers who have registered to own the property for less than 5 years) and a variable rate income tax (similar to capital gains tax) will be levied. For newly developed projects, Thailand only levies a special sales tax of 3.3%, which is paid by most developers.

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    income tax

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Exemption to use income tax method instead of special business tax for the property hold more than 5 years ( In case that the owner is not in the household registration )

If the property has been held for more than 5 years, the special business tax can be replaced by income tax (if the owner's name is not on the household register)

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By law, if the owner shows a proof of reside in the property such as household registration that have the owner name in it (foreigner eligible to get a household registration at government office), the owner are eligible to use income tax criteria , not necessary to hold the property more than 5 years , which is lower tax rate than special business tax in calculation

According to the law, if the owner shows the proof of residence that he owns the property, if the household registration has the owner's name (foreigners are eligible to register with the government department), then the owner is eligible to use the income tax regulations, and does not need to hold the property for more than 5 years, so It is lower than the special sales tax.

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Income tax derived from the sale of immovable property is taxed at the standard income tax rates. The capital gains can either be included in the aggregate income or taxed separately.

Income tax is derived from the standard income tax rate paid on the sale of real property. Capital gains can be included in gross income or taxed separately.

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If the gains are taxed separately, the tax liability is subject to a special computation and the maximum tax rate applicable is 20%. ( after deduct percentage of holding period deductible

If the gains are taxed separately, the tax payable will be subject to a special calculation, with the applicable maximum tax rate of 20% (deducted after the deductible holding period percentage has been calculated).

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The taxable gains earned from selling a Thai property are computed as the selling price or the market value of the property less some deductions. The deductions are percentages of the gross amount, and these percentages depend on how long the property was held before the sale or the transfer.

  Taxable gains from the sale of property in Thailand, calculated as the selling price or market value of the property less some deductions. Deductions are deducted as a percentage of the total amount, and the percentage of the deduction depends on how long the property was held before the sale or transfer.

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STANDARD DEDUCTION FOR INCOME TAX Income Tax Deduction

HOLDING PERIOD      _cc781905 -5cde-3194-bb3b-136bad5cf58d_     _cc781905-5cde -3194-bb3b-136bad5cf58d_    DEDUCTIBLE EXPENSES

持有期     _cc781905-5cde-3194- bb3b-136bad5cf58d_     _cc781905-5cde-3194-bb3b- 136bad5cf58d_      _cc781905- 5cde-3194-bb3b-136bad5cf58d_     _cc781905-5cde- 3194-bb3b-136bad5cf58d_ _cc781905 -5cde-3194-bb3b-136bad5cf58d_     _cc781905-5cde -3194-bb3b-136bad5cf58d_     _cc781905-5cde-3194 -bb3b-136bad5cf58d_     _cc781905-5cde-3194-bb3b -136bad5cf58d_ deduction fee

1 year/ 1年     _cc781905-5cde- 3194-bb3b-136bad5cf58d_     _cc781905-5cde-3194- bb3b-136bad5cf58d_     _cc781905-5cde-3194-bb3b- 136bad5cf58d_       _cc781905 -5cde-3194-bb3b-136bad5cf58d_ _ cc781905-5cde-3194-bb3b-136bad5cf58d_     _cc781905- 5cde-3194-bb3b-136bad5cf58d_     _cc781905-5cde- 3194-bb3b-136bad5cf58d_     92%

2 years/ 2年     _cc781905-5cde- 3194-bb3b-136bad5cf58d_     _cc781905-5cde-3194- bb3b-136bad5cf58d_      _cc781905-5cde-3194-bb3b -136bad5cf58d_      _cc781905 -5cde-3194-bb3b-136bad5cf58d_        _cc781905- 5cde-3194-bb3b-136bad5cf58d_     _cc781905-5cde- 3194-bb3b-136bad5cf58d_   84%

3 years/ 3年     _cc781905-5cde- 3194-bb3b-136bad5cf58d_     _cc781905-5cde-3194- bb3b-136bad5cf58d_     _cc781905-5cde-3194-bb3b- 136bad5cf58d_       _cc781905 -5cde-3194-bb3b-136bad5cf58d_        _cc781905- 5cde-3194-bb3b-136bad5cf58d_     _cc781905-5cde- 3194-bb3b-136bad5cf58d_   77%

4 years/ 4 年     _cc781905-5cde- 3194-bb3b-136bad5cf58d_     _cc781905-5cde-3194- bb3b-136bad5cf58d_     _cc781905-5cde-3194-bb3b- 136bad5cf58d_       _cc781905 -5cde-3194-bb3b-136bad5cf58d__cc781905-5cde-3194-bb3b-136bad5cf58d _      _cc781905- 5cde-3194-bb3b-136bad5cf58d_     _cc781905-5cde- 3194-bb3b-136bad5cf58d_  71%

