Khun Jean

Why is in Thailand lying about the sale price at the land office 'normal'?

25 posts in this topic

12 hours ago, amjamj said:

Hello,

 

Can we go to land office and ask the appraised price of a condo or house ?

 

Thanks.

Yes. But only useful for knowing the amount of taxes and duties payable in the event of a sales.

 

The assessment value does not take into consideration the state of the condo or house, nor the interior.

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On 4/7/2017 at 10:48 PM, Khun Jean said:

From what i understand the assessed value of the land is what is used for determining the transfer fee (buyer) and the withholding tax (seller).

The Special Business Tax (seller) or when owned for more then five years the stamp duty (seller) is based on the actual selling price.

When land is owned more then five years the difference in what have to be paid is only 0.5% over the difference between the real and assessed value.

As such it should only be a small amount, maximum in the 10's of thousands.

 

How is income tax determined?

Is it based on profit (difference between the price you bought and are now selling) or just on the assessed value?

 

The withholding tax is determined using the assessed value. This could then be higher or lower then the taxes over the real income and you should be able to get a refund if the withholding tax was too high.

 

 

Is  the transfer  fee  (buyer), withholding  tax  (seller)  independant  of the  Special Business  Tax and  applied  to  Business  only?

Would  appreciate   being  pointed  to an  English  language  site  that  explains   it  all.

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My wife earlier purchased some land in a rural area. When the chanote was done and fees paid for, she received the government forms which state the price paid for the land, the government valuation of that land and the tax due based on the valuation.

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What implications could an understated purchase price have for the buyer?

 

Current withholding tax does not take the historical purchase price into consideration. Not reading the news regularly, the government is in the process of revamping land and property taxes. 

Could we see a move to an internationally more common scheme where tax is paid on the difference between selling and historical purchase price?

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2 hours ago, John Singer said:

What implications could an understated purchase price have for the buyer?

 

Current withholding tax does not take the historical purchase price into consideration. Not reading the news regularly, the government is in the process of revamping land and property taxes. 

Could we see a move to an internationally more common scheme where tax is paid on the difference between selling and historical purchase price?

I doubt it. As you have mentioned, prices can be still be understated, historical and present.

 

The new tax system would still be based on the assessment value of the Land Dept.

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Simple.  Land transfer taxes, payable by the seller are calculated on the price te land was sold for.  Lie the sale pricedown.  Pay less tax.

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4 hours ago, The Deerhunter said:

Simple.  Land transfer taxes, payable by the seller are calculated on the price te land was sold for.  Lie the sale pricedown.  Pay less tax.

Where did this info come from? Land transfer taxes which are normally payable by the buyer is not based on the sale price.

Only the SBT/Stamp duty is based on the sale price. Hence lying about the sale price makes very little difference overall especially when the land was owned by the seller for 6 years or longer.

 

 

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On 4/22/2017 at 9:56 AM, trogers said:

In our office they ask the vendor how much he sold for and the date of sale.  Of course all sales are years in the past and all at old low low prices.   Anybody surprised????

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