Land Transfer Fee: What is it and What Should You Do? The process of buying or selling land involves complex procedures, and costs incurred in this process can be confusing. Land transfer fees are a significant part of the expenses that should be calculated in advance and prepared for when you intend to buy or sell land. This article aims to help you understand land transfer fees and how to calculate them.
Land Transfer Fee: What is it and What Should You Do?
How and What to Pay for Land Transfer Fees
1.What are Land Transfer Fees? Land transfer fees refer to the money paid to the government or relevant authorities when you transfer the land rights from the seller to the buyer. This fee is often called "land transfer tax" and is calculated using a percentage of the agreed-upon land sale price set by the government or the relevant organization.
2.Calculating Land Transfer Fees Land transfer fees are typically calculated using the following formula: LandTransferFees=LandSalePrice×TransferTaxRate
2.1 Land Sale Price: The land sale price is the agreed-upon amount that you and the land seller decide upon in that specific transaction. This price is usually agreed upon and specified in the land purchase and sale agreement.
2.2 Transfer Tax Rate: The transfer tax rate is the percentage of the land sale price that needs to be paid to the government or relevant authority. This rate may vary depending on the laws and regulations of each location. The transfer tax rate can be a fixed amount or a percentage of the land sale price.
3.Example of Land Transfer Fee Calculation Let's look at an example of calculating land transfer fees:
Suppose you are purchasing land for 1,000,000 Baht, and the transfer tax rate in your area is 2%. The land transfer fees would be:
Land Transfer Fee = 1,000,000 Baht x 0.02 = 20,000 Baht
In this case, you would need to pay 20,000 Baht as land transfer fees when you buy this piece of land.
4.Paying Land Transfer Fees Land transfer fees are paid directly to the government or relevant authority, either through direct payment or via a legal representative or the landowner. It is advisable to contact the relevant authority for more information about land transfer fees and the procedures to be followed.
5.Summary Land transfer fees are expenses incurred when transferring land rights. Understanding how to calculate land transfer fees is crucial when engaging in real estate transactions. You may seek additional information from relevant authorities or legal advisors when calculating land transfer fees for specific cases. Knowing how to calculate and handle land transfer fees efficiently can help minimize confusion and streamline the land buying and selling process.
Information from primo.co.th
