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Withholding tax on property sale in Thailand — how the Land Office calculates it

How Thailand's withholding tax on property sales works for individuals vs companies, the cost-deduction table, and why it acts as de facto CGT.

8 min read

Point-of-sale terminal printing a thermal paper receipt
Photo: Towfiqu barbhuiya / Pexels

The withholding tax (WHT) on Thai property sales is the largest tax most sellers pay on transfer day, and the most opaque. The calculation method differs between individual and company sellers, runs through statutory tables, and produces results that are not intuitive without working through the math. For buyers, the WHT is rarely your direct concern — it’s the seller’s tax — but understanding it matters for negotiation and for your own future sale.

This article covers the calculation methodology for both individual and company sellers, the practical effect, and what foreign buyers should understand about WHT.

What is withholding tax on a Thai property sale?

Withholding tax is a prepaid income tax that the Land Office collects from the seller before a Thai property transfer is completed. The Department of Lands collects the WHT and remits it to the Revenue Department (the Thai tax authority). The seller’s underlying income tax obligation is satisfied (in most cases) by the WHT collected at the Land Office.

The mechanism is administrative: rather than tracking property gains across the seller’s lifetime tax records, Thailand collects the tax at the moment of transaction, in cash, before ownership changes hands.

How does the Land Office calculate WHT for an individual seller?

For an individual seller, the Land Office starts with the appraised value, applies the statutory deduction table, and then applies progressive personal income tax to the deemed annual income. The calculation has five steps:

Step 1 — Take the appraised value. Not the sale price. The Treasury Department’s appraised value is the base, regardless of what the parties agreed to.

Step 2 — Apply the cost-deduction percentage based on years owned. The statutory table:

Years of ownership Cost deduction
1 year 92%
2 years 84%
3 years 77%
4 years 71%
5 years 65%
6 years 60%
7 years 55%
8+ years 50%

The cost deduction is treated as the seller’s basis. The remainder (after deduction) is the deemed taxable gain.

Step 3 — Divide the gain by years of ownership. This produces a deemed annual income figure.

Step 4 — Run the deemed annual income through the personal income tax brackets. Thailand’s progressive PIT:

  • 0–150,000 THB: 0%
  • 150,001–300,000 THB: 5%
  • 300,001–500,000 THB: 10%
  • 500,001–750,000 THB: 15%
  • 750,001–1,000,000 THB: 20%
  • 1,000,001–2,000,000 THB: 25%
  • 2,000,001–5,000,000 THB: 30%
  • 5,000,001+ THB: 35%

Step 5 — Multiply the resulting per-year tax by years of ownership. This gives the total WHT owed at the Land Office.

What is the WHT on a 10M THB appraised property held for 7 years?

  1. Appraised value: 10,000,000
  2. Cost deduction at year 7: 55%, so deduction = 5,500,000
  3. Remainder (deemed gain): 4,500,000
  4. Annual income: 4,500,000 / 7 = 642,857
  5. PIT on 642,857:
    • 0–150,000 at 0% = 0
    • 150,001–300,000 at 5% = 7,500
    • 300,001–500,000 at 10% = 20,000
    • 500,001–642,857 at 15% = 21,429
    • Total: ~48,929
  6. WHT total: 48,929 × 7 = ~342,500

WHT in this example: ~3.4% of appraised value.

What is the WHT on an 8M THB appraised property held for 2 years?

  1. Appraised value: 8,000,000
  2. Cost deduction at year 2: 84%, so deduction = 6,720,000
  3. Remainder: 1,280,000
  4. Annual income: 1,280,000 / 2 = 640,000
  5. PIT on 640,000:
    • 0–150,000 at 0% = 0
    • 150,001–300,000 at 5% = 7,500
    • 300,001–500,000 at 10% = 20,000
    • 500,001–640,000 at 15% = 21,000
    • Total: ~48,500
  6. WHT total: 48,500 × 2 = ~97,000

WHT in this example: ~1.2% of appraised value.

What WHT range is typical for an individual resale?

For most resale transactions, WHT lands in the 1–4% range of appraised value. Higher when:

  • Long ownership period (8+ years) — full cost-deduction floor at 50%
  • High appraised value — pushes deemed annual income into higher brackets

Lower when:

  • Short ownership period — most of the value is deducted as cost
  • Low appraised value — stays in lower brackets

The unintuitive bit: longer ownership doesn’t always mean lower WHT, because the cost-deduction percentage stops decreasing at year 8 and the gain is amortized over more years. The WHT calculator at most Thai law firms will produce the exact number for any specific case.

How is WHT calculated when a company sells Thai property?

For a company seller (a Thai juristic person selling property), WHT is 1% of the higher of the appraised or sale price.

For a Thai-majority company selling a 25M villa with appraised value of 18M:

  • Higher of appraised vs sale: 25M
  • WHT: 1% × 25M = 250,000

The 1% WHT is then creditable against the company’s final corporate income tax (20% CIT on the actual gain) when the company files its annual tax return. So the 1% is a prepayment, not a final tax. The company’s accountant reconciles at year-end.

