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Selling Thai Property from One Company to Another

Transcript of the above video:

As the title of this video suggests, we are discussing selling Thai property between companies.

We don't see this overly often and as I have discussed in other videos on this channel, incorporation for the sole purpose of owning Thai property in the form of real estate, that is land, to the benefit of a foreigner, that is tricky stuff and that is not necessarily what we are talking about here. It is not uncommon though to see condominiums that are in the control of a Company and somebody may not necessarily want to divest themselves of that Company. We see this a lot, especially with SMEs here in Thailand, and we did videos called "The Whole Package" where we talk about setting up your life here in Thailand to be cost-effective, efficient, streamlined and one thing is having your corporation possibly own your residence can have a lot of benefits. Most notably, it can reduce certain expenses; it can have tax benefits within the Company by doing it that way. Again, you need to deal with this on a case by case basis and this video should not be viewed as the end all be all with respect to advice for specific cases but there are ways in which owning one's home for example through a Company can be very beneficial. 

The problem is what if you sell the home but you don't want to sell the Company? In certain cases, you may just sell the Company and it all goes as a package deal but we do see certain situations where that is not the case. In those circumstances, we have seen situations where for example a condo gets transferred from one Company to another Company. There are a lot of ramifications to that, a lot of tax ramifications to that; a lot of corporate accounting compliance ramifications associated with that; there is imputed income to one entity and an imputed cost to another entity. All that has to be maintained. It has to be properly documented and then on top of that you have got to deal with the conveyancing at the Land Office. There is a lot of complexity here. For this reason, it is probably a good idea to contact a legal professional that has accounting services that can assist in both the conveyancing as well as the knock-on ramifications from a corporate accounting perspective from the sale of property out of one entity or into one entity or between two entities as doing this correctly will save you a lot of problems especially in terms of a possible audit or issues associated with tax liability here in Thailand.