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  1. #1
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    New law tax leasing ?

    Hello,

    I did last year a leasing contract to buy a land to Krabi with my thai girlfriend and now she is my wife . I just received a mail from my lawyer, do you heard about it ? Do i have to pay ? Thanks a lot for your advice, i don't really know what to do

    It has come to our attention that the Tax and Revenue Department in Krabi has changed
    its policies with regards to Long Term Leases on land and property.
    It has been a common practice for many foreigners to use a Thai national to purchase
    land or a home and then have the Thai national issue a 30 year Long Term Lease to the
    foreigner. Often this transaction was between Thai wife and foreign husband to secure the
    husband's rights to the property.
    Until recently, the Tax and Revenue Department has ignored these transactions, but now
    they are assessing a personal income tax on the Thai national who issued the Long Term Lease
    with the tax- based on the assessment price of the lease registered at the Krabi Land
    Department.

    As a Thai national, if you have issued a Long Term Lease to a foreigner in the last two
    years, you are liable, and may be assessed personal income taxes on the "income" as shown on
    the Long Term Lease. If you plan to enter into an agreement in the future, we strongly advise
    you seek the advice of a registered accountant to determine your liability.
    If you have any additional questions, please feel free to contact us.

  2. #2

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    dirtydog's Avatar
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    Any lease over 3 years is taxed.

  3. #3
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    Smile taxe

    Quote Originally Posted by dirtydog View Post
    Any lease over 3 years is taxed.
    Really it's new ? I have to pay every year ? How much ? Thanks

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    dirtydog's Avatar
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    Nope, not new, been like that for at least the past 20 years, thats why 3 year leases are so popular, anything over 3 years has to be registered and tax paid.

  5. #5
    FarangRed
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    Basically what he means if you keep the lease to 3 years it does not need to be registered at the land department. many Thais do it on shop house and bars

  6. #6
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    taxes

    Quote Originally Posted by dirtydog View Post
    Nope, not new, been like that for at least the past 20 years, thats why 3 year leases are so popular, anything over 3 years has to be registered and tax paid.

    Thanks again, but i paid already taxes when i registered my leasing contrat 1 year ago, so now i have to pay every year ?

    Thanks a lot for your explanations

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    Quote Originally Posted by fred2krabi
    so now i have to pay every year ?
    In most countries the tax man wants your money every year, I don't know of one country where you would have to pay 30 years tax in advance, as much as they would like that, of course tax has to be paid every year.

  8. #8
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    taxes

    Quote Originally Posted by dirtydog View Post
    Quote Originally Posted by fred2krabi
    so now i have to pay every year ?
    In most countries the tax man wants your money every year, I don't know of one country where you would have to pay 30 years tax in advance, as much as they would like that, of course tax has to be paid every year.
    I paid taxe to the land office the fisrt time when i registered the leasing contract but i don't know too if it was for one year or not, i never heard about it....

  9. #9
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    Hi,

    And what do you think would happen if you don't pay every year ?

    I'm usually successful when playing dead/invisible in this country, but any chance with the tax office ?


    Cheers.

  10. #10
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    taxes

    Quote Originally Posted by dirtydog View Post
    Quote Originally Posted by fred2krabi
    so now i have to pay every year ?
    In most countries the tax man wants your money every year, I don't know of one country where you would have to pay 30 years tax in advance, as much as they would like that, of course tax has to be paid every year.
    Ok but the land office or taxe office never contact or my wife to pay this taxe so should i wait ? What happen if i don't go to the office ?

  11. #11
    FarangRed
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    Tax on a lease contract is 1.1%, depending how long your lease is for you can also pay upfront and that way does also protect your lease, so lets say you paid 10 years and get it written in the contract at the land department then you are protected for 10 years so to speak.

  12. #12
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    taxes leasing contract

    Quote Originally Posted by FarangRed View Post
    Tax on a lease contract is 1.1%, depending how long your lease is for you can also pay upfront and that way does also protect your lease, so lets say you paid 10 years and get it written in the contract at the land department then you are protected for 10 years so to speak.
    Thanks for your advice, so you think i should go to the land office to pay the taxes, if i don't do it do you think they will send me the bills ?
    The leasing contract i signed is for 30 years....

  13. #13
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    When you registered your lease ( 30 years? ) you paid the tax then. This new tax is for your wife. Either you haven't included the rate, or they haven't figured it out but it will be based on the value of the lease.

    Odd how just Krabi is doing this, I imagine the other provinces will be doing the same soon.
    I'm still waiting for them to audit fake companies as was threatened 1- 2 years ago. Or are they ?

  14. #14
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    taxes

    Quote Originally Posted by KAPPA View Post
    When you registered your lease ( 30 years? ) you paid the tax then. This new tax is for your wife. Either you haven't included the rate, or they haven't figured it out but it will be based on the value of the lease.

    Odd how just Krabi is doing this, I imagine the other provinces will be doing the same soon.
    I'm still waiting for them to audit fake companies as was threatened 1- 2 years ago. Or are they ?
    Hi, yes i paid some taxes when i signed the leasing contrat for 30 years, no problem we will wait for the office send us the bill, anyway they have our adress...

    Thanks

  15. #15
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    amount taxes

    Quote Originally Posted by FarangRed View Post
    Tax on a lease contract is 1.1%, depending how long your lease is for you can also pay upfront and that way does also protect your lease, so lets say you paid 10 years and get it written in the contract at the land department then you are protected for 10 years so to speak.
    Hello,

    So what's that mean ? My leasing contract is for 30 years = 600.000 baths so (600.000 X1.1) /30 = 110 bahts/year ?

    Thanks again

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