For property held in a Thai-majority company structure (legal but high-risk in 2026 — see Thai company structures for property ownership under the 2026 enforcement regime), the WHT mechanics are different from individual ownership and the long-term tax bill is higher (20% CIT on gain vs WHT-as-final for individuals).

Does the buyer pay withholding tax on a Thai property sale?

Usually, no: by customary practice, WHT is the seller’s tax. It is rarely shifted to the buyer, regardless of negotiation dynamics. The seller pays WHT via cashier’s cheque to the Land Office on transfer day.

The few situations where allocation might shift:

  • Distress sales where the seller is unable to pay — the buyer may agree to pay WHT in exchange for a price reduction equal to or greater than the WHT amount
  • Off-plan developer sales where the developer absorbs all transaction costs as part of the marketing package
  • Family transfers where the parties have other reasons for non-standard splits

For standard resale transactions, expect WHT to be the seller’s tax. If a buyer is asked to pay it, recalculate the offer.

Why should a buyer understand WHT before buying Thai property?

Buyers should understand WHT because it affects a seller’s price floor and the tax they will face on a future sale. Three reasons foreign buyers should understand WHT:

1. Future sale tax planning. When you eventually sell your Thai property, you’ll pay the WHT calculated this way. The longer you hold, the higher the cost deduction floor effect (50% from year 8 onward) — but also more gain to amortize. Plan exit timing with the math in mind.

2. Negotiation transparency. Sellers who are reluctant to negotiate price often have a specific WHT calculation in mind. Understanding their math helps you understand their floor.

3. Distress-sale opportunity. When a distressed seller can’t cover their WHT and your willingness to pay it (in exchange for price reduction) is the difference between a deal and no deal, the WHT mechanics matter for your offer structuring.

Can an individual seller aggregate property-sale WHT in an annual tax return?

Yes. An individual seller may elect to aggregate the sale into their annual personal income tax return (PND.90), treating the WHT as a creditable prepayment rather than a final tax. In theory, if the seller has other tax-deductible losses or low overall income, aggregation could reduce the total tax.

In practice, aggregation rarely benefits Thai property sellers because the WHT calculation already provides generous cost deductions. Most sellers treat the Land Office WHT as the final tax and don’t aggregate.

For company sellers, the WHT is always credited against final CIT — the “election” doesn’t apply.

What should buyers check about WHT before agreeing a Thai property purchase?

Buyers should treat WHT as the seller’s cost, price it into any exception, and plan for their own future sale. Three rules:

  1. Don’t accept being asked to pay WHT. It’s the seller’s tax. If asked, recalculate the offer.

  2. Plan your future-sale WHT into hold-period decisions. Years 1–4 produce the lowest WHT (high cost deductions); years 8+ produce the lowest WHT-per-year-of-gain. Years 5–7 are the awkward middle.

  3. For Thai-company-held property, expect higher long-term tax. 20% CIT on company gains exceeds WHT-as-final for individuals. This is one more reason against the company structure for personal residences — see Thai company structures for property ownership under the 2026 enforcement regime.

For broader tax context: Taxes and fees when buying property in Thailand — full 2026 breakdown. For capital gains specifically: Capital gains on property sale in Thailand — what foreigners actually pay. For the Land Office process: Thailand Land Office transfer day — 2026 fees guide. For transfer fees: Property transfer fees in Thailand — the 2% rule and the Thai-only stimulus.

Frequently asked questions

What is withholding tax on property sale in Thailand?

It is a prepaid income tax that the Land Office collects from the seller on transfer day. For individual sellers, it uses a statutory deduction table and progressive personal income tax brackets; for company sellers, it is 1% of the higher of the appraised or sale price.

How is WHT calculated for an individual seller?

The Land Office applies the appraised value, deducts 92% in year 1 down to 50% from year 8, divides the remainder by the years held, applies personal income tax brackets of 5%–35%, then multiplies by the years held. For most resales, the result is 1–4% of the appraised value.

How is WHT calculated when a company sells Thai property?

A company pays 1% of the higher of the appraised or sale price at transfer. That payment is creditable against the company's final 20% corporate income tax on the actual gain.

Does the buyer usually pay withholding tax on a Thai property sale?

Usually not: withholding tax is customarily the seller's payment to the Land Office. A buyer may agree to cover it in a distressed sale or another negotiated arrangement, so it should be reflected in the purchase price.

Is the withholding tax the final tax on the sale?

For individual sellers, it is effectively the final tax because Thailand has no separate capital gains tax on immovable-property sales. An individual can elect to aggregate the sale in an annual PND.90 return, while a company always credits its 1% WHT against final corporate income tax.

Can an individual seller aggregate property-sale WHT in an annual tax return?

Yes. An individual can include the sale in an annual PND.90 return and use the Land Office payment as a credit, although the statutory cost deductions mean this is rarely advantageous.