Know tax and fee before buy and sell property
Properties investment is one of the interesting choices whether leasing or selling to get profit from its difference. However, there are tax, and other concerning fees regarding selling the property. This article is about what do general people who sell property must pay for.
If you inherit that property or receive by affection, the deductible expenses are 50%.
Possession period (year) is counted as a fiscal year which is counted from 1st January to 31st December of that year and any buy and sell in the same year is counted as 1-year possession. Also, possessing from this December to next year March is counted as 2 years.
In the case of selling the property without aiming for profit, a maximum withholding tax is 20% of the selling price. On the other hand, there is no tax limitation for selling for profit. Moreover, property outside Bangkok, municipal district, sanitation district, and Pattaya is granted 200,000 tax exemption and the rest will be calculated for withholding tax.
Withholding tax calculation example
Mr. Rich bought the land in June 2012 and sold in January 2019 as 4,000,000 Baht.
* Selling property tax calculation is no an exemption for the first 0 - 150,000 Baht
** Possession year count an incomplete year as 1 year and possession over 10 years is counted as 10 years. However, the seller can select tax payment as calculating by withholding tax for selling without aiming for profit and will not be added in other personal income.
From the above example, all expenses are shown as below,
Nipapun Poonsateansup CFP®
Independent Finance Planner and Public Speaker