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 Donation allowance4||10||(1,260)||(5,040)||(10,080)|
|= Taxable Income||11,340||45,360||90,720|
|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%|
Global Property Guide
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.