Property Transfer Taxes

Example of how to calculate taxes and costs:

• Suppose that the government assessed price is 50,000 Baht per square meter
• All areas are 100 square meter
• The total assessed price is 5,000,000 Baht
• Actual selling price is 6,000,000 Baht
• The Seller possessed this property for 3 year

Withholding Taxes

The government assessed price = 5,000,000 Baht
Deduction with the expense of possession for 3 years for 77% = 3,850,000

Balance = 1,150,000 (5,000,000 - 3,850,000)
Divided by the 3 year of possession
Balance = 383,333.33 (1,150,000/3)

Taxation on progression rate
1 to 80,000 = exempt
80,001 - 100,000 = 5% (1,000)
100,001 383,333.33 = 10% (28,333.23)
Total = 29,333.23 (1,000 + 28,333.23)

Multiply by the year of possession = 87,999.69 (29,333.23 x 3)

In this case withholding tax is 87,999.69 Baht (A)

Government Fee for Transfer

2% is based on the government assessed price so 5,000,000 x 2% Balance = 100,000

Transfer fee is 100,000 Baht (B)

Stamp Duty

In this case is exempt. This is because transaction is subject to the specific Business Tax (possession of less than 5 year before sale).

Specific Business Tax

3.3% for Specific Business Tax based on the government assessed price or sale whichever is higher. In this case sale price is higher than government so 6,000,000 x 3.3% = 198,000.

Specific business tax is 198,000 Baht (C)

TOTAL EXPENSES ARE: 385,999.69 BAHT (A+B+C)