house tax?

sargeant · Post by **sargeant** » Fri Jun 27, 2008 6:56 pm

Thanks for that and the quotes SJ i was going to ask the same questions i would like to know as info for my sis and get the facts on this one

Post by **sam** » Fri Jun 27, 2008 7:13 pm

Thanks for all the info, does anyone know if it is the company that is taxed or the individual?

If it is not legal for farang to have land and house via company how can there be a tax on it?

If it is the company then it must apply to Thai landlords as well, does this include landlords of leased land?

sam

Super Joe · Post by **Super Joe** » Fri Jun 27, 2008 9:13 pm

does anyone know if it is the company that is taxed or the individual?
Yes the company sam, it is the company who is receiving income from rent on their asset. The farang individual is paying out to rent their property, the fact that the farang is the company MD and shareholder is incidental. Your company could rent it out to anyone and it'd be the same
Limited Companies are required to maintain proper accounts, including records of rents received. Even if the foreigner is using the property as his own residence, the company is entitled to charge a rent. It should be clear in these cases, that the building is being used for commercial purposes, and rent is being received. This rent should also be subject to 12.5% house and land tax. Foreign property owners in this situation should be careful not to ignore their liability to this tax.
Source: A Thai accountants publication

If it is not legal for farang to have land and house via company how can there be a tax on it?

Exactly, they are taxing a company which is seen as legal until adjudged otherwise.
It is legal for a foreigner to have land and building via a Limited Company .............. providing the Thai shareholders are *cough* genuine investors *cough*

If it is the company then it must apply to Thai landlords as well, does this include landlords of leased land?

Thai landlords and Land Lessors do have to pay the 12.5%, as individuals, I believe.

SJ

Post by **robe** » Fri Jun 27, 2008 10:33 pm

This tax has been here for many years and it is a tax for commercial houses and if the land and house is owned by a company then it is commercial so it is nothing new.I have paid this tax many for years.

Post by **Norseman** » Fri Jun 27, 2008 11:14 pm

A lot of strange info from different people.
SJ; I have taken the company route so it's a Ltd.
(30 yrs lease contract on the property).
The tax depends on the value of the house.

Robe; how can you have paid this tax for many years when it was introduced this year?
One of us are misunderstanding something here, or been given wrong information.
I've been told that this tax is personal, not a company tax which I've been paying every year.

Super Joe · Post by **Super Joe** » Fri Jun 27, 2008 11:16 pm

Super Joe · Post by **Super Joe** » Sat Jun 28, 2008 12:08 am

Norseman,
If it is a new one like your solicitor said, it sounds like the one in this link.
This article says it was due to be introduced into law soon and is a personal one based on the value of the property, like you've said.
It would replace the one we've been discussing on here (House and Land Tax B.E. 2475 AD 1932) and robe said he has been paying:
http://www.kolantamagazine.com/artman/p ... le_8.shtml

Tell me if I'm being nosey but if you have a Limited Company for your property why do you have a 30 years too. Just interested, maybe you know a nice angle

Cheers,
SJ

Post by **2dandan** » Sat Jun 28, 2008 2:34 am

If I read this correctly, Norseman paid 11,000 baht for 5 years tax. That's the equivalent of 2,200 baht, 33 UK pounds, 42 Euros per year.

I pay in excess of 200 UK pounds every month for my council tax and I get my dustbin emptied every week for that amount.

So not exactly a Thai rip off. (maybe)

Post by **johnnyk** » Sat Jun 28, 2008 5:30 am

I just paid CDN$3515 today (1760 quid +/-)... they empty my dustbin 2X a month.
You've got it good, dandan!

Post by **STEVE G** » Sat Jun 28, 2008 9:45 am

According to the Tilleke & Gibbons website there is also:

Local Development Tax.

Local Development Tax is imposed on a person who either owns land or possesses land. The tax rate varies according to the estimated land value. An appraisal will be conducted by the local authorities. Allowances are granted for land utilized for personal dwellings, the raising of livestock, and the cultivation of crops by the owner. The extent of allowances permissible to any land depends on the location of the land.

Is that possibly what is being used here?

Post by **JimmyGreaves** » Sat Jun 28, 2008 12:42 pm

Norseman wrote:A lot of strange info from different people.
SJ; I have taken the company route so it's a Ltd.
(30 yrs lease contract on the property).
The tax depends on the value of the house.

Hi Norseman

You have the 30 year lease in your name I presume.

How come they missed telling you about the previous 5 years?

What if the lease was granted to a thai is this tax still applicable?

As the lesser do you have to pay the company anything per annum or better still as the lessor what mandatory outgoings are there now now per annum?

Post by **fedup** » Sat Jun 28, 2008 1:06 pm

You guys stop your wining and go down to the tessadarn office and find out whats going on!! don't listen to people who have nothing to do and spend there time making up stories!

Post by **JimmyGreaves** » Sat Jun 28, 2008 1:50 pm

fedup wrote:You guys stop your wining and go down to the tessadarn office and find out whats going on!! don't listen to people who have nothing to do and spend there time making up stories!

It's closed Saturdays and you can get answers 24/7 here. That's why I use a forum. For a second post your either not a full shilling or you need some meditation!

Post by **Norseman** » Sat Jun 28, 2008 2:17 pm

JimmyGreaves wrote:
You have the 30 year lease in your name I presume.
Yes.

How come they missed telling you about the previous 5 years?
As it's a new law they didn't know about it before this year.
That was also my first question when I first heard of it. Why the hell did nobody tell me about it before!! Bloody lawyer!!
But as it turned out they were innocent and I was the one who had to make an apology.

What if the lease was granted to a thai is this tax still applicable?
No. It's a mere farang law

As the lesser do you have to pay the company anything per annum or better still as the lessor what mandatory outgoings are there now now per annum?
Not 100% sure if I understand your question but here is what I think you ask for:
I pay nothing except the annual governmental tax plus this new local tax. If we in addition have to pay the shareholders I will transfer everything and put it my wife's name. My shareholders are good friends of mine but all of them have more than enough money. In fact more money than me.

Post by **Big Boy** » Sat Jun 28, 2008 2:47 pm

The bit that's confusing me is that if the law is new, why did you have to pay for the period prior to the law?