We are currently negotiating a lease contract for a small business. The owner wants us to pay the property tax. How much is that if the proposed rent is 35000 a month

 

Thanks

 

 

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Unless corrected the rate is 12.5%. I strongly suggest you Google "property tax thailand rental" and start reading. If all else fails talk with property lawyer.

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The rate is currently 12.5% of rent. Typically for this reason landlords and tenants choose to sign two agreements, one lease and one service agreement. The ratio is typically 50:50 of 60:40. The property tax is payable on the rental portion of the agreement, not the service agreement (which attracts other lesser taxes). Unlike overseas the service agreement is purely for tax mitigation purposes and you would not receive budgets, expenditure accounts justifying the service charge.  If you split your rental at a ratio of 50:50 your income tax liability would approximately be 26,250 THB per annum.

 

For industrial premises or commercial premises outside of major cities, it is sometimes possible to negotiate the tax rate, but in general terms the first paragraph is currently correct, subject to new tax laws implementation if they can ever agree them. Technically property tax is a landlord tax, but authorities do not care who pays it as long as they receive it.