Thailand Real Estate: Reduced Tax Rates
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In an effort to encourage the sustained growth of its burgeoning Thailand property sector, Thai officials deemed it necessary to further extend the period of reduced tax rates on property transfers.
This tax reduction policy continues those that were initiated two years ago when the Thai real property market experienced a slight decrease in demand. These reduced rates were supposed to expire on March 2009 but monetary officials have opted to extend them until March 2010. It is unlikely that the Thai government will extend this incentive again.
Taxes and fees commonly encountered while engaging in real property transactions usually take the form of transfer fees amounting to two percent (2%) above the registered appraised value of the immovable property at the Land Department; the Specific Business Tax amounting to one point one percent (1.1 %) over the registered value or actual sale price whichever is higher, provided that the seller is not an individual and has not possessed the property for more than five years before the transfer; otherwise, the said company shall be subject instead to a stamp duty amounting to zero point five percent (0.5%) over the registered or actual sale price or whichever is higher. The taxpayer may also be subject to withholding if the immovable property is acquired gratuitously by inheritance or gift or the transaction involved was done with profit in mind.
Specifically, the reductions cover the transfer fee rates commonly incurred while transferring ownership over real property that initially started from two percent (2%) to point zero one percent (.01%). The previous reduction of the Specific Business Tax from three point three percent (3.3%) to one point one percent (1.1%) has also been recently renewed to last until March 28, 2010. This move follows the announcement of the amendatory law allowing the reduction.
Fortunately, those who paid the Specific Business Tax according to its original rate previous to the announcement allowing the reduced rate are given the opportunity to apply for a refund provided that they request such with the Thailand Revenue Department.
ABOUT THE AUTHOR: Dennis P. Ramm
Dennis P. Ramm is Partner with Siam Legal International which is Thailand Largest Legal Services Network with offices in Los Angeles, London, Manila and Bangkok. Dennis works with American Attorneys, UK Solicitors & Barristers, German Lawyers, and Australian Solicitors providing Thailand Property legal services including Thailand Lease Agreement, Thailand Real Estate Due Diligence and Superficies in Thailand. Dennis has over 30 years of management, government and legal experience
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More information about Siam Legal International
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
Taxes and fees commonly encountered while engaging in real property transactions usually take the form of transfer fees amounting to two percent (2%) above the registered appraised value of the immovable property at the Land Department; the Specific Business Tax amounting to one point one percent (1.1 %) over the registered value or actual sale price whichever is higher, provided that the seller is not an individual and has not possessed the property for more than five years before the transfer; otherwise, the said company shall be subject instead to a stamp duty amounting to zero point five percent (0.5%) over the registered or actual sale price or whichever is higher. The taxpayer may also be subject to withholding if the immovable property is acquired gratuitously by inheritance or gift or the transaction involved was done with profit in mind.
Specifically, the reductions cover the transfer fee rates commonly incurred while transferring ownership over real property that initially started from two percent (2%) to point zero one percent (.01%). The previous reduction of the Specific Business Tax from three point three percent (3.3%) to one point one percent (1.1%) has also been recently renewed to last until March 28, 2010. This move follows the announcement of the amendatory law allowing the reduction.
Fortunately, those who paid the Specific Business Tax according to its original rate previous to the announcement allowing the reduced rate are given the opportunity to apply for a refund provided that they request such with the Thailand Revenue Department.
ABOUT THE AUTHOR: Dennis P. Ramm
Dennis P. Ramm is Partner with Siam Legal International which is Thailand Largest Legal Services Network with offices in Los Angeles, London, Manila and Bangkok. Dennis works with American Attorneys, UK Solicitors & Barristers, German Lawyers, and Australian Solicitors providing Thailand Property legal services including Thailand Lease Agreement, Thailand Real Estate Due Diligence and Superficies in Thailand. Dennis has over 30 years of management, government and legal experience
Copyright Siam Legal International
More information about Siam Legal International
View all articles published by Siam Legal International
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
