Thailand Property: End of the Discounted Transfer Fees?
January 7 2012 Categories: Thailand Business No comments yet
One the Real Estate front the question that got everyone agitated is whether the Government will extend the privilege of discounted taxes and government fees on property transactions as the deadline for the end of this privilege (28 March 2010) is coming closer.
The Government is for the time being silent as whether it will or not extend this measure and many property developers are now actively lobbying the authorities for a one more year extension.
Practically what kind of saving does the discounted rate bring to the Sellers or Buyers of properties? To better help you to grasp the amount of saving brought by the discounted rate we have drafted below a table showing the cost of Transfer fees and Special Business Taxes applicable on a 1,000,000 THB property and the saving realized on those as a result of the discounted rates.
Note: The Transfer Fees and the Special Business Taxes are not the only fees and taxes applicable in the event of a property transfer but they are the two which are currently discounted. For more information as to all the taxes and fees applicable when selling a property please see my post: Selling a Condominium Taxes and Government Fees Applicable
| Fees or Taxes | Taxes or Fees Levied at Normal Rate per Million THB | Taxes or Fees Levied at Discounted Rate per Million THB | Saving per Million THB |
| Transfer Fees | 2% x 1,000,000 = 20,000 | 0.01% x 1,000,000 = 100 | 19,900 THB |
| Special Business Tax | 3.3% x 1,000,000 = 33,000 | 0.11% x 1,000,000 = 1,100 | 31,900 THB |
| Total Fees and Taxes per million THB | 5.3% or 53,000 THB | 0.12% or 1,200 THB | 5.18% 51,800 THB |
Reminder: This table does not shows the entire taxes or duties applicable to a property transfer only those that are discounted.
The issue of whether the discount privilege period will or not be extended is far from trivial as one may see from the example above and the end of the privilege will means an increase in property prices of 5.18%.
About the Author:
The author Rene-Philippe DUBOUT is a lawyer since 1990 when he was admitted to Geneva bar (Switzerland). He practiced as a litigator there for 10 years until he moved to Thailand in 1999. In 2002 he founded with a group of Thai lawyers Rene Philippe & Partners Ltd a local law firm that specialized in Cross Borders Investments and Real Estate. He has been lecturing in several Thai Universities and a speaker to numerous conferences and seminars. He is the author of a must read book:”How to Purchase Real Estate Offshore Safely: The Case of Thailand”.
http//:www.renephilippe.com
© Copyrights 2009 – Rene Philippe Dubout – This article may be reprinted if information about the author, the websites, and the URLs remain intact
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Originally posted 2010-01-11 03:45:58.
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