New Tax scale as from 29th March 2008 until 28th March 2010

 The Lands Department will charge 3 taxes on the sale of a property.

 The registration fee is 0.01% of the assessed price**, plus the specific business tax (which includes the municipality tax) of 0.11% of the transaction price (this is only applicable if the property has been held by the seller less than five years), or stamp duty of 0.5% of the transaction price, if the specific business tax is not applicable because the property has been held by the seller more than five years.

 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.

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.

Transfer Fee will 400 Baht. (0.01% of 4 million Baht: Property owned less than 5 years.)

Business Tax will be 4,400 Baht. (0.11% of 4 million Baht.)

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

So, 3 years ownership = 77% discount

4 million baht @ 77% discount = 920,000 Baht Income divided by 3 (years owned)

Taxable Income = 306,666 Baht

Using Taxation scale:

First 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

The payer of these fees is negotiable.

Fees Payable:

Stamp Duty 0.01% = 400 Baht

Business Tax 0.11% = 4,400 Baht

Withholding Tax = 77,000 Baht

Total Fees Payable = 81,800 Baht

**Please note that the assessed price is not necessarily the sale price.

  (Return to Main page)