How Official Value of the land plot is determined
The Valuation Committee shall have powers and duties as follows.Landowners and potential buyers can use the official value of land as a guide when negotiating the sale or purchase of land, although the actual sale price may differ from the official value depending on the specific circumstances.(1) To determine the rules and procedures for valuating and pricing the immovable properties for purpose of levy of fee for registering the right and juristic act under this Code.
(2) To approve the capital valuation and pricing proposed by the Provincial Sub-Committee to be used in levying the fee for registering the rights and juristic acts related to the immovable properties situated within the territories of such province.
(3) To consider any problematic matter in connection with the levy of fee of registration of rights and juristic acts as requested by the Department of Lands.
(4) To appoint a Sub-Committee to consider matters or perform tasks assigned by the Valuation Committee and report thereto.
(5) To perform other activities as prescribed in this Code or other laws. Appraisal price of the capital as approved by the Valuation Committee under (2) shall be made known to the public and put up at the Provincial Land Office, the Branch Land Office, and the District Office or Amphoe Office or King-Amphoe Office.
How is Official Value is used when you buy a land plot
- Transfer fee
- Income tax (payable as withholding tax)
- Stamp duty or specific business tax/local development tax.
The transfer fee and (individual) seller’s income withholding tax which are required to be deducted and paid to the authorities upon transfer are calculated based on the Land Office’s Official Value of the property.
The stamp duty or specific business tax/local development tax which is also required to be deducted and paid to the authorities upon transfer and both are calculated based on the Official Value of the property or the actual transaction value of the property, whichever is higher. Thus, because the Land Office’s appraised value of the property is one of the key elements used for the calculation of the fee and taxes applicable to and payable upon the registration of ownership of immovable property, you might wish to know more about this Official Value.
