Lands Department Fees

New Tax scale as from 28th March 2008 until 31st December 2008

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

 The first tax is a Stamp Duty which will be 0.01%*.

 Business Tax is 0.1%* on the "Sale Price" of the property.

  * Note: This does not apply to vacant land.
 The old rates for Stamp Duty and Business Tax still apply

 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.

   

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%

 

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.

Stamp Duty will 400 Baht

Business Tax will be 4,000 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 0.1% = 4,000 Baht

Withholding Tax = 77,000 Baht

Total Fees Payable = 81,400 Baht

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