Thailand Expats

stevem · #1 26-01-2007, 16:21

OK we have finally sold our house, now my misses has been told that because we have not owned it for 5 years (only 3 years) we will have to pay some sort of tax equivalent to around 100K.

When we brought the house we were told about this tax requirement, but back then it was 12 months.

The misses isnt sure of all the details of the tax as yet, but has anyone else come across this, and can enlighten me.

sting · #2 26-01-2007, 17:10

hello stevem
i have this link
Thailand Real Estate & Property Guide - What Taxes and Costs are Applicable to Purchasing a Property?

Whenever a property in Thailand is bought and sold, there are four taxes that need to be taken into account
3.Specific Business Tax of 3.3% of the assessed value or the sale price - whichever is higher - this will be applied to all sales by companies and to any private sales that occur within 5 years of the date of purchase.

stevem · #3 01-02-2007, 13:42

OK so now here's another only in Thailand moment we encountered selling the house.

Back when we brought the house, I had to sign a paper basically saying that the property belongs to the misses and I have NO rights to it. Its a standard thing that all farang have to do, no problems there. It also states that the property was purchased with my wifes funds and that I contributed nothing. Well if they really do believe that, then they are stupider than I thought.

Anyway today the misses goes into the bank to arrange everything for the sale, and she is told that I also need to sign. What the fvck, but I have absolutely no rights to the property, but they want my signature and in person.

Also they drop another bomb, in that because my misses has a farang name, or maybe more correctly is married to a farang, the tax we have to pay on sale is increased. By this stage I didnt listen to what the increased rate was, as I was so bloody pissed off, it didnt really matter.

I AM SO FVCKING GLAD I DONT LIVE THERE ANYMORE

LivinLOS · #4 01-02-2007, 14:52

Yeah I have heard about 2 tier tax rates.. Also that sometimes as well as the house sale that (if they think they can get away with it) they claim that the capital gains on the property (after the tax) is then income for the owner and they need to pay income tax on it that year.

AFAIK this isnt the legal way but they just go as much as they can.. Its this totally moving goalposts set of issues that complicates everything. Only heard this being told to farangs tho.

I know another farang who developed and owns a bit of stuff around.. He was always using the company ownership route and always would avoid the land ownership transfer tax, the 3% sales tax, every other tax by merely createing a change of director and letting the new purchaser have the company. .As the company owns the land this effectively created a land ownership transfer but without any of the transfer tax issues. Of course now with farang minor % directors god knows whats happening.

aussie dollar · #5 01-02-2007, 14:55

so a quick trip is on the cards stevem ?

stevem · #6 01-02-2007, 15:01

No at this stage, what we are thinking of doing is waiting another [insert number of months] and then transfer the title to Lai's son, and then sell it. This will solve all problems and means minimal tax payment.

LivinLOS · #7 01-02-2007, 15:05

Doesn't the transfer of ownership result in another tax no matter who it changes hands to ??

I have no knowledge on this but personally see no difference between moving it to a family member, or a cousin or a red headed stepchild.. I (as a westerner) would simply assume a change of owner incurs a transfer tax.

stevem · #8 01-02-2007, 15:57

Quote:

Originally Posted by LivinLOS

Doesn't the transfer of ownership result in another tax no matter who it changes hands to ??

I have no knowledge on this but personally see no difference between moving it to a family member, or a cousin or a red headed stepchild.. I (as a westerner) would simply assume a change of owner incurs a transfer tax.

Will obviously need to double check, but according to the misses she can transfer to her offspring without anything. Will wait and see what really happens.

Mav · #9 01-02-2007, 18:42

Sounds like a problem only a bottle of Buindy will fix Steve....or have you stopped drinking now that u r no longer in the Mod Squad?

stevem · #10 02-02-2007, 02:29

Quote:

Originally Posted by Mav

Sounds like a problem only a bottle of Buindy will fix Steve....or have you stopped drinking now that u r no longer in the Mod Squad?

Sounds a bit crazy, but havnt had any bundy since leaving Phuket. Downed a few Carlton Draughts though last night. Tried to explain to my dogs what was happening, but they didnt seem to understand.

I still dont understand why they need my signature.

marc26 · #11 06-02-2007, 23:38

Quote:

Originally Posted by stevem

Sounds a bit crazy, but havnt had any bundy since leaving Phuket. Downed a few Carlton Draughts though last night. Tried to explain to my dogs what was happening, but they didnt seem to understand.

I still dont understand why they need my signature.

they understand Stevem
they understood that Papa was drunk last night

funny, had my 1st ever Carlton on the Cathay flight here
also had my 2nd-7th on that flight!!

Pussy Whipped · #12 11-02-2007, 01:42

[quote=stevem;283971]

Anyway today the misses goes into the bank to arrange everything for the sale, and she is told that I also need to sign. What the fvck, but I have absolutely no rights to the property, but they want my signature and in person.

Do you know what the document you had to sign said- (meant in English)?