Income tax on rent, worked example, in Thailand
Taxation Researcher | 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.