# Determining withholding tax on selling a condominium in Thailand.

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This is a guide on determining withholding tax on selling a condominium in Thailand.

Selling a real estate property, such as a condominium in Thailand, makes the individual seller liable to pay personal income tax. Withholding tax applies to the gain the seller made at the time of the sale at the Department of Lands.

Since there are multiple variables in the equation (lump sum deductions and years of ownership), the calculation can be confusing without proper knowledge of the procedure.

Let’s see how it is calculated.

## Withholding tax calculation in three steps

### Step 1: The Land Department determines the seller’s net yearly assessable income

The formula for calculating net assessable income per year is (assessed value – lump sum expenses per year of ownership)/years of ownership

The lump-sum expenses deduction ranges from 50% to 92%, depending on the number of years of ownership.

 Years of ownership Deduction (%) One year 92% Two years 84% Three years 77% Four years 71% Five years 65% Six years 60% Seven years 55% Eight years or more 50%

For example, the assessed value is THB 7,995,000 and the number of years of ownership is seven years.

The calculation of the yearly net assessable income would be:

THB 7,995,000 – 55% (THB 4,397,250) = THB 3,597,750

THB 3,597,750 / 7 years = THB 513,964.30

Yearly net assessable income = THB 513,964.30

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### Step 2: Determining the yearly personal income tax due by the seller as a result of the sale

This step is based on the Department of Land progressive tax rates not the Revenue Department rates.

 Yearly net assessable income (THB) Tax rate 0 – 300,000 5% 300,001 – 500,000 10% 500,001 – 750,000 15% 750,001 – 1 million 20% 1,000,001 – 2 million 25% 2,00,001 – 5 million 30% More than 5,000,001 35%

The yearly net assessable income is THB 513,964.30; therefore, the tax rate will be 15%.

15% income tax of THB 513,964.30 is THB 77,094.645.

### Step 3: Overall personal income tax due by the seller on the period of ownership

This step only takes the amount calculated in the previous step and multiply it by the number of years of ownership.

77,094.645 (income tax) x 7 (years of ownership) = THB 539,662.515

Therefore, the withholding tax to be paid on selling a condominium will be THB 539,662.515.

The final amount is the amount to be paid by the seller at the Department of Lands. Depending on the seller, the amount due can become either a final tax payment or count against the personal income tax liability of the seller.

## Conclusion

Determining withholding tax on selling a condominium may be complicated when the seller is an individual. Discounts are provided and are based on the number of years the seller has lived in the property, the longer the seller owned the property, the higher the discount.

If you need guidance on calculating the withholding tax on selling a condominium, you can always get in touch with Acclime’s services.

### About Acclime.

Acclime is Asia’s premier tech-enabled professional services firm. We provide formation, accounting, tax, HR and advisory services, focusing on delivering high-quality outsourcing and consulting services to our local and international clients in Thailand and beyond.