Lands Department Fees

   The Lands Department will charge 4 taxes on the sale of a property. The first tax is a Stamp Duty which is paid on the "Estimated Lands Department Valuation"   This tax will either be 0.5% or nothing depending on whether Business tax is to be paid or not.
Transfer Fees will always be 2%.
   Business tax is also a little confusing. If you own your property for less than 5 years, then Business Tax of 3% plus Local Tax of 0.3% is payable on the "Sale Price" of the property, unless you register as living there, in which case, Business Tax is only payable if you live there less than 1 year. If Business Tax is payable then the Stamp Duty of 0.5% is not.

   The final tax is a Withholding Tax which has a complicated formula that offers discounts on the value of the property depending on how long it has been owned.


Table A
Property Owned 1 year or less Discount 92%
Property Owned for 2 years Discount 84%
Property Owned for 3 years Discount 77%
Property Owned for 4 years Discount 71%
Property Owned for 5 years Discount 65%
Property Owned for 6 years Discount 60%
Property Owned for 7 years Discount 55%
Property Owned for 8 years or more. Discount 50%


Table B
Income (Personal)
Tax
0 - 100,000 Baht
5%
100,001 - 500,000 Baht
10%
500,001 - 1 Million Baht
20%
1 Million Baht - 4 Million Baht
30%
4 Million Baht and more
37%

Formula = ("Price of Property" minus "Discounted Percent")divided by "Number of years owned)

This answer is the "Income" that is taxable per annum.

Work out the amount of Tax owed and then multiply by the number of years for the gross total.

An example:
Lets assume that you own a property for 3 years and the sale price was 4 Million Baht.

First thing to work out, is that it was owned less than 5 years and Business Tax of 3.3% is payable.
Transfer Fees are 2.0%.

The "Withholding Tax" is then calculated on the "Discount Percent" scale.

Using Table A of discount applied.
3 years ownership = 77% discount
4 million baht @ 77% discount = 3,080,000 Baht
Taxable Amount = 4,000,000 minus 3,080,000 = 920,000 Baht
This is your Income and is divided by 3 (years owned)

Taxable Income = 306,666 Baht

Using Table B of Taxation Scale
100,000 baht = 5,000 Baht tax
206,666 baht = 20,666 baht tax
Total tax = 25,666 baht multiplied by 3 = 76,998 Baht

Fees Payable:
Transfer Fees 2% = 80,000 Baht
Stamp Duty = 0
Business Tax 3.3% = 132,000 Baht
Withholding Tax = 77,000 Baht
Total Fees Payable = 289,000 Baht

It is the buyers and the sellers right to negotiate as to who pays these taxes or if they are to be shared.

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