Phuket Property & Land Taxes

Phuket Property – Land Taxes

Relevant taxes and fees should be considered with utmost importance, paying all the government fee and taxes as per the required time frame provides you with the entire important legal cushion for easy and smooth transfer of the property. It also saves you from all the legal hassles which are associated with the nonpayment of government fees and taxes.

Transfer Fee

This fee is based on the appraised value of the actual property and is mostly shared equally between both the seller and the buyer, although this arrangement needs to be agreed by both the parties.

Lease Registration Fee

This fee is based on the total payable rent over the term of the lease, and is mostly shared equally between the lessees and lesser, although this again must be agreed by both parties.

Phuket Property – Land Taxes . Specific Business Tax

Phuket Property & Land Taxes x

Specific Business Tax (SBT) is payable by both the companies and the individuals who have owned the said property for less than a period of five years. It is also based on the contracted price or the official appraised value, whichever is higher.

Stamp Duty

Stamp Duty fee is only paid when the SBT is not applicable and is completely based on the official appraised value of the property or the contracted price, whichever is higher.

Property Taxes

Once you have acquired the said property, there are mainly 2 different types of tax that are levied on property in Thailand that you need to be completely aware of

Land Tax

This is an annual tax fee which is levied on the land ownership and is equivalent to just a few Baht per rai for all properties that are held as private residences. For all properties that are held by companies the tax implications can be significantly higher. Under the current legislation system the property owner has to pay the required tax at the local tessaban or the local government office every year.

Phuket Property – Land Taxes . Structures Usage Tax

This form of tax only applies to the properties which are being used for commercial purposes or as rental properties. This tax is applicable at the rate of 12.5% on the actual rent or as assessed gross rental value of the property. However, this value is very well below the commercial market value for rent.