Rental Income Tax

[appleman_thai]

I have recently just left Thailand and have started to rent out my condo in Cha-am through an agent.

I am wondering what tax I am liable for the rental income that I earn.

Anyone any ideas as to the rates that apply?

Thanks

[SamSipEt]

Your agent should be able to advise you but your question raised a thought – if you earning money in Thailand does this mean that you need a work permit?

[mangkorn]

I have recently just left Thailand and have started to rent out my condo in Cha-am through an agent.

I am wondering what tax I am liable for the rental income that I earn.

Anyone any ideas as to the rates that apply?

Thanks

I'm pretty sure there must be rental-income taxes, because I once received a letter from the tax authorities in my mailbox, addressed to the landlady. So I called her up and told her about it, and she and her husband rushed all the way across town on a Saturday night to see what it was. Then, they instructed me to never tell anybody that I was renting their apartment - which was very odd, since it is obvious to everyone in the building that I am indeed renting it. But something sure set her off, and I have no doubt that she is evading some tax.

[briley]

I was un-reliably informed that owning over 5 condo's and you are assumed to be running a business and need a work permit.

Anyone met that stipulation?

[Oleg_Rus]

I'm pretty sure there must be rental-income taxes, because I once received a letter from the tax authorities in my mailbox, addressed to the landlady. So I called her up and told her about it, and she and her husband rushed all the way across town on a Saturday night to see what it was. Then, they instructed me to never tell anybody that I was renting their apartment - which was very odd, since it is obvious to everyone in the building that I am indeed renting it. But something sure set her off, and I have no doubt that she is evading some tax.

Very good point.

I think 30% as income + 7% had to be paid to revenue dept. If they cannot prove expences, from which can deduct some it should be exactly 30%+7% ...

Very handy, when You have an argument with landlord - just promise her/hem/it - to submit all receipt to nearest Tax Dept and that would be just fine. 12months * 8000 = 96,000 right ? and 30.816 has to go ?

[quiksilva]

Personal tax rates I think are still as follows:

Net Annual Income (Baht) Tax Rate

0 - 100,000 5%

100,001 - 500,000 10%

500,001 - 1,000,000 20%

1,000,001 - 4,000,000 30%

> 4,000,001 37%

If you are liable to corporate income tax then its 30%, but as of 2002 firms with a paid up capital < 5 million baht (SMEs) pay less than that

• Net profits not more than 1 million baht: 20%.

• Net profits 1 million baht to 3 million baht:25%.

• Net profits 3,000,001 baht or more: 30%

At least that used to be the case, I don't have the latest information.

There is also Household & Land Tax (aka Property Tax) which is payable on annual rental income at 12.5%.

This is one of the reasons why so many leases here are split over 2-3 agreements eg Rental, Service, and Furniture/Equipment Hire etc.

Landlord's who take this approach to minimise exposure to tax must prove that they do actually provide services, or hiring actual furniture /equipment.

[Gary A]

I think the figure you are looking for is 12.5 percent on the actual rent. That tax applies to leased property and rentals.I don't know of anyone other than leases recorded at the land office that actually pay it.

[cosmont]

As owner, I rent my condo to my company, I only pay 5% Witholding Tax (I don't have work permit)...

[cosmont]

As owner, I rent my condo to my company, I only pay 5% Witholding Tax (I don't have work permit)...

It is 3% not 5%, sorry for the mistake