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

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.