Everything to Know about the Tax Regime for Condos in Thailand

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Tax regime for condominiums in thailand

TAX REGIME FOR CONDOMINIUMS IN THAILAND

TAXES ON PROPERTY TRANSFER

TAX ON FUND REPATRIATION

TAX ON CAPITAL GAIN

TAX ON OWNERSHIP

TAX ON RENTAL INCOME

TAXES ON PROPERTY TRANSFER (CONVEYANCE TAXES)

CONVEYANCE TAXES IF THE SELLER IS AN INDIVIDUAL

CONVEYANCE TAXES IF THE SELLER IS A COMPANY

TABLES OF CALCULATION OF CONVEYANCE TAXES

Compulsory taxes paid on the ownership transfer date to the local Land Department where the condo is registered

Whether the taxes are paid by the purchaser or the seller is decided during the negotiation with the help of your property agent. The taxes are to be paid by cashier check only. The identity of the payer does not matter. In case the taxes are paid by the buyer,

There are in all cases 3 conveyance taxes:

  • Transfer Fee
  • Withholding tax (also called “Income Tax”)
  • Special Business Tax (also called “Business Tax”) OR Stamp Duty (either of these)

Depending on the nature of the tax, the calculation is based on:

  • The condo assessed value by the land department; and/or
  • The selling price declared to the Land Department; and/or
  • The duration of ownership of the condo
CONVEYANCE TAXES IF THE SELLER IS AN INDIVIDUAL*

* Thai or foreign

.

Lexicon
  • The “Appraised value” is calculated by the Central Valuation Authority (CVA) and announced by the land department every 4 years
  • The "transaction price" is the final sales price agreed between the seller and the buyer and declared
Tax Detail
Transfer fee 2% of the appraised value of the property
Withholding tax Based on i) the appraised value of the property and ii) the duration of ownership Progressive rate until 8 years of ownership - regressive after In the range of 1.05% to 5.60% of the appraised value
Special Business tax 3.3% of the appraised value of the property OR the transaction price, whichever is higher Applies if the property is sold within 5 years after the purchase
OR Applies if the property is sold within 5 years after the purchase Exception: If the property is registered as a first home in the "Yellow Book", only applies if sold within 1 year
Stamp Duty 0.5% of the appraised value of the property OR the transaction price, whichever is higher => Applies whenever the Special Business Tax doesn't apply
CONVEYANCE TAXES IF THE SELLER IS A COMPANY*

* Thai or foreign

.

Tax Detail
Transfer fee 2% of the appraised value of the property
Withholding tax 1% of the appraised value of the property OR the transaction price, whichever is higher
Special Business tax 3.3% of the appraised value of the property OR the transaction price, whichever is higher => Applies without exceptions
TABLES OF CALCULATION OF CONVEYANCE TAXES

Case 1 (Conservative scenario)

  • 10,000,000 THB declared transaction price
  • 10,000,000 THB appraised value
YEARS HELD 1 2 3 4 5 6 7 8 9 10
Transfer Fee
Stamp Duty
Specific Business Tax
Withholding Tax
 200,000
0
330,000
105,000
 200,000
0
330,000
210,000
 200,000
0
330,000
295,000
 200,000
0
330,000
360,000
 200,000
0
330,000
425,000
 200,000
0
330,000
470,000
 200,000
0
330,000
515,000
 200,000
0
330,000
560,000
 200,000
0
330,000
505,000
 200,000
0
330,000
450,000
Total Tax Payable
% of selling price
 635,000
6.35% 		740,000
7.40% 		825,000
8.25% 		890,000 8.90% 955,000 9.55% 720,000 7.20% 765,000 7.65% 810,000 8.10% 755,000 7.55% 700,000 7.00%

Case 2 (Base Case scenario)

  • 10,000,000 THB declared transaction price
  • 7,000,000 appraised value
YEARS HELD 1 2 3 4 5 6 7 8 9 10
Transfer Fee
Stamp Duty
Specific Business Tax
Withholding Tax
 140,000
0
330,000
105,000
 140,000
0
330,000
210,000
 140,000
0
330,000
295,000
 140,000
0
330,000
360,000
 140,000
0
330,000
425,000
 140,000
50.000
0
470,000
 140,000
50.000
0
515,000
 140,000
50.000
0
560,000
 140,000
50.000
0
505,000
 140,000
50.000
0
450,000
Total Tax Payable
% of selling price 		575,000
5.75% 		680,000
6.80% 		765,000
7.65% 		830,000
8.30% 		895,000
8.95% 		660,000
6.60% 		705,000
7.05% 		750,000
7.50% 		695,000
6.95% 		640,000
6.40%

Case 3 (Base Case + registration)

  • 10,000,000 THB declared transaction price
  • 7,000,000 THB appraised value
  • The condo is registered as a first home ("yellow book" for foreigners)
YEARS HELD 1 2 3 4 5 6 7 8 9 10
Transfer Fee
Stamp Duty
Specific Business Tax
Withholding Tax
 140,000
0
330,000
105,000
 140,000
50.000
0
210,000
 140,000
50.000
0
295,000
 140,000
50.000
0
360,000
 140,000
50.000
0
425,000
 140,000
50.000
0
470,000
 140,000
50.000
0
515,000
 140,000
50.000
0
560,000
 140,000
50.000
0
505,000
 140,000
50.000
0
450,000
Total Tax Payable
% of selling price
 575,000
5.75% 		400,000
4.00% 		485,000
4.85% 		550,000
5.50% 		615,000
6.15% 		660,000
6.60% 		705,000
7.05% 		750,000
7.50% 		695,000
6.95% 		640,000
6.40%

TAX ON FUND REPATRIATION

TAX ON CAPITAL GAIN

TAX ON OWNERSHIP

Also called “Land and House Tax”

  • NO TAX
  • Taxes only apply for houses or any other type of standalone building

TAX ON RENTAL INCOME

  • In theory, the tax amounts 15% of the annual rental income if the owner is a foreigner (5% if Thai company)
  • In practice, the tax doesn’t apply as the income is self-declared, and most tenants are individuals who don’t request a receipt for the payment of the rent