Selling
Relevant Taxes
Tax | Calculation | Who Pays |
|---|---|---|
Special Business Tax | 3.3% of appraised value or registered sale value (whichever is higher). This is applied if a property has been in possession of a seller < 5 years. | Seller |
Stamp Duty | 0.5% of registered property value. Payable only if business tax exempted. Applied only if selling the property in possession >= 5 years. | Seller |
Transfer Fee | 2% of registered property value | Buyer |
Withholding Tax | 1% of property’s appraised value or registered sale value (whichever is higher). Progressive rate based on the appraisal value of the property will be applied if a seller is an individual. The calculation is by using selling price as income deducted by expenses throughout years in possession to get yearly net income. Then use net income per year to calculate tax income per year from personal income then multiply it with years in possession to get the withholding tax. | Seller |
Personal Income Tax
From | To | Tax Rate |
|---|---|---|
0 | 150,000 | 0% |
150,001 | 300,000 | 5% |
300,001 | 500,000 | 10% |
500,001 | 500,000 | 15% |
750,001 | 1,000,000 | 20% |
1,000,001 | 2,000,000 | 25% |
2,000,001 | 5,000,000 | 30% |
5,000,001 | Higher | 35% |
Deductible Expense
Years in Possession | Deductible |
|---|---|
1 | 92% |
2 | 84% |
3 | 77% |
4 | 71% |
5 | 65% |
6 | 60% |
7 | 55% |
8 or more | 50% |
For a better illustration, please see the exemplified case below
A land is assessed by the government to be valued at THB5,000/sq.m. Total area of the land is 2,000 sq.m. The seller has possessed the land for 2 years.
Withholding tax calculation:
Item | THB |
|---|---|
Income | 5,000 * 2,000 = 10,000,000 |
Deductible expenses | 8,400,000 (84%) |
Net income | 1,600,000 |
Net income per year | 800,000 |
Net income tax per year | 75,000 |
Withholding tax | 75,000 * 2 = 150,000 |
Rental
- Net income: Annual rental income after deductible expenses * tax rate
– Deductible expenses can be 30% flat rate or actual rate with supporting documents required. - All rental properties are subject to a Building and Land Tax, which is 12.5% of the annual rental income.
Assuming you rent out a 1 bedroom in Ekamai with a monthly rate of THB30,000. Annual rental income is THB360,000.
Item | THB |
|---|---|
Income | 360,000 |
Deductible expenses | 108.000 |
Net income | 252,000 |
Personal income tax | 5,100 |
Building and Land Tax | 45,000 (12.5% * 360,000) |
Total Tax | 50,100 |