Thailand: Worked Example of Tax on Rent
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Tax Example: Rent
| Non-resident couple's joint monthly rental income2 | US$1,500 | US$6,000 | US$12,000 | |
| Annual Rental Income | 18,000 | 72,000 | 144,000 | |
| Less Standard Costs (30%)3 | (5,400) | (21,600) | (43,200) | |
| = Income after deduction of expenses | 12,600 | 50,400 | 100,800 | |
| Less Donation allowance (5% of income after deduction of expenses and allowances)4 | (1,260) | (5,040) | (10,080) | |
| = Taxable Income | 11,340 | 45,360 | 90,720 | |
| Income Tax Rates | ||||
| Up to THB10,000 | 0% | – | – | – |
| THB10,000 - THB500,000 | 10% | 1,114 | 1,114 | 1,114 |
| THB500,000 - THB1,000,000 | 20% | 20 | 2,785 | 2,786 |
| THB1,000,000 – THB4,000,000 | 30% | – | 5,252 | 18,860 |
| Over THB4,000,000 | 37% | – | – | – |
| = Income Tax Due | US$1,134 | US$9,151 | US$22,760 | |
| Less Withholding income tax (15% of gross income)5 | (2,700) | (10,800) | (21,600) | |
| Annual Income Tax Due | US$1,566 | US$1,649 | US$1,156 | |
| Tax due as % of Gross Income | 6.30% | 12.71% | 15.81% | |
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DISCLAIMER: The information contained above is marketing material only and is not written tax advice directed at the particular facts and circumstances of any person and should not be relied upon. We encourage you to discuss your particular situation with us or an independent tax advisor. This information was last updated on March 5, 2007.
Notes
1 Grant Thornton Thailand is a member firm of Grant Thornton International. Grant Thornton International is not a worldwide partnership. Member firms of the international organization are independently owned and operated.
2 The property is jointly owned by husband and wife.
3 Standard deduction of expenses is around 30% of the gross income. The option to claim actual expenses incurred in deriving rental income is allowed as long as the expenses are supported by documentary evidence.
4 Charity allowance is computed as 10% of the income after deduction of expenses and allowances (allowances are generally available just for residents). The charity allowance is available to all taxpayers.
5 A non-resident’s gross rental income is subject to 15% withholding tax, withheld by the tenant. The tax withheld is credited to the non-resident’s income tax liability.
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