Selling a Condominium:Taxes and Government Fees Applicable
November 19 2012 Categories: Condominium Ownership, Thailand Real Estate No comments yet
In this post we will show how the government fees and taxes payable at the Land Department are calculated in the case of the resale of a condominium. Note that in the two examples below we envisaged a transaction before end of March 2010 and after March 2010 because government fees are discounted until the end of March 2010.
Note that in the two examples below the seller’s is an individual. In a later post we shall shows what are the government fees and taxes applicable if the seller is a company
First Example:
For the purpose of this example we assume as follows:
Sale of a Condominium
- Seller: Individual
- Years of Ownership: 3 years
- Assessed value: THB 9,000,000
(Assessed value is the value of a property as calculated by the Land Department)
- Sale Price: THB 13,000,000
Table A: Taxes and Government Fees applicable if transaction registered BEFORE end of March 2010
| Date of Transaction15 March 2010
|
Base of Calculation | Taxes or Government Fees | ||
| Government Fees | ||||
| Transfer fee before March 2010 = 0.01% |
Assessed Value |
THB 900 |
||
| Stamp duty (1/200 sale price) |
Not Applicable |
————– |
||
| Taxes |
|
|
||
| Special business before March 2010 = 0.11% |
Sale Price |
THB 14,300 |
||
| Withholding tax = progressive tax rate |
Assessed Value Mitigated |
THB 249,000 |
||
| TOTAL |
THB 264,200 |
|||
Table B: Taxes and Government Fees applicable if transaction registered AFTER end of March 2010
| Date of Transaction15 April 20101 | Base of Calculation | Taxes or Government Fees |
| Government Fees | ||
| Transfer fee after March 2010 = 2% |
Assessed Value |
THB 180,000 |
| Stamp duty (1/200 sale price) |
Not Applicable |
————– |
| Taxes |
|
|
| Special business tax after March 2010 = 3.3% |
Sale Price |
THB 429,000 |
| Withholding tax = progressive tax rate |
Assessed Value Mitigated |
THB 249,000 |
| TOTAL |
THB 858,000 |
Second Example:
Sale of a Condominium
- Seller: Individual
- Years of Ownership: 6 years
- Assessed value: THB 9,000,000
(Assessed value is the value of a property as calculated by the Land Department)
- Sale Price: THB 13,000,000
Table C: Taxes and Government Fees applicable if transaction registered BEFORE end of March 2010
| Date of Transaction 15 March 2010 | Base of Calculation | Taxes or Government Fees |
| Government Fees | ||
| Transfer fee before March of 2010 = 0.01% |
Assessed Value |
THB 900 |
| Stamp duty (1/200 sale price) |
Sale Price |
THB 65,000 |
| Taxes |
|
|
| Special business tax before March of 2010 = 0.11% |
Not Applicable |
————— |
| Withholding tax = progressive tax rate |
Assessed Value Mitigated |
THB 390,000 |
| TOTAL |
THB 455,900 |
Table D: Taxes and Government Fees applicable if transaction registered AFTER end of March 2010
| Date of Transaction:15 April 2010 | Base of Calculation | Taxes or Government Fees |
| Government Fees | ||
| Transfer fee after March of 2010 = 2% |
Assessed Value |
THB 180,000 |
| Stamp duty (1/200 sale price) |
Sale Price |
THB 65,000 |
| Taxes |
|
|
| Special business tax after March of 2010 = 3.3% |
Not Applicable |
—————- |
| Withholding tax = progressive tax rate |
Assessed Value Mitigated |
THB 390,000 |
| TOTAL |
THB 635,000 |
Note that you should calculate the amount of the government fees and taxes applicables in the case of a condominium transaction even if you are the buyer. Indeed, individuals sellers often condition the sell of their units upon the buyers paying all government fees and taxes.
In tomorrow post we shall explain in detail how the withholding tax on the capital gain of the seller is calculated.
Note: If your condominium is your main residence and if you purchased another property withing a year you may benefit of a tax exemption.
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
Originally posted 2009-12-09 06:47:13.
