Personal Income Tax being charged on sale of apartment
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Personal Income Tax being charged on sale of apartment
Hi
A friend recently got a hefty tax bill on selling his apartment. We are trying to work out how this personal income tax was calculated. On searching the web we find about 4 different answers with there being thousands of bahts different. One way it says you should be paying over thb600,000 another way says it’s thb200,000 yet another way says it calculates to zero! Anyone got the proper Personal Tax calculation on sale price that I can trust?
Thanks a lot
A friend recently got a hefty tax bill on selling his apartment. We are trying to work out how this personal income tax was calculated. On searching the web we find about 4 different answers with there being thousands of bahts different. One way it says you should be paying over thb600,000 another way says it’s thb200,000 yet another way says it calculates to zero! Anyone got the proper Personal Tax calculation on sale price that I can trust?
Thanks a lot
Re: Personal Income Tax being charged on sale of apartment
Surely those who have issued the tax bill must provide the calculation!!magsandbilly wrote: ↑Fri Oct 27, 2023 2:29 pm Hi
A friend recently got a hefty tax bill on selling his apartment. We are trying to work out how this personal income tax was calculated. On searching the web we find about 4 different answers with there being thousands of bahts different. One way it says you should be paying over thb600,000 another way says it’s thb200,000 yet another way says it calculates to zero! Anyone got the proper Personal Tax calculation on sale price that I can trust?
Thanks a lot
Courage is grace under pressure and when circumstances change you change your mind.
Re: Personal Income Tax being charged on sale of apartment
I got hit up for it as well. From what I was to told, it is based on the rental value, and that depends on where the Condo is, for one thing. It is a complete rip off, and just another BS Thai "rule" that is hidden away and up to the local land office.PET wrote: ↑Fri Oct 27, 2023 2:52 pmSurely those who have issued the tax bill must provide the calculation!!magsandbilly wrote: ↑Fri Oct 27, 2023 2:29 pm Hi
A friend recently got a hefty tax bill on selling his apartment. We are trying to work out how this personal income tax was calculated. On searching the web we find about 4 different answers with there being thousands of bahts different. One way it says you should be paying over thb600,000 another way says it’s thb200,000 yet another way says it calculates to zero! Anyone got the proper Personal Tax calculation on sale price that I can trust?
Thanks a lot
How can a Farang that has lived in a Condo owned by themselves, used as a residence, be subect to "tax"? I argued that I am not a taxpayer, please show me where my tax file number is! The expected glazed over look, followed by: "if you dont pay it we will not transfer the title".
Added to that, a complete idiot "sales agent" that could not, or WOULD not, insist that the way the contract was drawn up and signed, in was part of the buyers costs!
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Re: Personal Income Tax being charged on sale of apartment
Tax issuance office don’t speak English
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Re: Personal Income Tax being charged on sale of apartment
If only they would explain the calculation process!
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Re: Personal Income Tax being charged on sale of apartment
Your friend should have received an itemised receipt similar to this example.
Re: Personal Income Tax being charged on sale of apartment
I've no personal experience of this but this website has some explanation of how this tax is calculated:
https://www.sansiri.com/en/news/thai-pr ... -know-286/
https://www.sansiri.com/en/news/thai-pr ... -know-286/
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Re: Personal Income Tax being charged on sale of apartment
If the selling price is less than the price you paid for it is tax still payable?
Re: Personal Income Tax being charged on sale of apartment
The selling price is not considered, in fact it does not need to be shown to the Land Dept. The tax is calculated on THEIR rental valuation, of the size and location of the property as shown on the Chanote.dundrillin wrote: ↑Sun Oct 29, 2023 12:25 pm If the selling price is less than the price you paid for it is tax still payable?
That link on STEVE G post refers to business tax and stamp duty, not private property.
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Re: Personal Income Tax being charged on sale of apartment
Nereus are you sure you are not describing the annual property tax rather than the taxes due at sale?Nereus wrote: ↑Sun Oct 29, 2023 12:46 pmThe selling price is not considered, in fact it does not need to be shown to the Land Dept. The tax is calculated on THEIR rental valuation, of the size and location of the property as shown on the Chanote.dundrillin wrote: ↑Sun Oct 29, 2023 12:25 pm If the selling price is less than the price you paid for it is tax still payable?
That link on STEVE G post refers to business tax and stamp duty, not private property.
IMO the selling/buying prices and any subsequent profit or loss are irrelevant because taxes are based on the land departments valuation.
The LD valuation can be seen in the example receipt posted above where there is no mention of the actual selling or buying or renting prices.
Re: Personal Income Tax being charged on sale of apartment
It has nothing to do with annual property tax, which for Condos has has not been enforced since it was implemented, except for a one time small payment the first year. I had two Condos in Bangkok and only ever paid the one time.
I also never received any annual charge in regard to my house, but as the lawyers handled the sale, and followed the sales contract which stipulated my clear payment, I am not sure what the buyer had to pay.
I certainly did not pay any "tax", but he may have paid it as per the SPA.
What the OP, and myself, had to pay is "income tax", a personal charge, which is charged on the sale and transfer of property.
I have already posted that the "tax" is calculated by the Land Dept., on their valuation of the rental value.
It also has nothing to do with stamp duty and transfer charges, which can be negotiated between seller and buyer, the Land Dept only interested on the amount, not who pays it.
I also never received any annual charge in regard to my house, but as the lawyers handled the sale, and followed the sales contract which stipulated my clear payment, I am not sure what the buyer had to pay.
I certainly did not pay any "tax", but he may have paid it as per the SPA.
What the OP, and myself, had to pay is "income tax", a personal charge, which is charged on the sale and transfer of property.
I have already posted that the "tax" is calculated by the Land Dept., on their valuation of the rental value.
It also has nothing to do with stamp duty and transfer charges, which can be negotiated between seller and buyer, the Land Dept only interested on the amount, not who pays it.
May you be in heaven half an hour before the devil know`s you`re dead!
Re: Personal Income Tax being charged on sale of apartment
As I mentioned above, I have no experience of this but that link mentions how income tax is charged on property sale in schedule A, as well as business tax and stamp duty.That link on STEVE G post refers to business tax and stamp duty, not private property.
I've absolutely no idea if it's correct!
Re: Personal Income Tax being charged on sale of apartment
This is what everybody has to pay, no exception:
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 on 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.
The usual ambiguous Thai wording, and the sale price is NOT considered, so how is it calculated:
This is what is being discussed: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. 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.
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 on 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.
The usual ambiguous Thai wording, and the sale price is NOT considered, so how is it calculated:
Then this. Where is the "income" when it is a persons home?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.
As I mentioned previously: I (or my Thai daughter in this case) was not charged any "income tax" on the sale of the house in Hua Hin as far as I am aware, and as she was not present and it was all done with lawyers, it SHOULD of been done correctly.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.
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Re: Personal Income Tax being charged on sale of apartment
I've had a condo in BKK for the past 23 years.
Never paid property tax until a few years ago. Now I get a bill every year. Amount is nominal.
Re: Personal Income Tax being charged on sale of apartment
So have I, two in fact. I only ever received the first bill, which when I went to pay it I was informed that I only had to pay a few baht, not the 700 odd that was showing on the bill! TIT!malcolminthemiddle wrote: ↑Mon Oct 30, 2023 7:38 amI've had a condo in BKK for the past 23 years.
Never paid property tax until a few years ago. Now I get a bill every year. Amount is nominal.
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