Change in tax base

Currently, under Section 49 bis of the Thai Revenue Code, where ownership or the right of possession to immovable property is transferred, the appraised value used for collecting registration fees under the land law on the date of the transfer shall be assessable for personal income tax purposes, regardless of the actual selling price or the market price which the property should fetch in a normal purchase or sale. This appraised value is usually much lower than the actual selling price or the market price of the property.

Keywords: Mazars, Thailand, Tax, Revenue code, Immovable Property, Personal Income Tax

6 December 2016

However, in the Cabinet meeting on 18 October 2016, the government approved a draft act to amend the Thai Revenue Code. According to this draft act, where ownership or the right of possession to immovable property is transferred, the selling price or the appraised value used for collecting registration fees under the land law on the date of transfer, whichever is greater, shall be assessable for personal income tax purposes.

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