Renting condo in pattaya to others and tax

[parafareno]

If you own and condo and get a tenant for lets say 1 year and you earn 120000 per year. Do you have to pay any tax?

Or not necessary? The real estate agent told me no tax is needed to pay. 

I was thinking like 20 % of the profit or something....

Edited October 17, 2022 by parafareno

[mjakob007]

Threshold for income tax is 150,000thb per annum for FY 2022

[PPGuy]

2 hours ago, mjakob007 said:

Threshold for income tax is 150,000thb per annum for FY 2022

Does that also apply to rental income? 

[mjakob007]

yes, per my understanding.

 

rental income also qualifies for 'standard deduction or allowance' not exceeding 30% of such income.

[scubascuba3]

1 minute ago, mjakob007 said:

yes, per my understanding.

 

rental income also qualifies for 'standard deduction or allowance' not exceeding 30% of such income.

If renting, don't need a work permit?

[mjakob007]

 

No, as long as one can establish not to be soliciting tenancy.

 

in other words, if there is an agent who brings a tenant the landlord can establish RE commission has been paid, its a pass.

[PPGuy]

1 hour ago, mjakob007 said:

yes, per my understanding.

 

rental income also qualifies for 'standard deduction or allowance' not exceeding 30% of such income.

This article gives some more detail on the tax impact on rental income but the basics match with your comment.

https://www.hlbthai.com/thai-rental-properties-and-personal-income-tax/

But, as with all things Thai, caveat emptor.

[parafareno]

so in simple term, if you are away in europe and you rent your property through agent you do not have to pay any tax...you can pocket the money 100 %...

it is just simple yes or no....

[parafareno]

2 hours ago, PPGuy said:

This article gives some more detail on the tax impact on rental income but the basics match with your comment.

https://www.hlbthai.com/thai-rental-properties-and-personal-income-tax/

But, as with all things Thai, caveat emptor.

so this article says

Taxes on rental income

Foreign individuals are subject to Thai personal income tax on rental income generated from real estate situated in Thailand.

In most cases, 15% withholding tax applies to rental income paid to foreign individuals that are not tax residents of Thailand.

How to pay less than 15% tax

 

it means I have to pay the government 15 %??

[mjakob007]

WHT has to be deducted and paid to govt by the lessee. 

 

When you file personal tax return in Thailand, the WHT will be refunded to you, if your income does not attract tax for the FY. if your only income for the year in Thailand is less than 150,000, you will receive a full refund.

 

I once had a tenant who worked for an international airline co, and rent was paid by the airline. they would deduct WHT and i had to claim it at the end of year while filing tax returns.

 

In your case, if your tenant is not a corporate entity, they would not deduct WHT.

 

if your only income in Thailand is limited to 120,000baht, you don't have any tax exposure. just validate with a 'tax practitioner', if you are liable to file tax returns at the end of the year or otherwise.

Edited October 18, 2022 by mjakob007
missed a word out

[parafareno]

so below 150000 per year is no tax..above 150000 is 5 % and then step up gradually?