5 years/ 5 年        _cc781905-5cde-3194-bb3b- 136bad5cf58d_           _cc781905-5cde- 3194-bb3b-136bad5cf58d_                     _cc781905-5cde-3194 -bb3b-136bad5cf58d_65%

6 years/ 6 年     _cc781905-5cde- 3194-bb3b-136bad5cf58d_     _cc781905-5cde-3194- bb3b-136bad5cf58d_     _cc781905-5cde-3194-bb3b- 136bad5cf58d_      _cc781905- 5cde-3194-bb3b-136bad5cf58d_        _cc781905- 5cde-3194-bb3b-136bad5cf58d_     _cc781905-5cde- 3194-bb3b-136bad5cf58d_   60%

7 years/ 7 年     _cc781905-5cde- 3194-bb3b-136bad5cf58d_     _cc781905-5cde-3194- bb3b-136bad5cf58d_     _cc781905-5cde-3194-bb3b- 136bad5cf58d_       _cc781905 -5cde-3194-bb3b-136bad5cf58d__cc781905-5cde-3194-bb3b-136bad5cf58d _      _cc781905- 5cde-3194-bb3b-136bad5cf58d_     _cc781905-5cde- 3194-bb3b-136bad5cf58d_   55%

8 or more years/ 8年以上        _cc781905-5cde-3194 -bb3b-136bad5cf58d_           _cc781905 -5cde-3194-bb3b-136bad5cf58d_50%

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Example of income tax calculation

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In case of sell property at sell price 3,000,000 THB . and owner hold the property for 2 years with household registration have owner name in it

If the price of the property sold is 3,000,000 baht, and the owner's account is registered in his own name and the property is held for 2 years

 = 3,000,000

 Deduct (deducted) 84%

= 480,000

x tax rate/(tax rate) 20%

= 96,000 baht (Thai baht)

Divide by holding year = 2

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Income tax when selling = 48,000 baht (Thai baht)

 

The actual expenses incurred can be deducted, especially if they are higher than the standard deductions stated above, but it must be supported by documents.

The actual expenses incurred should be deductible, especially the deduction amount higher than the above standard, but it must be supported by relevant documents.

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The balance from the above computation will be divided by the number of years the property was held, whereby the outcome is taxed at the appropriate tax rate. The resulting tax liability will then be multiplied by the number of years the property was in the taxpayer's possession to arrive at the final tax liability.

The balance of the above calculations is divided by the number of years the property has been held and the result is taxed at the appropriate rate. The resulting tax payable will be multiplied by the number of years the taxpayer has owned the property, resulting in the final tax payable.

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But if the property was acquired as a gift or by inheritance, 50% of the proceeds (selling price or market value) are deductible as expenses. The balance or 50% of the proceeds will be divided by the number of years the property was held , and the outcome taxed at the appropriate tax rate. The resulting average tax liability will then be multiplied by the number of years the property was held to arrive at the final tax liability.

However, if the property is acquired as a gift or inheritance, 50% of the proceeds (sale price or market value) can be deducted as an expense. The balance, or the remaining 50% of the gain, will be divided by the number of years the property has been held to be taxed at the appropriate rate. The resulting tax payable will be multiplied by the number of years the taxpayer has owned the property, resulting in the final tax payable.

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Property Tax

Land Tax

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This is an annual tax levied on land ownership. The amount is often so small that in practice the body charged to collect it rarely bothers to do so. When they do collect it, it is usually after several years when the amount has accumulated.

​ This is an annual tax on land title. Taxes are often small in practice, or even not collected. Once levied, it is usually carried out after the tax has been accumulated for several years.

 

Structures Usage Tax

This only applies to commercially used properties. The rate is 12.5% on the actual or assessed gross rental value of the property. However, this notional value is well below the commercial market rental value.

This tax applies only to properties for commercial use. The tax rate is 12.5% of the actual value of the property or estimated gross rent.

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If the property is purchased through a company, you need to remember that corporate tax is higher than personal tax, and the cost of setting up the company must be considered as part of the initial investment.

​If the property is purchased in the name of a company, then you need to be aware that corporate tax is higher than personal tax and the cost of setting up the company must be considered as part of the initial investment.

 

Tax on Rental Income Rental Income Tax

This tax is charged at between 10 and 30% of the rental income, depending on the type of property leased.

​The tax is levied between 10% and 30% of rental income, depending on the type of property leased.

 

Inheritance Tax

No inheritance tax is charged in Thailand for all family members.

Thailand does not impose an inheritance tax on all family members.