Determining Withholding Tax on Selling a Condominium

Thinking of selling your condominium? Are you having trouble calculating the withholding tax? We at Sunbelt Asia Legal Advisors are here to help you. When you sell real estate property like a condominium, you must pay personal income tax. The tax is applicable on the profit you have made from the transaction at the Land Department. As there are many factors that must be considered, the calculation of the withholding tax is difficult.

Here are the steps through which you can easily calculate the value of the withholding tax.

Calculating the Withholding Tax

 Step 1

The first thing the Department of Land does is compute the seller’s net annual assessable income. The formula used to calculate the income is:
(Assessed Value – Lump sum expenses per year of ownership) / Years of Ownership = Net Assessable Income per year.
The deduction of the lump sum expenses is between 92% to 50%. This greatly depends on the number of years of ownership. The deduction is as follows:

  • For 1 year of ownership, 92% is deducted
  • For 2 years of ownership, 84% is deducted
  • For 3 years of ownership, 77% is deducted
  • For 4 years of ownership, 71% is deducted
  • For 5 years of ownership, 65% is deducted
  • For 6 years of ownership, 60% is deducted
  • For 7 years of ownership, 55% is deducted
  • For 8 years of ownership, 50% is deducted

Step 2

The next is to determine the annual personal income tax that the seller must pay because of the sale. After calculating the net assessable income, the Land Department must compute the annual personal income liability. This is based on the progressive Tax Rates, they are:

  • 5% tax rate for 0 to THB 100,000
  • 10% tax rate for 101,000 to THB 500,000
  • 20% tax rate for 500,001 to THB 1,000,000
  • 30% tax rate for 1,000,001 to THB 4,000,000
  • 37% tax rate for THB 4,000,001 and more.

You must know that the Land Department does not us the Revenue Department’s income tax table. The reason is that the Department of revenue provides the buyers a lump sum deduction.

Step 3

The last step is to calculate the personal income tax that is due by the seller over the period of ownership. This step is simple and easy that requires you to multiply the number of years of the ownership by the neat annual personal income tax. As a result of this, you will get the total amount paid to the Land Department by the seller.

How Sunbelt Asia Legal Advisors Can Help You

We at Sunbelt Asia Legal Advisors can help and guide you through the whole process of withholding tax. Our experts have comprehensive knowledge of the policies, calculating the withholding tax is easy for us. We are always ready and willing to help you.

Therefore, if you want to sell your real estate property, we are the right choice. We at Sunbelt Asia Legal Advisors makes the process easy and convenient for you. you can get the first free consultation, call us now at (+66) 02-662-7004.

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