Which taxes will I be required to pay in Thailand?

Your property investment may be subject to the following taxes and fees:

1)      Transfer fee (one time):

2% of the land office appraised value of the property.

2) Withholding Tax (one time):

1% of the land office appraised or the actual transaction value of the property (whichever is higher) if the Seller is a juristic person. This is a withholding tax and it is credited to (i.e. deducted from) the company’s income tax payable for that year. If the seller is an individual, personal income tax is charged at progressive rates (0% to 37%), based upon the appraised value of the property.

3) Stamp Duty or Specific Business Tax/Local Development Tax (one time):

Stamp Duty: 0.5% of the land office appraised or the actual transaction value of the property (whichever is higher).  In general, the Stamp Duty will apply if the land has not been transferred within the last five years (for Thai nationals: two years), otherwise the Specific Business Tax/Local Development Tax will apply.

or

Specific Business Tax/Local Development Tax: 3.3% of the land office appraised or the actual transaction value of the property (whichever is higher).

4) Land and House Tax (annual)

Land and House Tax is imposed on the owners of a house, building, structure and/or land except with respect to the primary residence of an individual. The tax rate is 12.5% of actual or assessed annual rental value of the property. The annual value is the amount of rental income that a property may reasonably generate over one year, if the property is offered for lease.

5) Local Development Tax (annual)

This tax is imposed upon any person who either owns or is in possession of land. The tax rates vary according to the appraised value of the property being determined by the local authorities. There is an allowance granted for land utilized for personal dwellings. This allowance differs according to the location of the land.

6) Personal or Corporate Income Tax (annual)

Income tax (corporate or personal) is incurred by the owner of property when income is derived from the property. Such income may take the form of rental return or profit in case of resale of the property.

7) Lease Registration Fees

1.1% of the total rental income under the long-term lease agreement.