Structure Usage Tax is imposed in respect of house, apartment or simply building, put to commercial use. The tax rate is 12.5% of the assessed annual rental value of the property.

Sale and Purchase

The following fees and taxes are imposed at the Land Department during a transaction of sale and purchase of land.

• Transfer fee = 2% of the assessed value
• Corporate Income Tax (Withholding) = 1% of the *registered value, if the seller is a juristic person
• Specific Business Tax = 3.3% of the *registered value

If the land has been held by the seller, who is an individual and not juristic person, for more than 5 years, Stamp Duty = 0.5% of *registered value will be imposed in place of the above Specific Business Tax.

Other fees include application, administrative, power of attorney, registration and witness fee, etc. which normally comes to a negligible amount.

*It is a local practice to declare a sale and purchase price (registered value) which is much lower than the actual market price during a transaction at the Land Department. Please contact your qualified Thai attorney for proper and accurate advice.

The above taxes and fees are similarly applied to sale and purchase of a building (house, villa etc.) except that the registered value is based on the size of the building, according to the original building permit, and the number of years the building has been constructed, etc.

Collectively the above taxes and fees are commonly referred to as transfer costs. Legally speaking, the seller is responsible for the Corporate Income Tax and the Specific Business Tax only while the responsibility of the rest of the fees remains open. Thus it is a very common practice for both the seller and purchaser to negotiate which party shall bear and pay the full transfer costs. In some instance, both parties may even agree to share equally the said costs. Please contact your qualified Thai attorney for proper and accurate advice.