income tax on rental income

[beaufoy]

ten years ago we purchased a 12 room very basic apt block . Each room was rented out at 800 bht pcm and we had about an average of 10 rooms occupied. There was no allowances for expenses or basic tax credit allowance, and we had no other forms of income. I believe my wife paid about 10% ie about 10,000bht per year in tax. Now I have been reading a thai tax advice web site, and said site suggests if we owned the apt block now we would not pay one baht in tax until our income surpassed 150,000 baht and when it surpasses 150,000 the income in excess of 150,000 would only be taxed at 5%  until our income went over 250000.....either tax allowances/rates have shot up over the past 10 years, or mistakes have been made....please advise me

[SiamRead]

Go seek advise from a Professional Accountant. I don't think this forum can help you.

[Delight]

 Found this on the net

 

The 1st 150,000 Baht is tax free.

Also only 70% of your total income is taxed. The 30% covers your  expenses .

I attached  chart

[KamnanT]

Basic allowances and the tax-free band have risen significantly over the last decade.  Follow SiamRead's advice: many expenses can be offset against your rental income, including depreciation on the building and furnishings.  Your tax return will not be as straightforward as a salary earner with tax withheld at source.

[Orinoco]

Maybe op needs to look a bit closer to home, for answers.

 

 

Edited April 12, 2021 by Orinoco

[LivinLOS]

Always wondered if I was going to build some rental units.. 

Cant I 'lend' the build money to my wife, at a punitive interest rate (no one else is lending it to her at any rate), build with that money.. Then always be paying off the mortgage / development loan. I have an offshore company which could be the source of funds and legally owe the debt to. 

If the rental yields are as low as they are, a 10% per annum development loan would remain underwater.. 

 

 

[natway09]

You must have "costs" on this asset.

Claim all those expenses (deduction) ensure have full receipts before summitting.

I presume in your wife:s name as an individual ?

[khunPer]

On 4/3/2021 at 4:17 PM, beaufoy said:

Now I have been reading a thai tax advice web site, and said site suggests if we owned the apt block now we would not pay one baht in tax until our income surpassed 150,000 baht and when it surpasses 150,000 the income in excess of 150,000 would only be taxed at 5%  until our income went over 250000.....either tax allowances/rates have shot up over the past 10 years, or mistakes have been made....please advise me

What you have been reading is correct, and the tax rules for long time, nothing have changes.

 

You can find an income tax calculator HERE.

[beaufoy]

On 4/12/2021 at 6:37 AM, natway09 said:

You must have "costs" on this asset.

Claim all those expenses (deduction) ensure have full receipts before summitting.

I presume in your wife:s name as an individual ?

Well it is debatable if a car can be claimed for..the profit when the condos are sold will go under CGT. Of course there is furniture depreciation but if we buy fully furnished and sell fully furnished then again it becomes CGT , so that is left is advert costs phone bills and repairs 

It will be wife's name as individual 

Thanks for you answer natway09 whilst we are on subject do you have any idea what one of the other answers means ie orinoco wrote

Maybe op needs to look a bit closer to home, for answers.

[beaufoy]

On 4/12/2021 at 6:37 AM, natway09 said:

You must have "costs" on this asset.

Claim all those expenses (deduction) ensure have full receipts before summitting.

I presume in your wife:s name as an individual ?

As a side question what are advantages/disadvantages to buying condos off plan...I assume there could be problems if the developer stops trading and leaves the condo half built. I assume Nordic still have unfinished buildings will the people who put a deposit down in one of nordics unfinished buildings lose their deposit