Why may the total rate of taxes and fees vary upon transfer of ownership.
The rates of transfer fee, Specific Business Tax, stamp duty, and withholding tax (where the seller is a legal entity) are established as a percentage of the property value.
If the seller is an individual, the withholding tax is calculated using a more complex formula and depends on the property value and the period of ownership.
Please note that calculations under this formula are approximate only.
To determine the exact amount of taxes and fees, we recommend contacting the Land Department immediately before registration of the transaction.
Withholding Tax Table. Seller is an Individual.
| Holding Period. (Each commenced year is counted.) | Deduction Rate. % | Annual Income Amount. THB per year. | Personal Income Tax Rate. % |
|---|---|---|---|
| 1 year. | 92. | 0 – 150,000. | 0%. |
| 2 years. | 84. | 150,001 – 300,000. | 5%. |
| 3 years. | 77. | 300,001 – 500,000. | 10%. |
| 4 years. | 71. | 500,001 – 750,000. | 15%. |
| 5 years. | 65. | 750,001 – 1,000,000. | 20%. |
| 6 years. | 60. | 1,000,001 – 2,000,000. | 25%. |
| 7 years. | 55. | 2,000,001 – 5,000,000. | 30%. |
| 8 years or more. | 50. | 5,000,001 and above. | 35%. |
Formula for Calculating Withholding Tax.
- Take the appraised value of the condominium unit.
- Deduct the applicable deduction percentage based on the ownership period.
- Divide the result by the number of years of ownership.
- Apply the personal income tax rate for one year.
- Multiply the annual tax amount by the number of years of ownership.
Example.
Property value: THB 3,000,000.
Ownership period: 1 year and 2 months. (Counted as 2 years.)
THB 3,000,000 – (THB 3,000,000 × 84%) = THB 480,000.
THB 480,000 ÷ 2 = THB 240,000.
(THB 240,000 – THB 150,000) × 5% = THB 4,500.
THB 4,500 × 2 = THB 9,000 total tax.
Alexandra Agapitova.
All rights reserved.
Copying or use of these materials without the prior written consent of the owner is prohibited.