taking profit and leaving

[STEVE G]

I’m still not clear on this, if you sell a property owned by a company are you liable for corporation tax on the net profit at 30%. If you are, how exactly is net profit calculated, is it the difference between purchase and sale price?

[STEVE G]

I’ve just spent some time on the Bank of Thailand website reading up on foreign exchange regulations.
I can’t find any regulation that allows a non Thai to take a sum of money out of the country greater than that which was brought in.
This appears to mean that if you sell property at a profit, you can’t repatriate any more than the initial sum even if you have paid corporation tax.
If I’ve read this wrong maybe somebody could point out which regulation allows this.

[Burger]

Steve,

I think you can take out any profits for which you have a Tax Certificate from Inland Revenue ??


Burger

[Guess]

I reckon if you go into a pub in West london and ask 3 homeowners how much stamp duty they would pay on a house costing £250,001 you would get 3 different answers.

Exactly. The pub is the last place to get information that is anywhere near accurate. The West London pub is somewhere to go to relax and listen to people talking complete bollocks which serves as personal amusement for yourself.

My philosophy is when I get sick I consult a doctor. If I want to learn to speak Thai I will consult an educated Thai person. If I want to take money out of Thailand I would consult a Forex/Fund Transfer expert.

The whole world's nations trade with each other in varying degrees and subject to certain logical and illogical regulations. It is always possible to transfer money from one country to another legally (assuming that one of the counties is not at war or currently occupied by another).

BTw, I believe what Burger said is correct but you do need a financial expert to steer you in the right direction.

I am sure that Tescos and Big C did not set up and fund Thai operations just for fun.

[Digger]

[quote="Guess"][quote="Digger"]I reckon if you go into a pub in West london and ask 3 homeowners how much stamp duty they would pay on a house costing £250,001 you would get 3 different answers.[/quote]

Exactly. The pub is the last place to get information that is anywhere near accurate. The West London pub is somewhere to go to relax and listen to people talking complete bollocks which serves as personal amusement for yourself.

You missed the point completely here,what I was trying to illustrate through the written word is that all answers to hypothetical questions refering to land and property purchases in Thailand are being answered by people who have gone down this road in thailand already and some of them are at odds with others in their answers.I stated the word homeowners which was meant to draw attention to the basic fact that they had done the process of buying in Uk and therefore one would hope that they would have sufficient savy to be knowledgeable enough to provide the same answer.As to talking complete bollocks which serves as personal amusement to myself,dont have to go to the pub to get that,its free with some of the posts on this website.

[Guess]

I reckon if you go into a pub in West london and ask 3 homeowners how much stamp duty they would pay on a house costing £250,001 you would get 3 different answers.

Maybe I have misunderstood slightly what you are asking but there have been so many tangental topics being chucked about. There is no point in comparing purchases in Portugal Spain and the UK with purchases here.

Stamp duty is something paid in the UK on the transfer of assets of high value. This could be property or stock. I understand recently the percentage in the UK has been scaled which would indicate your amount of 250,001 being written. I guess 250,000 is a threshold. The fact is that the answer is definitive not a matter of opinion or experience. If you get three diferent answers in a pub in Shepherd's Bush then at least two of them are complete bollocks. QED

As for capital growth on property owned in Thailand that is a completely different matter. Firstly I think it is unlikely that you will find many people who have had experience of making money in Thailand by purchasing land of property and reselling for profit and then moving the profit abroad.
If it is the case that you intend to do just that then all I am saying is get yourself a good financial advisor who has experience in this sort of dealing.

What had been said already about moving money is true. You can move out any money if you can prove it was brought in from abroad in the first place. I have a written statement from th Bank of Bangkok in London stating exactly that. Also small sums can be moved without any problems.

As for capital gains tax I know nothing but I am sure that there must be some mechanism in place if the property is a second home. In most countries capital gains tax only applies for the second and subsequent

You missed the point completely here,what I was trying to illustrate through the written word is that all answers to hypothetical questions refering to land and property purchases in Thailand are being answered by people who have gone down this road in thailand already and some of them are at odds with others in their answers.I stated the word homeowners which was meant to draw attention to the basic fact that they had done the process of buying in Uk and therefore one would hope that they would have sufficient savy to be knowledgeable enough to provide the same answer.As to talking complete bollocks which serves as personal amusement to myself,dont have to go to the pub to get that,its free with some of the posts on this website.

