Determining withholding tax on selling a condominium.

Selling a real estate property such as condominium makes the individual seller liable to pay personal income tax. This tax applies to the gain the seller made at the time of the sale at the Land Department, but since there are multiple variables in the equation (lump sum deductions and years of ownership), the calculation can be quite confusing without a proper knowledge of the procedure.

Calculation of the withholding tax in three steps

1. Land Department first determines the seller’s net yearly assessable income

Net Assessable Income per year = (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.

Number of years of ownershipDeduction %
< 1 year92%
> 2 years84%
> 3 years77%
> 4 years71%
> 5 years65%
> 6 years60%
> 7 years55%
> 8 years50%

2. Determining the yearly personal income tax due by the seller as a result of the sale

This step is done based on Land Department Progressive Tax Rates (not on Revenue Department Rates):

Yearly Net Assesable IncomeTax Rate
0 – THB 100,0005%
101,000 0- 500,000 THB10%
500,001 – 1,000,000 THB20%
1,000,001 – 4,000,000 THB30%
4,000,001+ THB37%

3. Overall personal income tax due by the seller on the period of ownership

This step is fairly easy as it only takes the amount calculated in the previous step and multiplies it by the number of years of ownership. The final amount is the amount to be paid by the seller at the Land Department. 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.

Did you find this article useful?

Share it with your friends or colleagues.

About Acclime.

As a leading provider of corporate services, we specialise in covering everything startups and established companies need to successfully start and operate their new business in Thailand. By seamlessly navigating our clients through the complexities of Thai bureaucracy, we allow them to fully focus on their business and operate it with peace of mind.

Did you find this article useful?

Share it with your friends or colleagues.

About Acclime.

As a leading provider of corporate services, we specialise in covering everything startups and established companies need to successfully start and operate their new business in Thailand. By seamlessly navigating our clients through the complexities of Thai bureaucracy, we allow them to fully focus on their business and operate it with peace of mind.

Questions? Speak to our experts.

We are available Monday – Friday 9am to 6pm (UTC+7).
© Acclime 2020 | Privacy policy