Or try our advanced search.

Why must I pay Business Tax when selling my condo?

Why do I have to pay business tax over the selling price of my condo. I'm selling my own privately owned condo, owned in my own name, not a business, no inestment purposes. I do not make a profit on the sale. Still the agent handling the sale says I must deduct 3,3 % business tax from the sale proceeds and pay this to the land office. Is this correct? Are there no exemptions for foreigners who are just in Thailand for holidays?
Category: Buying a Condominium
sbt business
Asked 11 years ago
Mr. Martin
bangkoklawonline

Answers (1)

Foreigner in Thailand are subject to payment of taxes over income from Thai sources, regardless of payment location. When you sell your condo you must pay personal income tax and specific business tax in addition to the transfer fee. As for specific business tax, when a privately owned condo (foreign or Thai owned) is sold within 5 years from the date of acquisition the sale is under the revenue code considered a 'sale of an immovable property in a commercial or profitable manner' (section 91 bis Revenue Code) and specific business tax must be paid at a rate of 3.3% calculated over the government appraised value of your condo unit or the actual sale price, whichever is higher. Appraissed government value means the once every 4 years assessed market value of your condo in the opinion of the Land Department and Treasury Department. The transfer is exempt from specific business tax when the condo is transferrred without consideration for example by inheritance to a legal heir or the owner transfers the condo to a legitimate child or when a privately owned condo is sold after 5 years from the date of acquisition. Note the reference link below relating to the gift of a foreign owned condo to a legitimate (foreign) child. When you must pay specific business tax you do not have to pay stamp duty, when you do not have to pay specific business tax you must pay stamp duty
Answered 11 years ago
Nad
Please register/login to answer this question.  Click here to login