When we purchased our House in Hua Hin a year and a half ago, the Land Office tried to charge us 28,000 thb for their fees when the actual charge was 8,000 thb. We just sold the same house and they said the taxes and fees were over 40,000 thb. When my wife questioned them they said we had owned the house for over 5 years (when the papers submitted showed we owned it for only 1.5 years). This time, again, my Thai wife called a friend who runs the Land Office in Korat. This friend called a lawyer in the main Bangkok Land Office who in turn called the person handling our transaction in Hua Hin. Our taxes and fees dropped to 16,000 thb with a scowling worker in Hua Hin who had been called on the carpet by the main office in Bangkok. If you don't know what the fees should be they you just take what they say and pay it.
About 6 months ago I read that the manager of the Hua Hin Land Office was removed because of corruption. Nothing has changed under the new manager. The magnitude of this corruption appears to be huge. Judging from this one transaction the amount of money there stealing from the property transactions has to be over 100,000 thb per day. That's a good amount to spread out for each person in the office in addition to the "tea" money paid on every transaction under the table just to get them to do their job without dragging their feet and taking days to process the papers.
Land Office Scam
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Khundon1975
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Aussie Mark
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Khundon1975
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brianksbrianks wrote:Tax rate is now 2% of the purchase/sale price of the house & land.
Now I am confused, did I not read somewhere a few months ago, of a reduction in Purchase tax to around to 0.01%, until March 2010 ?
What about Stamp duty, has it changed from 0.5% of the registered value of the property?
Just trying to clarify what the REAL tax rates are, not what the HH land office decide they should be!
Aussie Mark Could you please give us a breakdown of the Baht 15,000 charges you paid and was the Baht 2000 included in that total charge?
Who decided that 2000 Baht was a fair, under the counter payment, you or Land office? Would be good to know.
Edit; For typo.
I've lost my mind and I am making no effort to find it.
Aussie mark wrote
The land Office in Hua Hin service was excellent. Paid only 15,000 bht (2000) under the counter in and out in 15 mins.Wish things happened like that here in Western Australia
why are you so pleased that you paid ( 2000 under the counter.) ???? all you are doing is making corruption acceptable and harder for the rest of us to avoid.
miked
The land Office in Hua Hin service was excellent. Paid only 15,000 bht (2000) under the counter in and out in 15 mins.Wish things happened like that here in Western Australia
why are you so pleased that you paid ( 2000 under the counter.) ???? all you are doing is making corruption acceptable and harder for the rest of us to avoid.
miked
Corruption was acceptable long before Aussie mark arrived. Yes, try to avoid it but at the end of the day do you want to get a result or not?miked wrote:Aussie mark wrote
The land Office in Hua Hin service was excellent. Paid only 15,000 bht (2000) under the counter in and out in 15 mins.Wish things happened like that here in Western Australia
why are you so pleased that you paid ( 2000 under the counter.) ???? all you are doing is making corruption acceptable and harder for the rest of us to avoid.
miked
Personally, I feel ripped off. I paid 3K and it took 45 minutes
Happiness can't buy money
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stgrhe
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The transfer fee and the taxes involved are two different things.
The transfer fee, regardless of land, house, condo is reduced from 2% to 0.01% until end of March 2010, whereas the Special Business Tax (SBT) that applies instead of stamp duty if the property has been owed by the previous owner less than five years and for commercial properties, is reduced from 3.3% to 0.11% (inclusive of municipal taxes).
As a buyer one should never agree to share the SBT with the seller whereas the transfer fees and, if applicable, the stamp duty may be negotiable. The reason for that is because SBT should be seen as a capital gains tax, and it is thus the tax the seller should pay for the profit he has made. Where else in this world would a buyer agree to pay taxes on profits made by a seller?
The transfer fee, regardless of land, house, condo is reduced from 2% to 0.01% until end of March 2010, whereas the Special Business Tax (SBT) that applies instead of stamp duty if the property has been owed by the previous owner less than five years and for commercial properties, is reduced from 3.3% to 0.11% (inclusive of municipal taxes).
As a buyer one should never agree to share the SBT with the seller whereas the transfer fees and, if applicable, the stamp duty may be negotiable. The reason for that is because SBT should be seen as a capital gains tax, and it is thus the tax the seller should pay for the profit he has made. Where else in this world would a buyer agree to pay taxes on profits made by a seller?
