Guideline : Property Tax and Fees in Thailand


Nov 2019

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Property Related

Are you looking for a property to buy or invest in Thailand but still in doubt about property taxes and fees?

List Sotheby’s International Realty, Thailand has consolidated all information about Thai Property Tax and fees you need to know.

Property tax is the tax that will apply to land as well as condominiums, apartments and buildings, including houses, townhome villa or any construction which can be used as a residence or for storage, industrial or commercial purposes.

Tax incurred upon the sale of property

1.Transfer fee (2%)

***Usually Buyer and Seller Split this Fee 50:50 The Thai government imposes a fixed transfer fee of 2% of the sale figure when purchasing or selling a property. This fee is usually shared between the buyer and seller (at 1% each) with responsibility landing on both parties but is negotiable depending on the terms agreed upon.

2. Stamp duty (0.5%)

*** Apply only if selling property in possession >= 5 years If the property has been owned for equal to or more than five years, a stamp duty of 0.5% is also imposed on the sale.

3.Specific Business Tax (3.3%)

*** Apply only if selling property in possession < 5 years

  • When it comes to business tax upon the sale of a property, a levy of 3.3% of the registered sale price or appraised value (whichever is higher) is handed over through the sale.
  • This amount comprises of Specific Business Tax (3%) and local tax (0.3%), which is applicable to the sale of immovable property or real estate in a commercial or profitable manner.
  • It should be noted that this tax is only applicable in the first 5 years after ownership of the property. If the property was acquired through inheritance, this figure is waived regardless of the time period that it was owned for.

4.Withholding Tax

  • Property tax upon the sale of a property is payable by sellers based on a withholding tax structure that is calculated progressively based on the sale price or appraisal value (whichever is higher) of the property in question and the duration that the property has been owned for.
  • The withholding tax is essentially calculated using selling price as gross income then deducting expense from Schedule B (shown in table below) to get net income. One then divides net income with years in possession to get yearly net income. One can use net income per year to calculate tax income per year from Schedule A. The final step is to multiply tax income per year with years that the property has been in possession to calculate total Withholding tax.

Schedule A: Personal Income Tax

Income From To Tax Rate
0 150,000 0%
150,001 300,000 5%
300,001 500,000 10%
500,001 750,000 15%
750,001 1,000,000 20%
1,000,001 2,000,000 25%
2,000,001 5,000,000 30%
5,000,001 And Above 35%

Schedule B: Deductible Expense

Year in Possesion Deductive
1 92%
2 84%
3 77%
4 71%
5 65%
6 60%
7 55%
8 or more 50%

Tax incurred upon the sale of property

  • Withholding tax is calculated by using selling price as income then deduct expense from Schedule B to get net income
  • Divide net income with years in possession to get yearly net income.
  • Use net income per year to calculate tax income per year from Schedule A.
  • Final step is multiplied tax income per year with years in possession to get withholding tax

Example of a property that was sold for 4,000,000 THB and owned for 4 years.

The table below shows the step-by-step calculation process:

Withholding Tax Calculation Step by Step Amount (THB)
A. Income is 4,000,000
B. Deductible Expense is 71% which is 2,840,000
C. Net Income is (A-B) 1,160,000 1,160,000
D. Net Income per year is (C/4 years) 290,000
E. Net Income tax per year is (D*5%) 14,500
F. Withholding Tax is (E x 4 years) 58,000

Based on the above figures, the total withholding tax for the year will be 58,000 THB

Tax incurred on rental income

Aside from property tax incurred on the sale of property, investors are usually concerned about the tax structure for rental income.

The following table shows the personal income tax rates:

Schedule A: Personal Income Tax

Income From To Tax Rate
0 150,000 0%
150,001 300,000 5%
300,001 500,000 10%
500,001 750,000 15%
750,001 1,000,000 20%
1,000,001 2,000,000 25%
2,000,001 5,000,000 30%
5,000,001 And Above 35%
  • The best way to represent these figures is again by an example.
  • The average monthly rate of a 1 Bedroom in the Thonglor area is 35,000 Baht.
  • Taking the average rental yield to be 5%, the property price will be annual rental income (35,000 Baht X 12 months) divided by rental yield, which equates to 8,400,000 Baht.
  • The table below shows the calculation for annual income tax from the rental property:
Withholding Tax Calculation Step by Step Amount (THB)
A. Total income is 420,000
B. Personal allowance is 60,000
C. Net Income is (A-B) 360,000
D. Personal income tax is (C*3%) 13,500
E. Building and land tax is (A*12.5%) 52,500
F. Total tax is (D+E) 66,000

Should you need further information or free investment consultation, please feel free to contact us as following:

Call/WhatsApp: +66 95 594 1139

Email: contact@listsir.in.th

LINE: @listsir-th

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