I own a condo in Patong and have just started renting it out.

I live here permanently and pay Thai Tax and Social Security dues every month in the correct amount.

I am aware therefore of the situation reagrding Witholding tax but I am confused re House and Land tax which is payable annually (in February I believe) in the sum of 12.5% of the appraised value of the condo and is payable to the local authority.

Have I got this wrong? and does Patong actively collect this income?

Thanks in advance

T

Yes, there is an annual property tax of 12.5% on rental property based on actual rental income, and not of any property valuation. This tax is payed to the local tesibaan, in your case the Patong Tesibaan (just past the fire station). Should be paid by the end of February each year (for the previous year).

You can break your rental income down into property and furnishings, tax is only paid on the property component. If the property is not being rented in any given month then you must notify the tesibaan each month it is vacant. If you don't notify then they just assume it is rented and tax accordingly.

The Patong tesibaan is quite vigilant (aggressive) in searching out rental properties and applying the property tax.

You should seek professional advice as the above is only my understanding of how this tax is applied.

There are apartment/condo owners with fly in fly out workers as tenants who have

have the rent paid into overseas bank accounts

Thats tax evasion where i come from, the tax rules in thailand could be different