Advise on declaring income tax on rental properties abroad?

[Fiskebolle]

Dear Fellow AN members,


I was wondering if anyone has experience or knowledge of expats declaring personal income tax here in Thailand (PND94 - midyear + PND90 year's end) on income derived from rental income from properties abroad?

Assuming you are tax-resident (by default of 180 + residing in Thailand) and have 'earned AND send this 'income' into Thailand), during the same tax year when being a  tax resident in the Kingdom of Thailand.

 

Seems there's no distinction made regardless of this is rental income derived form property within Thailand as opposed to property located abroad. 
Rental income under the revenue act 40(5) as defined rental income, requires as well additional filing of mid-year tax return (PND94) in addition to the standard (PND90/91).

Anyone's take on this is much appreciated.

 

Cheers,

 

FB

 

[motdaeng]

if you are a tax resident in thailand and bring taxable money into the country above the threshold, you have to pay taxes on it. the tax office doesn’t care how you earned the money abroad ... it is income money!

 

except in a few cases (proof required):

- it is savings from before 01.01.2024

- it is inherited money

- it is a gift

- you have already paid taxes on it in your home country

- it is exempt from taxes under a double tax agreement (DTA)

[Sheryl]

OP your understanding is correct. Makes no difference where the property is located, any income derived from the rental that is remitted into Thailand is assessable in Thailand (assuming you are resident here 180 days or more)

 

However if you also paid tax in it in another country you can claim a tax credit for that (or vice versa) assuming the country in question has a Dual Taxation Agreement with Thailand.

[quake]

1 hour ago, Sheryl said:

OP your understanding is correct. Makes no difference where the property is located, any income derived from the rental that is remitted into Thailand is assessable in Thailand (assuming you are resident here 180 days or more)

 

However if you also paid tax in it in another country you can claim a tax credit for that (or vice versa) assuming the country in question has a Dual Taxation Agreement with Thailand.

 

How do you clam a tax credit on tax payed in a foreign country.

Is there a box to enter this amount in on any of the Thai tax forms ?

I can't find one, maybe I missed it .

 

[Sheryl]

1 hour ago, quake said:

 

How do you clam a tax credit on tax payed in a foreign country.

Is there a box to enter this amount in on any of the Thai tax forms ?

I can't find one, maybe I missed it .

 

Yes this is a problem. There is no place for it on the forms. I don't know where/how you should show it. Maybe someone else can advice. Otherwise, need to ask an accountant or Revenue Office.

[quake]

27 minutes ago, Sheryl said:

Yes this is a problem. There is no place for it on the forms. I don't know where/how you should show it. Maybe someone else can advice. Otherwise, need to ask an accountant or Revenue Office.

 

Thank you for your reply. 

Yes it's a huge issue.

Also at what rate, rental income is taxed at. I'm still unsure about that.

anyone ?

 

 

[Rick45]

You've gotten a lot of really bad advice here.  You will need to review your country's tax treaty with Thailand to determine if that rental income is taxable in Thailand, your home country, or both.  

 

The tax treaty likely specifically addresses income from rental property in your home country, and will state which country can tax it.  It's possible that the income is not taxable in Thailand.  There is no way to know without reading the tax treaty.

 

In my case, I have a business in my home country, and my country's tax treaty states that business income is only taxable in my home country even though I live in Thailand.  I remember reading about income from rental property in the tax treaty, but can't remember how it was treated.

 

 

[bamnutsak]

12 hours ago, quake said:

Also at what rate, rental income is taxed at. I'm still unsure about that.

anyone ?

 

Here in Thailand?

 

I think it gets lumped into the pool of accessible income, which after deductions/exemptions, gets taxed on a graduated scale.

 

0 – 150,000 Exempt 
150,000 – 300,000 5% 
300,000 – 500,000 10% 
500,000 – 750,000 15% 
750,000 – 1,000,000 20% 
 1,000,000 – 2,000,000 25% 
 2,000,000 – 4,000,000  30% 
Over 4,000,000 (see note 1) 35% 
 

 

 

[quake]

7 minutes ago, bamnutsak said:

 

Here in Thailand?