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Aussie Mark
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Sorry if I helped corruption ,But when Im only in Hua Hin for 4 weeks I dont want to be stuck in an office for along time .I'm not sure of the actual breakdown all I know is I went to the land office with the seller of my house and got told it would cost 13,000 bht and had to pay 2000 to get in and out quickly.We entered the office straight up to the desk another person was asked to leave the chair .I was given a water and the papers to sign .The hey pressto its all over in 15 mins I wasnt going to complain
My house price was 13.5 million so maybe that will help with what % I paid
My house price was 13.5 million so maybe that will help with what % I paid
It doesn't make it harder for anyone else to avoid this fee, it's not even asked for by the officials when you turn up at the land office to make a transfer. It's a totally optional 'express' service that will be offered to you by the property business people who are familiar with the land office officials, you can pay 2,000 Baht, you will be given an appointment time, they prepare all the paperwork beforehand and you are in and out in 45 minutes from my experience.miked wrote:why are you so pleased that you paid ( 2000 under the counter.) ???? all you are doing is making corruption acceptable and harder for the rest of us to avoid.
People can choose not to pay the 2,000 Baht, and sit there for 6 hours and maybe instead pay a lawyer 4,000 Baht for their time (depending on your legal package).
SJ
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Re: Land Office Scam
brianks wrote:When we purchased our House in Hua Hin a year and a half ago, the Land Office tried to charge us 28,000 thb for their fees when the actual charge was 8,000 thb. We just sold the same house and they said the taxes and fees were over 40,000 thb. When my wife questioned them they said we had owned the house for over 5 years (when the papers submitted showed we owned it for only 1.5 years). This time, again, my Thai wife called a friend who runs the Land Office in Korat. This friend called a lawyer in the main Bangkok Land Office who in turn called the person handling our transaction in Hua Hin. Our taxes and fees dropped to 16,000 thb with a scowling worker in Hua Hin who had been called on the carpet by the main office in Bangkok. If you don't know what the fees should be they you just take what they say and pay it.
About 6 months ago I read that the manager of the Hua Hin Land Office was removed because of corruption. Nothing has changed under the new manager. The magnitude of this corruption appears to be huge. Judging from this one transaction the amount of money there stealing from the property transactions has to be over 100,000 thb per day. That's a good amount to spread out for each person in the office in addition to the "tea" money paid on every transaction under the table just to get them to do their job without dragging their feet and taking days to process the papers.
The corruption and scamming really is widespread in Thailand.
Sad.
SJ
It doesn't make it harder for anyone else to avoid this fee, it's not even asked for by the officials when you turn up at the land office to make a transfer. It's a totally optional 'express' service that will be offered to you by the property business people who are familiar with the land office officials, you can pay 2,000 Baht, you will be given an appointment time, they prepare all the paperwork beforehand and you are in and out in 45 minutes from my experience.
People can choose not to pay the 2,000 Baht, and sit there for 6 hours and maybe instead pay a lawyer 4,000 Baht for their time (depending on your legal package)
SJ
who are these "property business people" they don't work for the land office do they.???
we all understand that this is corruption.dress it up if it makes you feel better but please don't tell me that you are paying for an optional express service. you are paying to jump the queue and because of that those of us who try to avoid corruption have to wait longer.aussie mark paid money under the table. not to an agent but the land office staff. he stated in his post that the money was paid under the table.
if you want to encourage corruption by jumping the queue that's up to you. because of people like you it's harder for all of us trying to avoid it.
next you will saying" no corruption in Thailand"
miked
It doesn't make it harder for anyone else to avoid this fee, it's not even asked for by the officials when you turn up at the land office to make a transfer. It's a totally optional 'express' service that will be offered to you by the property business people who are familiar with the land office officials, you can pay 2,000 Baht, you will be given an appointment time, they prepare all the paperwork beforehand and you are in and out in 45 minutes from my experience.
People can choose not to pay the 2,000 Baht, and sit there for 6 hours and maybe instead pay a lawyer 4,000 Baht for their time (depending on your legal package)
SJ
who are these "property business people" they don't work for the land office do they.???
we all understand that this is corruption.dress it up if it makes you feel better but please don't tell me that you are paying for an optional express service. you are paying to jump the queue and because of that those of us who try to avoid corruption have to wait longer.aussie mark paid money under the table. not to an agent but the land office staff. he stated in his post that the money was paid under the table.
if you want to encourage corruption by jumping the queue that's up to you. because of people like you it's harder for all of us trying to avoid it.
next you will saying" no corruption in Thailand"
miked
No they don't work for the land office, but it is paid to the land office officials. Ofcourse it's corruption to have an express service/jump the queue.
It's optional, you can wait 6 hours if you choose, or make that 6 hours 30 minutes due to the queue jumpers. Can imagine it's a right burden on people every 10 years or so when they decide move home.
Far more serious than this, I just saw a bloke with his shoelace untied
SJ
It's optional, you can wait 6 hours if you choose, or make that 6 hours 30 minutes due to the queue jumpers. Can imagine it's a right burden on people every 10 years or so when they decide move home.
Far more serious than this, I just saw a bloke with his shoelace untied
SJ