Chirayuthchai TraisaengsatheanStrategic Finance for Property Development

Transfer tax checklist per unit

A checklist of taxes, fees, cash and accounting items to complete before registering the transfer of each unit, with a worked example

Key takeaways

The transfer tax checklist per unit brings taxes, fees, cash and accounting entries together in one document. Prepare it 2-3 weeks before the transfer appointment so that the cash is ready and the entries can be booked immediately. A corporate seller must factor in 1% WHT, which is a tax credit but is cash that leaves on transfer day.

What this checklist is

On ownership transfer day, cash flows in and out at the same time in the largest amounts of the whole project cycle. Without preparation, the consequences go beyond delay: tax may be miscalculated, funds may fall short on the day of the appointment, or the accounting entries may be wrong. The per-unit checklist therefore controls four areas:

  1. Finance: know the cash amount to prepare in advance
  2. Tax: check the base, the rate and the amounts already paid
  3. Accounting: be ready to recognise revenue and release WIP to COGS
  4. Audit: have evidence ready to show the Revenue Department and the auditor

When SBT is paid: in ruling Kor Khor 0706/10580, the Revenue Department stated that a seller of real estate as a trade or for profit files the return and pays SBT at the time of registering the rights and juristic acts, and does not need to file monthly PT 40 returns for this business. Booking deposits or down payments that form part of the price must be included in receipts on the registration date. If the project has previously paid SBT, consult the local revenue office about offsetting or claiming a refund, and prepare the evidence before the appointment date.

A simple example checklist

Part 1: Unit information

UnitA-205
BuyerMr A
Selling price per contract8,500,000
Appraised value6,200,000
SBT base (the higher amount)8,500,000
Booking deposit and down payments received2,600,000

Part 2: SBT

ItemBaseTHB
SBT including 3.3% local tax8,500,000280,500
Paid on transfer day if no SBT has been prepaid280,500

Part 3: Transfer fee

ItemBaseTHB
Standard 2% fee6,200,000124,000
Seller's share of 50% under the sample contract62,000
Buyer's share of 50% under the sample contract62,000

Part 4: Withholding tax (WHT)

CaseRateNotes
The seller is a juristic person1%Withheld on the registration date and used as a CIT credit
The seller is an individualUnder the special calculation methodCollected by the competent official at the land office
Commission paid domesticallyGenerally 3%The payer withholds and remits using the prescribed form

Part 5: Transfer day cash

ItemTHB
Received from the buyer or bank (8,500,000 − 2,600,000)5,900,000
SBT(280,500)
Seller's share of the fee(62,000)
WHT at 1% of the selling price(85,000)
Net cash on transfer day5,472,500

WHT on commission is not an extra amount on top of the commission; it is the portion remitted to the Revenue Department on the recipient's behalf, so it is not shown in this table. If the appraised value is higher than the selling price, check the WHT base with the land office.

Part 6: Post-transfer accounting entries

ItemDr.Cr.
Recognise revenueContract liability 2,600,000 and cash 5,900,000Revenue 8,500,000
Release WIPCOGS (unit cost)WIP
SBTSBT Expense 280,500Cash 280,500
FeeSelling Expense 62,000Cash 62,000
WHTTax Credit Receivable 85,000Cash 85,000
Estimated CITIncome Tax ExpenseCurrent Tax Payable

Part 7: Confirmations before transfer day

  • Confirm the current-year appraised value
  • Check whether the unit qualifies for the fee reduction measures
  • Confirm the SBT amount and the evidence, if SBT was previously prepaid
  • Prepare cash for SBT, WHT and fees
  • Confirm the tax reserve account is sufficient
  • Confirm the COGS per unit from the WIP system
  • Confirm the appointment date with the legal team and the land office
  • Notify the accounting team to prepare the journal entry
  • Update the CIT projection and the WHT register after transfer

Fee reduction measures

A Ministry of Interior announcement published in the Government Gazette on 1 Jul 2026 reduces the transfer fee from 2% and the mortgage registration fee from 1% to 0.01% each, from the date of the announcement until 30 Jun 2027. It applies to buyers who are individuals of Thai nationality purchasing residential property whose selling price and appraised value do not exceed THB 7 million per contract, with a mortgage amount not exceeding THB 7 million. Unit A-205, priced at THB 8.5 million, therefore does not qualify. Check the full announcement before applying it to each unit.

Conclusion

The transfer tax checklist is a pre-transfer preparation sheet that brings tax, cash and accounting together in one document. It is a simple tool that helps prevent errors that are hard to correct once registration is complete.