Rental Account & tax question

[Dan SG]

Hi everyone

Grateful if you guys can provide some advice. I live overseas and recently purchased a condo in BKK. I set up a non-resident bank account with standard chart to transfer funds for the transaction. Because its a non-resident account, Stan Chart are telling me that any payments into my account need to be made over the counter at the main branch in Chong Nong Sri. They won't convert it to a full account with internet access and ability to receive electronic payments etc, unless i have a non-immigrant visa for more than 3 months. The unit is now about to be rented out and I urgently need an account into which the tenants can pay rent. What are my options. Are there any other Banks that will set up a more flexible account for non-residents if i can show i am a condo owner here and have tenant? Which Banks are my best bet? Also will they have internet account so i can check the rent's gone in each month?

Secondly, what are the tax implications if I remit the rent i receive. Do I need to withhold tax or can it just be paid on my annual tax return I assume I will need to submit.

Thanks in advance guys. Appreciate the guidance. Have already gleaned so much from reading this sub-forum over the past few months.

[KittenKong]

Just open another resident (ie "normal") savings account for receiving your rental payments, using another bank if necessary. This will have all the normal functions (internet banking, ATM card, transfers in/out via Thai interbank transfers). I know which banks and branches are the most helpful for this in Pattaya, which doesnt help you, but perhaps some Bangkok residents will have local knowledge about branches there.

I'm not sure if it was your question, but yes you should declare your rental income here.

Edited January 11, 2015 by KittenKong

[Dan SG]

Thanks. I was asking more whether, each time I remit the rental income, i need to withhold tax (e.g. thru withholding tax) or is it ok to just account for the tax on annual return.

I don't think I can open a resident account since I am not actually resident? The account I have with stan chart is a non resident account and they won't convert it unless i get a min 3 month non immigrant visa which I know is very hard at the moment (i'm under 50 and live outside Thailand).

Edited January 11, 2015 by Dan SG

[KittenKong]

Thanks. I was asking more whether, each time I remit the rental income, i need to withhold tax (e.g. thru withholding tax) or is it ok to just account for the tax on annual return.

Remit it where? Which country's tax return are you talking about?

I don't think I can open a resident account since I am not actually resident?

You certainly can. Standard Chartered (I suppose that is who you mean) are not exactly the easiest bank to work with, especially since they got hauled over the coals for facilitating money laundering etc.

Just go and see a normal Thai bank.

[pkrv]

_{Go to the Opening a New Bank in Thailand pinned thread on the finance forum}

_{http://www.thaivisa.com/forum/topic/260738-opening-a-new-bank-account-in-thailand/}

_{Your Visa status is critical here and your presense in Thailand would also be necessary}

_{You can open a passbook savings account at Bangkok Bank head office on a visa on arrival / tourist visa providing you can show a need to do so. Your condominium is a good reason - go well armed with the Chanotte-ti-din (title deed) blue book etc.}

_{You may or may not be able to immediately get ibanking (internet banking) at the same time}

_{You will need Thai Tax Id(s) - we used Sigma Accounting to do this for us to declare your rental income.}

_{The only other option is to open a Premier Account with HSBC but you need large funds or a large income to do this. After that HSBC anywhere in the world wil just sort you out with their 1 (one) branch in Thailand.}

Edited January 13, 2015 by pkrv

[KittenKong]

You will need Thai Tax Id(s) - we used Sigma Accounting to do this for us to declare your rental income.

The only other option is to open a Premier Account with HSBC but you need large funds or a large income to do this. After that HSBC anywhere in the world wil just sort you out with their 1 (one) branch in Thailand.

It's very easy to get a Tax ID yourself. It takes just a few minutes.

I thought that HSBC here no longer does personal banking?

[Dan SG]

Thanks. From the research looks like Bangkok Bang and K Bank may be my best bet.

Re tax ID, once I have this can I remit the rent without withholding tax?

[pkrv]

Just a quick note on the last two posts

HSBC Premier Account is a different animal

http://www.hsbc.co.uk/1/2/hsbc-premier/your-benefits

You would have to meet the requirements and ask about Thailand - Things obviously change. Once I set up with Bangkok Bank quite some time ago - it ws an uphill struggle with a visa on arrival from the UK at the time, but things have since greatly improved - I was very happy

Interesting on being able to obtain TAX ID's yourself - Because we are based in the UK we just gave all the work to Sigma Accounting. We personally need to create a greater level of reasurance in Thailand when dealing with financial institutions - Basically they are on guard regading money laundering.

From recollection withholding Tax I believe was not paid by our clients company - I belive this is handled by our accountant - I will ask again - Tax for property rental is interesting in that you rent both the property and contents separately.

Remitting the money to the UK has just become available to us with Bangkok Bank Third Party International Transfers.

They actually ask for a work permit ID to remit explicitly 'a salary' out of the country. In our particular case Bangkok Bank accepted Thai Tax Id's plus our accountant details to remit money earned in Thailand

Edited January 14, 2015 by pkrv

[KittenKong]

HSBC Premier Account is a different animal

http://www.hsbc.co.uk/1/2/hsbc-premier/your-benefits

You would have to meet the requirements and ask about Thailand - Things obviously change.

I know what HSBC Premier is, and how they work in the UK and elsewhere.

My point was that as far as I know the Bangkok branch of HSBC has stopped dealing with individuals and is only there for corporate clients now, so having an HSBC Premier account elsewhere may not help the OP much.

If you choose the right branch of the right bank it is generally quite easy to open an account here; the trick is finding out which branch/bank is best in your area. Generally it will be one with many farang customers.

[pkrv]

Interesting on HSBC - For us we used Bangkok Bank (BBL) Head Office on Silom, if you are in Bangkok I would recommend doing the same especially if you have a tourist type visa. Opening accounts with O/A visas are a diffent matter altogether.

It is also important to note that Thai banks operative a sort of provincial banking system. If your account is in Bangkok (with BBL), free cash withdrawls in Bangkok (with BBL machines) but you are charged to withdraw cash (at a Bangkok Branch machine) in say Chaingmai, and Vice versa.

[Globalist]

Generally speaking, withholding tax is for a buyer/renter/licensee to pay on behalf of a seller/landlord/licensor.

For what it's worth, I was told the following by an official at the Thai tax office: A renter does not have to pay withholding tax on condo rental if the landlord and the renter are both private persons rather than companies.

If that statement is correct, it would suffice to pay all tax retrospectively with the tax return.

[cheeryble]

Generally speaking, withholding tax is for a buyer/renter/licensee to pay on behalf of a seller/landlord/licensor.

For what it's worth, I was told the following by an official at the Thai tax office: A renter does not have to pay withholding tax on condo rental if the landlord and the renter are both private persons rather than companies.

If that statement is correct, it would suffice to pay all tax retrospectively with the tax return.

This is correct Globalist withholding is only for institutions.

FWIW if you register to pay tax on yr rental income you will be a rare bird.

I am the only person I know paying tax on rentals here.

I actually didn't think I was due to pay until I was in profit, ie income over years totalled more than investment, however this may only be the case for companies.

My accountants attitude.....quite a proper company too......was very relaxed about rental income.

I actually had to prod him to declare all as I wanted it clear.

It is of course perfectly legal to spread out the income with partner/agent keeping the tax bracket lower.

FYI the tax dept will do a blanket 30% allowance for all rental expenses so this comes straight off your income saves all the nonsense with receipts.

Edited January 19, 2015 by cheeryble