A one-page summary of transfer day taxes, the tax treatment of each type of income and expense, withholding tax (WHT) rates and corporate income tax (CIT) rates
The rates and deadlines on this page are summarised from the handbooks for quick reference. Laws, rates and announcements may change; check the current version with the Revenue Department, the Land Department or an adviser before relying on them.
Taxes and fees on transfer day (seller is a juristic person)
Item
Rate
Base
Who normally bears it
Creditable
Specific Business Tax (SBT) including local tax
3.3%
Sale price or appraised value, whichever is higher
Seller
No
Transfer fee (freehold)
2.0%
Appraised value
As agreed in the contract; usually split equally
No
Lease registration fee (leasehold)
1.0%
Rent over the whole lease term
Per contract
No
Stamp duty on lease (leasehold)
0.1%
Rent over the whole lease term
Per contract
No
Withholding tax (WHT) for juristic persons
1.0%
Sale price or appraised value, whichever is higher
Seller
Corporate income tax (CIT) credit
VAT on sales of real estate subject to SBT
Exempt
—
—
—
Example in the handbook: Freehold totals 3.3% + 2% + 1% = 6.3% of the sale price (where the sale price is higher than the appraised value and the seller bears the full transfer fee). Leasehold totals 3.3% + 1% + 0.1% + 1% = 5.4%. Use the transfer day costs calculator to calculate based on the actual facts.
Tax on different types of income
Type of income
VAT
SBT
WHT deducted
CIT
Sale of condominium units (freehold / leasehold) / vacant land
Exempt
3.3%
1% (at the land office)
20%
Furniture sold separately
7%
Not payable
Not deducted
20%
Hotel rooms, and food and beverage
7%
Not payable
Not deducted
20%
Rental pool, property management fees, common area fees
7%
Not payable
5% (corporate customers)
20%
One-off sinking fund
Exempt
Not payable
Not deducted
Check against the actual facts
Interest income
Exempt
Check against the actual facts
1%
20%
Dividends between companies
—
—
Subject to the conditions of Section 65 bis (10)
May be exempt
Tax on common expenses
Expenditure
Input VAT
Deductible for CIT
WHT to be deducted
Construction costs (contractor)
7% refundable
Included in project cost
3%
Land cost
—
Included in project cost
—
Design, consulting and legal fees
7% refundable
Deductible / included in cost
3%
Sales commission
7% refundable
Yes
3%
Advertising costs
7% refundable
Yes
2%
Office rent
—
Yes
5%
Interest paid to financial institutions
—
Deductible / capitalised under TAS 23
Depends on the type of recipient
Service fees and royalties paid abroad
PP 36 (remitted on behalf of the payee)
Yes
15% or the treaty rate
Entertainment expenses
Limited
Not exceeding the limit prescribed by law
—
Building depreciation / FF&E
—
At the rates prescribed by law
—
Commonly used withholding tax rates
Type of payment
Rate
Contract work, construction costs
3%
Professional service fees
3%
Commission
3%
Rent of buildings or land
5%
Advertising costs
2%
Transport fees
1%
Non-life insurance premiums
1%
Interest paid to juristic persons
1%
Dividends
10%
Payments to overseas recipients (general)
15% or as per the treaty
Rates apply where the recipient is a Thai juristic person, unless stated otherwise. Rates for certain types of individuals differ. The e-Withholding Tax system may reduce the rate for some items.
Corporate income tax
Case
Rate
Conditions
Typical rate
20%
Net profit
SME with net profit not exceeding THB 300,000
0%
Subject to SME conditions
SME portion exceeding THB 300,000 up to THB 3,000,000
15%
Subject to SME conditions
SME portion exceeding THB 3,000,000
20%
—
BOI-promoted business
Exempt depending on the type of business
Period and ceiling as per the promotion certificate