 

I think it gets lumped into the pool of accessible income, which after deductions/exemptions, gets taxed on a graduated scale.

 

0 – 150,000 Exempt 
150,000 – 300,000 5% 
300,000 – 500,000 10% 
500,000 – 750,000 15% 
750,000 – 1,000,000 20% 
 1,000,000 – 2,000,000 25% 
 2,000,000 – 4,000,000  30% 
Over 4,000,000 (see note 1) 35% 
 

 

 

 

Thanks for your reply. 

So I should be able to deduct 30% ( rental income expenses  allowance )

Then get into the graduated scale.

 

0 – 150,000 Exempt 
150,000 – 300,000 5% 
300,000 – 500,000 10% 
500,000 – 750,000 15% 
750,000 – 1,000,000 20% 
 1,000,000 – 2,000,000 25% 
 2,000,000 – 4,000,000  30% 
Over 4,000,000 (see note 1) 35%

 

All assuming,  I can't just forget it all because of the dual tax agreement between Thailand and uk.

That's all a bit of a gray area to me at present.

 

 

 

 

[bamnutsak]

17 minutes ago, quake said:

So I should be able to deduct 30% ( rental income expenses  allowance )

 

I don't know how if foreign-derived rental income, assuming it is remitted to Thailand, is treated the same days as rental income generated here in Thailand.

[quake]

44 minutes ago, bamnutsak said:

 

I don't know how if foreign-derived rental income, assuming it is remitted to Thailand, is treated the same days as rental income generated here in Thailand.

 

Yes good question.

I just made that assumption. 

And you know what they say about assumptions. 

 

But saying that,  I think I have read it here on one of the tax threads.

30% deductible expenses from gross foreign or Thai rental income.

 

[Fiskebolle]

19 hours ago, Sheryl said:

OP your understanding is correct. Makes no difference where the property is located, any income derived from the rental that is remitted into Thailand is assessable in Thailand (assuming you are resident here 180 days or more)

 

However if you also paid tax in it in another country you can claim a tax credit for that (or vice versa) assuming the country in question has a Dual Taxation Agreement with Thailand.

Thanks Sheryl

[Fiskebolle]

18 hours ago, quake said:

 

How do you clam a tax credit on tax payed in a foreign country.

Is there a box to enter this amount in on any of the Thai tax forms ?

I can't find one, maybe I missed it .

 

This I believe depends on the DTA with the country where such property is located in (income source country). in the DTA should be a clear distinction between exempt vs. tax input credit.  If the DTA prescribes that it can be used as a tax input credit, towards tax in the other jurisdiction (Thailand it is). Thailand will most likely double tax it regardless anyway and then it's UP TO YOU to proof with DTA and other prevailing docs with the Revenue department that the tax which is due needs to be off-set with any tax input credit. Basically, long story short... better not to go down that route ...yet. As it certainly requires additional docs, translations etc and believing that the current tax law is relatively new and the very limited knowledge of DTA's, i believe it will go nowhere, until there's more clarify on the matter. As we go forward would be interested to see/learn from other people's experiences, claiming tax input credit on foreign sourced income... Trying to think a bit pragmatic here and along the lines given the context and situation we are in here dealing with bureaucracy in Thailand...

[quake]

22 minutes ago, Fiskebolle said:

This I believe depends on the DTA with the country where such property is located in (income source country). in the DTA should be a clear distinction between exempt vs. tax input credit.  If the DTA prescribes that it can be used as a tax input credit, towards tax in the other jurisdiction (Thailand it is). Thailand will most likely double tax it regardless anyway and then it's UP TO YOU to proof with DTA and other prevailing docs with the Revenue department that the tax which is due needs to be off-set with any tax input credit. Basically, long story short... better not to go down that route ...yet. As it certainly requires additional docs, translations etc and believing that the current tax law is relatively new and the very limited knowledge of DTA's, i believe it will go nowhere, until there's more clarify on the matter. As we go forward would be interested to see/learn from other people's experiences, claiming tax input credit on foreign sourced income... Trying to think a bit pragmatic here and along the lines given the context and situation we are in here dealing with bureaucracy in Thailand...

 

Thanks for your reply