Personal income tax is the main tax to be aware of when selling a property in Thailand. Depending on your annual income, taxation will range from 0% up to 35% (see chart below).
This is payable to the Thai government (land office) upon the sale of your property on the appraised value or the contract value (whichever is higher) and takes into account how many years you have owned the property.
Furthermore, sellers also need to take into account the deductible expenses (shown below). The baseline taxable rate is derived from the gross income, minus the deductible expenses, resulting in the net income figure. This figure is where the personal income taxed is calculated from.
Example: Withholding Tax (WHT) & Income Tax
Condo with a government appraised value of 6,665,755.50 THB
Seller has owned property for 3 years (77% standard deduction of expenses)
6,665,755.50 THB - (77% of 6,665,755.50 thb) = 1,533,123.80 thb
1,533,123.80 / 3 years = 511,041.30 thb yearly assessable income
Yearly assessable income = 511,041.30 thb
The First: 300,000 x 5% = 15,000 thb
The Second: 200,000 x 10% = 20,000 thb
The remaining amount: 11,041.30 x 15% = 1,656.20 thb
Assessable personal income tax per year (15,000 + 20,000 + 1,656.20) = 36,656.20 thb
Seller acquired the property for 3 years meaning that income tax per year is: 36,656.20 x 3 = 109,969 thb
Seller to Pay: 109,969 thb