Chirayuthchai TraisaengsatheanStrategic Finance for Property Development

Real estate tax rate summary table

A one-page summary of transfer day taxes, the tax treatment of each type of income and expense, withholding tax (WHT) rates and corporate income tax (CIT) rates

ReferenceOwnership Transfer Operations

Extracted from Real Estate Project Ownership Transfer Operations Handbook · Appendix C and I Tax Matrix / Quick Reference
Compiled from the Tax Treatment Matrix (Appendix C) and Quick Reference Cards (Appendix I) of the Ownership Transfer Operations Handbook, and the Thai Tax Planning Tables of the Strategic Financial Management Handbook

The rates and deadlines on this page are summarised from the handbooks for quick reference. Laws, rates and announcements may change; check the current version with the Revenue Department, the Land Department or an adviser before relying on them.

Taxes and fees on transfer day (seller is a juristic person)

ItemRateBaseWho normally bears itCreditable
Specific Business Tax (SBT) including local tax3.3%Sale price or appraised value, whichever is higherSellerNo
Transfer fee (freehold)2.0%Appraised valueAs agreed in the contract; usually split equallyNo
Lease registration fee (leasehold)1.0%Rent over the whole lease termPer contractNo
Stamp duty on lease (leasehold)0.1%Rent over the whole lease termPer contractNo
Withholding tax (WHT) for juristic persons1.0%Sale price or appraised value, whichever is higherSellerCorporate income tax (CIT) credit
VAT on sales of real estate subject to SBTExempt———

Example in the handbook: Freehold totals 3.3% + 2% + 1% = 6.3% of the sale price (where the sale price is higher than the appraised value and the seller bears the full transfer fee). Leasehold totals 3.3% + 1% + 0.1% + 1% = 5.4%. Use the transfer day costs calculator to calculate based on the actual facts.

Tax on different types of income

Type of incomeVATSBTWHT deductedCIT
Sale of condominium units (freehold / leasehold) / vacant landExempt3.3%1% (at the land office)20%
Furniture sold separately7%Not payableNot deducted20%
Hotel rooms, and food and beverage7%Not payableNot deducted20%
Rental pool, property management fees, common area fees7%Not payable5% (corporate customers)20%
One-off sinking fundExemptNot payableNot deductedCheck against the actual facts
Interest incomeExemptCheck against the actual facts1%20%
Dividends between companies——Subject to the conditions of Section 65 bis (10)May be exempt

Tax on common expenses

ExpenditureInput VATDeductible for CITWHT to be deducted
Construction costs (contractor)7% refundableIncluded in project cost3%
Land cost—Included in project cost—
Design, consulting and legal fees7% refundableDeductible / included in cost3%
Sales commission7% refundableYes3%
Advertising costs7% refundableYes2%
Office rent—Yes5%
Interest paid to financial institutions—Deductible / capitalised under TAS 23Depends on the type of recipient
Service fees and royalties paid abroadPP 36 (remitted on behalf of the payee)Yes15% or the treaty rate
Entertainment expensesLimitedNot exceeding the limit prescribed by law—
Building depreciation / FF&E—At the rates prescribed by law—

Commonly used withholding tax rates

Type of paymentRate
Contract work, construction costs3%
Professional service fees3%
Commission3%
Rent of buildings or land5%
Advertising costs2%
Transport fees1%
Non-life insurance premiums1%
Interest paid to juristic persons1%
Dividends10%
Payments to overseas recipients (general)15% or as per the treaty

Rates apply where the recipient is a Thai juristic person, unless stated otherwise. Rates for certain types of individuals differ. The e-Withholding Tax system may reduce the rate for some items.

Corporate income tax

CaseRateConditions
Typical rate20%Net profit
SME with net profit not exceeding THB 300,0000%Subject to SME conditions
SME portion exceeding THB 300,000 up to THB 3,000,00015%Subject to SME conditions
SME portion exceeding THB 3,000,00020%—
BOI-promoted businessExempt depending on the type of businessPeriod and ceiling as per the promotion certificate