Real Estate Tax
SBT, VAT, WHT, CIT and cash planning for tax
- Tax mechanics and revenue recognition on the ownership transfer dayThe sequence of SBT, WHT, revenue, COGS, profit per unit and CIT on condo transfer day, with a per-unit exampleTransfer & Closing
- Tax reconciliation and PND 51Reconcile accounting profit with taxable profit, add back non-deductible expenses, use accumulated losses and test the 25% estimate thresholdConstruction, Transfer & Closing
- Transfer tax checklist per unitA checklist of taxes, fees, cash and accounting items to review before registering the transfer of each unit, with a worked calculationTransfer & Closing
- Tax traps: cash vs. revenueWhen the down payment comes in first but CIT follows the transfer day, with a per-unit example and 4 safeguardsFunding & Presale, Transfer & Closing
- Corporate income tax traps in projectsWhen the year-end accounts look good but there is no cash to pay CIT: the effects of surcharges, asset seizure, loans and customers, and the ways outTransfer & Closing, Exit & Hold
- Tax reserve accountThe set-aside formula, account structure, reconciliation and bookkeeping for a developer's taxesFunding & Presale, Construction, Transfer & Closing
- Specific Business Tax (SBT) of 3.3% on real estate salesWho is liable, the tax base, rate, payment timing, down payments and the 5-year exemption, with examplesLand & Feasibility, Transfer & Closing
- Tax risk control system for real estate businessesA five-stage tax control framework from setting up the SPV to closing the project, with risk levelsLand & Feasibility, Funding & Presale, Construction, Transfer & Closing, Exit & Hold
- Approach to calculating CIT from WIP to COGSCalculate profit and CIT over several years, use accumulated losses across 5 accounting periods and read the ETR throughout the projectConstruction, Transfer & Closing
- Pre-Opening VAT RefundSeparating the input VAT of a VAT-registered business from real estate sales, with the steps and risk pointsConstruction
- Year-end closing in years with ownership transfers6 steps from transfer day to COGS, profit, accumulated losses and CIT, plus the PND 51 and PND 50 calendarTransfer & Closing
- Cash impact on transfer day and at year-end closingThe case of a fully paid unit: cash flow statement, financial position, SBT, WHT and CIT preparationFunding & Presale, Transfer & Closing
- Concepts and assumptions for preparing the PND 51 estimateAn estimate framework built from the transfer plan, revenue, costs, adjustments, accumulated losses and WHT creditTransfer & Closing
- Tax practice: selling a condominium with furnitureSBT of 3.3% and VAT of 7%, contract structure, tax point, transfer day procedure and controls when selling a condominium unit with furnitureFunding & Presale, Transfer & Closing
- Surprise year-end tax: where it goes wrongWhy year-end corporate income tax is higher than expected, from taxable profit and PND 51 through to tax credits
- Input VAT where the business sells under both SBT and VATSeparating input VAT pools, the averaging rule under Section 82/6 and Notification No. 29 for condo developers with both VAT and SBT revenueFunding & Presale, Construction, Transfer & Closing
- Real estate sales commission: 4 casesTax, accounting, documents and review of commission paid to Thai juristic persons, individuals, foreign agencies and employeesFunding & Presale, Transfer & Closing
- BOI: check that privileges match the business before putting them in the modelChecking the business activity, real estate and hotels, privilege ceilings, separate accounts and cost allocation for companies holding a BOI certificateLand & Feasibility
- Paying commission abroadPND 54, PP 36, gross-up, treaty conditions, CAC recording, remittance and controlsFunding & Presale, Transfer & Closing
- Post-BOI Tax Cliff: preparing for the year the tax privileges expireEffects on CIT, cash, dividends and Covenants when BOI privileges expire, with a 36-month advance planExit & Hold
- Buying land for THB 100 million: calculating transfer-day costs correctlyItemising the transfer fee, SBT, stamp duty, WHT and mortgage registration fee on a land purchase, with the effect of a contract that makes the buyer bear the costsLand & Feasibility
- Selling land: SBT, net proceeds and holding structureComparing the net proceeds of a land sale by an individual and by a company, how long to hold, and the scope of lawful planningLand & Feasibility, Exit & Hold