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Tax Law for Buying and Selling Property in Thailand

Tax Law for Buying and Selling Property in Thailand

There are certain tax laws for buying and selling property in every country that needs to be strictly followed. Similarly, tax law in Thailand also holds certain responsibilities and fees for every buyers and seller.

Thailand has accelerated its popularity in real estate business and holiday destination. Most of the foreigners are willing to invest in Thailand property. But, Every person living in Thailand has to follow the tax law set-up by the government. In the other hand, it is the duty of every person residing in Thailand, regardless his/her nationality.

Accordingly, some of the Major essentials of tax law in Thailand are explained below:

Transferring Fee

For the registered value of the property, the transferring fee is 2% in Thailand. The transferring fee is directly dependent upon the sale and purchase agreement between buyer and seller. Transferring fee is paid to the land office the day of ownership transferring. This fee is normally paid by the buyer.

Stamp Duty

Normally, the stamp duty fee is 0.5% in the evaluated property or actual buying price for the buyer or seller. The party reliable for this extra 0.5% of tax will be in agreement in Sale and Purchase Agreement. Tax is to be obligatory unless the precise Business Tax (SBT) is paid.

Specific Business Tax Law (SBT)

SBT can solely be obligatory if you’re marketing your property, which you’ve got closely-held for fewer than an amount of 5 years. The rate is 3.3% of the marketing or assessed value of associate quality (whichever is higher).

Withholding Tax

Individuals trading their property: The withholding is decided below to Revenue code of Thailand. The seller shall withhold such tax and pay to the Revenue Department, once he/she earn income from the sale of inflexible property (including a condominium unit). withholding rates are calculated primarily based on government assessed value with a deduction of possession year, that are varied depending on the year of your possession (the a lot of years of possession, the a lot of the deduction) and calculate that amount on the basis of income from progressive tax (range from 0 – 37%).

A company selling their property: The withholding tax of 1% from appraised worth of property or actual terms, whichever is higher, should be paid by the vendor. However, there aren’t any property taxes such as in Thailand that is precisely resembling the property taxes within the West.

Commercial properties incur a tiny low tax that is collected sporadic. In terms of registering a lease agreement, a registration of a lease for the period of more than 3 years is needed to pay a registration fee rate of 1% and a 0.1% rate of the stamp tax. Rates are calculated from the entire quantity of the charter fee or the key cash or each.

TAX Law in Thailand Overview

TAX Normally Paying Party Amount
Transfer Fee Buyer Registered value’s 2%
Stamp Duty Seller Registered value’s 0.5%  
Withholding Tax Seller Appraised value’s 1%
Business Tax Seller Appraised value’s 3.3%

Above details are some of the fee and tax laws you should consider before any process of buying and selling property in Thailand. Basic understanding of these Tax law in Thailand in necessary for any new foreign investors. For more guidance, you can always contact our professionals to guide you through complete the process.

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