When you buy property in Thailand there are a number of issues with regards to taxes. These are the taxes which may be applicable to your property purchase in Phuket or anywhere in Thailand. Speak to a property lawyer in Phuket for more information about property in Phuket and the transfer taxes.
- Transfer fees 2%
- Stamp duties 0.5%
- Business tax 3.3%
- Income Tax (the Thai equivalent to capital gains tax – a variable rate)
No you need to remember that most of the fees are calculated in relation to the Thai government’s “tax assessed value of the property” and this is just as in the west normally well below the true market value of the real estate.This would in the West be what we call municipal valuation.
Value Added Taxes
The VAT in Thailand has been set by the government at seven percent (7%), which has been reduced from the old tax rate of ten percent (10%) since April 1, 1999. now if you are starting a business in Thailand then you will be pleased to note that if your business has an annual turnover of less than 1.8 million baht then you are exempt from the VAT requirement.
Mainly the large stores in Thailand pay and charge VAT while most businesses don’t charge this tax. This is also not payable on unprocessed goods such as imported fertilizers, animal feeds and also newspapers. If you need tax advice in Thailand then call us now or speak to us online for more information on taxes in Thailand and how this affects your business venture in Asia.