Income Tax On Condo Rental Income

[Lazy Sod]

Been trying to figure out the tax I'm liable to pay when renting out my condo. Please can someone with more experience than me clarify if my calcs below are correct? I'm a tax resident of Thailand if that makes a difference. Thank you.

Annual Rental Income = 1,000,000

30% Tax Deduction (Income from property on hire) = 300,000

Taxable Rental Income = 700,000

15% Tax (on the Taxable Rental Income) = 150,000

Net income after tax = 850,000

[rgs2001uk]

"Taxable Rental Income = 700,000

15% Tax (on the Taxable Rental Income) = 150,000"

Last time I was at school, 15% of 700,000 was 105,000.

[Lazy Sod]

Just checking!

Revised below. Is this version correct (I mean not only my maths but the overall interpretation of the rental tax liability). Thanks.

Annual Rental Income = 1,000,000

30% Tax Deduction (Income from property on hire) = 300,000

Taxable Rental Income = 700,000

15% Tax (on the Taxable Rental Income) = 105,000

Net income after tax = 895,000

[rgs2001uk]

Just checking!

Revised below. Is this version correct (I mean not only my maths but the overall interpretation of the rental tax liability). Thanks.

Annual Rental Income = 1,000,000

30% Tax Deduction (Income from property on hire) = 300,000

Taxable Rental Income = 700,000

15% Tax (on the Taxable Rental Income) = 105,000

Net income after tax = 895,000

If I was about to drop 20 million plus on a condo I would be triple checking.

Not unless its one of those mythical condos that returns 9, 10 or 12% like some would have us believe.

Best of luck in your venture.

[Lazy Sod]

Just checking!

Revised below. Is this version correct (I mean not only my maths but the overall interpretation of the rental tax liability). Thanks.

Annual Rental Income = 1,000,000

30% Tax Deduction (Income from property on hire) = 300,000

Taxable Rental Income = 700,000

15% Tax (on the Taxable Rental Income) = 105,000

Net income after tax = 895,000

If I was about to drop 20 million plus on a condo I would be triple checking.

Not unless its one of those mythical condos that returns 9, 10 or 12% like some would have us believe.

Best of luck in your venture.

Well, thanks for your help and advice. Much appreciated.

[Naam]

Just checking!

Revised below. Is this version correct (I mean not only my maths but the overall interpretation of the rental tax liability). Thanks.

Annual Rental Income = 1,000,000

30% Tax Deduction (Income from property on hire) = 300,000

Taxable Rental Income = 700,000

15% Tax (on the Taxable Rental Income) = 105,000

Net income after tax = 895,000

you overall interpretation lacks a major factor which could save you a bundle. is the condo furnished? if yes, a certain amount of rent can be deducted from the taxable amount for wear and tear of furniture and soft furnishing. i have been told that the Thai taxman accepts 30%.

[Lazy Sod]

Just checking!

Revised below. Is this version correct (I mean not only my maths but the overall interpretation of the rental tax liability). Thanks.

Annual Rental Income = 1,000,000

30% Tax Deduction (Income from property on hire) = 300,000

Taxable Rental Income = 700,000

15% Tax (on the Taxable Rental Income) = 105,000

Net income after tax = 895,000

you overall interpretation lacks a major factor which could save you a bundle. is the condo furnished? if yes, a certain amount of rent can be deducted from the taxable amount for wear and tear of furniture and soft furnishing. i have been told that the Thai taxman accepts 30%.

Thanks Naam. Yes it's furnished. If I understand correctly that will increase the tax deductable by a further 30%. Meaning I only get taxed on the remaining amount of 40% which is 400,000.

15% of 400,000 = 60,000 tax on rental income of 1,000,000. . down to 6% overall tax . . .not bad!

[mmail2you]

How does the tax department know if you have earned money off your condo or not ?

[cheeryble]

30% Tax Deduction (Income from property on hire) = 300,000

What does that mean?

[Lazy Sod]

It is the portion of the income which is excluded from tax liability. in other words, you don't get taxed on it.