And I still have, and my guess is that many others have also. The topic subject is taking the profit and leaving and there have been a few sensible answers from people who write good sense.

To summarise, if you want to get money out and stay out there is a number of ways it can be done. If you want to stay, or return later then check out what Burger has written.

[Wanderlust]

The advice given by Guess (and others) has to be the way to go, however I am a little curious about something; when a sale is made between two parties does the land office, or whatever the relevant authority is, require some sort of evidence of the sum being paid? If so what is it that they require? I was just thinking that if it was two farangs (or even a farang selling and a Thai buying) could they not arrange for the funds to be exchanged from and to banks outside Thailand? As I said, just idle curiosity really, but it might be useful for others to know.

[Digger]

Wanderlust
Thanks for getting thread back on track as we are digressing away from it.I am interested to hear from anyone who bought a few years ago and did it through a company as explained through many posts and then decided to take his profit and sell and remove his money from the country.The reason I have raised this is everyone tends only to ask questions about buying without ever giving a thought to an exit stategy as any investment in a foreign country carries various degrees of risk and I would think that perhaps Thailand would be high as opposed to an EU country being low.
Hi Guess,yea your right it is a threshold at a quarter of a million it goes from 1% to 3% which is a hell of a difference but best I stay with Thailand now as you so rightly comment.Cheers Digger

[malcolminthemiddle]

There used to be a "Repatriation Tax", which may or may not still be valid?

[STEVE G]

In theory, if you repatriated profits from property brought as a company back to the UK, and you are still treated as a UK resident, you would have to pay income tax under ICTA 1988, sect.739-746. ( profit from assets transferred overseas )

[Burger]

In theory, if you repatriated profits from property brought as a company back to the UK, and you are still treated as a UK resident, you would have to pay income tax under ICTA 1988, sect.739-746. ( profit from assets transferred overseas )

Thailand and UK have a tax treaty, I thought that meant you only have to pay tax once in either of the countries ?

however I am a little curious about something; when a sale is made between two parties does the land office, or whatever the relevant authority is, require some sort of evidence of the sum being paid? If so what is it that they require? I was just thinking that if it was two farangs (or even a farang selling and a Thai buying) could they not arrange for the funds to be exchanged from and to banks outside Thailand?

The Land Office only requires a copy of the companies 'minutes of meeting' where it was agreed that the company would buy the property. No checks are carried out that the sum actually changed hands in this country. People do receive the funds 'back home' in some cases, how legit this is I do not know.

I am interested to hear from anyone who bought a few years ago and did it through a company as explained through many posts and then decided to take his profit and sell and remove his money from the country

I understand this is what the law says regarding 'Exchange Control', ..............
IV. FOREIGN INVESTMENTS
Foreign investments in Thailand, both direct and portfolio investments are freely permitted. Nonresidents may lend in foreign currency to residents without restriction. Both capital and loans can be freely transferred into the country and must be surrendered to an authorized bank or deposited in a foreign currency account with an authorized bank in Thailand within 7 days.
Repatriation of investment funds and repayment of overseas borrowing in foreign currency can be remitted freely after settlements of all applicable taxes.


Burger

[STEVE G]

Burger wrote;
Thailand and UK have a tax treaty, I thought that meant you only have to pay tax once in either of the countries ?

Hi Burger,
Sorry I didn’t make myself clear, the act I referred to was that which could be used if you brought back money without paying tax, it’s a tax evasion act.

[lomuamart]

So, what are the taxes?
I invest 5 million Baht in a house and sell later for 10 million.
If I want to take the money out of Thailand, are there any tax penalties?
The quote of being able to take the money out of the country after all applicable taxes have been paid is rather nebulous, to say the least.
What is the %age?
Simple question. Excuse me if I've missed the answer before.

[STEVE G]

If the house was owned by a thai company then surely you would have to pay corporate tax. For a foreign juristic person carrying on business in Thailand, the income tax imposed is 30% corporate income tax on net profits exceeding 3 million baht and 10% profit remittance tax on profits remitted abroad.