Key takeaways
- This part uses a hypothetical sample project to show how the principles are applied. It is not data from a real project.
- The case studies cover a Thai buyer, a foreign buyer with complete documentation, a cash buyer who was turned down, and a corporate buyer.
- This page summarises the logic only. It does not disclose the number of units, the project value or any details that could identify the project.
Chapter 20 Sample project structure
This chapter builds the sample project as a mixed-use development with both residential and hotel components, combining freehold and leasehold. It shows that the choice of sales structure depends on location, price, target customers and the foreign quota. Units in prime locations may suit freehold, while units to be sold to foreign buyers beyond the quota limit may use leasehold.
Pricing is based on customer segmentation and discount discipline. It should not look only at cost and profit per unit; it must also consider tax costs, the burden on foreign customers, renewal risk and the price the market will accept for leasehold rights.
On group structure, the handbook describes a holding company, a development company that sells the properties, a hotel and rental pool company, a building management company and a furniture company. Each company has a different tax status depending on its income. The asset map must answer who owns the land, the buildings, the leasehold rights, the common property and the equipment.
Arrangements between group companies, such as service fees, equipment rental, rental pool management fees and loans, need contracts, explainable pricing and an annual review. A good structure must match actual operations and should not be used merely to shift profit.
Chapter 21 Walk-through of ownership transfers across the project
This chapter walks through four transfer cases, from booking to after the transfer. The first is a freehold sale to a Thai buyer paying through a bank. The main work is personal documents, marital status, tax calculation and revenue recognition. This case takes the least time because there is no foreign currency work.
The second is a leasehold sale to a foreign buyer who remits funds in instalments. Every instalment has bank evidence and a reconciliation table. The key points are the name, the purpose of the remittance, an allowance for exchange rate movements, the power of attorney and the classification of the accounts under TFRS 16, which must be done before the transaction is recorded.
The third is a foreign buyer who offered to pay a large amount in cash but did not provide complete evidence of the source of funds. The sales team referred the matter to compliance, additional checks were carried out and management met, then decided not to accept the transaction and recorded the reasons. The conclusion is that reputation and legal obligations matter more than the sale of a single unit.
The fourth is a foreign juristic person buying freehold. This requires checking the beneficial owner, incorporation documents, signing authority, translation and certification of documents, the effect on the quota and evidence of incoming funds, so it takes longer than for an individual buyer.
Comparing all four cases, the principles remain the same; what differs is the complexity of the documents and the checks. The team should therefore classify customers by type from the booking stage and set the timeline according to actual risk.
Chapter 22 Project aggregate numbers
The final chapter consolidates the unit-level figures into a project view, building tables of revenue by sales structure, taxes and fees, cost of sales, profit and a quarterly cash plan. The aim is for readers to apply the template to their own projects. The figures in the full edition are illustrative, so this page does not use them as a benchmark.
CIT payable = taxable profit × 20% − WHT credits and prepaid tax
When reading the aggregate figures, separate profit from cash. Revenue is recognised on transfer, but a large amount of money is received beforehand. SBT and fees are paid on the transfer day, while CIT arises on taxable profit, and WHT credits reduce the tax only when there is enough CIT. The tax plan should therefore link to each unit's transfer schedule, PND 51 and PND 50.
At group level, recurring income must be added, such as hotel, rental pool and building management income, together with dividend payments, where the tax exemption conditions and WHT on payments to shareholders must be checked.
The concluding message of the handbook is that closing is an integrated task. Accuracy does not come from a single document but from policy, SOPs, the team, control tables and regular legal review. Before putting any of this into practice, adapt it to the facts of your project and consult a specialist.