Tax on property income in Thailand

Taxation Researcher | January 11, 2023

INDIVIDUAL TAXATION

Nonresidents are liable to tax on income derived from Thai sources. Married couples may opt to have joint tax liability; although the wife needs to file a separate tax return on her employment income, the couple´s combined taxable income will essentially be credited to the husband´s.

Personal income tax returns must be filed on or before 21 March in respect of taxable income received during the preceding calendar year.

INCOME TAX

Nonresident taxpayers can avail of the spouse allowance and child allowances only if their spouse or children are residents of Thailand. No other allowances are extended to nonresident taxpayers.

INCOME TAX

TAXABLE INCOME, THB (US$)
TAX RATE
Up to 150,000 (US$4,498) 0%
150,001 – 300,000 (US$8,997) 5% on band over US$4,498
300,001 - 500,000 (US$14,995) 10% on band over US$8,997
500,001 – 750,000 (US$22,493) 15% on band over US$14,995
750,001 – 1,000,000 (US$29,990) 20% on band over US$22,493
1,000,001 – 2,000,000 (US$59,982) 25% on band over US$29,990
2,000,001 – 5,000,000 (US$142,857) 30% on band over US$59,982
Over 5,000,001 (US$149,954) 35% on all income over US$149,954
Source: Global Property Guide

RENTAL INCOME
The taxable income is determined after deducting expenses incurred from gross income. A standard deduction of 10% to 30% is permitted for rental income depending on the type of property leased.

The standard deductions for rental income vary according to the rental income classification:

  • income from buildings and wharves - 30% of income
  • income from agricultural land - 20% of income
  • income from all types of land - 15% of income
  • income from vehicles - 30% of income
  • income from other types of properties - 10% of income

If houses, buildings, and floating houses are rented out by the owner, 30% of the gross rent can be deducted for expenses. The actual expenses incurred can be deducted, especially if it is higher than the standard deduction stated above, but it must be supported by documents.

Rental income is subject to a 5% withholding tax.This tax is then credited to the final tax liability of the taxpayer, when he files an income tax return.

CAPITAL GAINS

Capital gains derived from the sale of immovable property are taxed at the standard income tax rates.

PROPERTY TAXATION

LAND AND BUILDING TAX

The Land and Building Tax came into effect in 2020 and is based on the assessed value of the property. The tax rates are 0.30%-1.20% from the assessed value yearly. For residential properties, the rate is 0.30%

Various deductions are available for residential property owners whose name is on the house registration book.