Tax Example: Rent
March 12, 2018
| Non-resident couple's rental income1 | ||||
| Monthly Rental Income2 | 1,500 | 6,000 | 12,000 | |
| Annual Rental Income | 18,000 | 72,000 | 144,000 | |
| Less Expenses3 | 30 | (5,400) | (21,600) | (43,200) |
| Less Donation allowance4 | 10 | (1,260) | (5,040) | (10,080) |
| = Taxable Income | 11,340 | 45,360 | 90,720 | |
| Income Tax5 | ||||
| Up to THB 150,000 | 0% | - | - | - |
| THB150,000 - THB 300,000 | 5% | 214 | 214 | 214 |
| THB300,000 - THB 500,000 | 10% | 277 | 571 | 571 |
| THB500,000 - THB 750,000 | 15% | - | 1,071 | 1,071 |
| THB750,000 - THB 1,000,000 | 20% | - | 1,429 | 1,429 |
| THB1,000,000 - THB 2,000,000 | 25% | - | 4,197 | 7,143 |
| THB2,000,000 - THB 4,000,000 | 30% | - | - | 10,073 |
| Over THB 4,000,000 | 35% | - | - | - |
| Annual Income Tax Due | 491 | 7,483 | 20,502 | |
| Less Withholding income tax6 | 15% | (2,506) | (10,800) | (21,600) |
| Annual Income Tax Due | 2,209 | 3,317 | 1,098 | |
| Tax due as % of Gross Income | 2.73% | 10.39% | 14.24% | |
| Source: Global Property Guide |
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Notes
1 The property is jointly owned by husband and wife. (Separate taxation is allowed exclusively for the wife's employment income.)
2 Exchange rate used: 1.00 US$ = 35.00 THB
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 Income is taxed at progressive rates.
6 A nonresident's gross rental income is subject to 15% withholding tax, withheld by the tenant. The tax withheld is credited to the nonresident's income tax liability.
Personal income tax returns must be filed on or before 21 March in respect of taxable income received during the preceding calendar year.
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