Useful Owner Info
What Taxes Will I Need to Pay on Rental Income?
What Taxes Will I Need to Pay on Rental Income?
As the owner of a Koh Lanta property, you are eligible to open a savings account with some Thai banks
The funds from your rental income must be deposited into your savings account and you should pay your house expenses from this account too.
For details on the accounting needed to satisfy the Thailand Revenue Department see 6 Legal Essentials For Property Rental (point 5)
Once you’ve established your annual profit amount (total income minus total expenses), the following tax is applicable:
PERSONAL INCOME TAX
| Profit (THB) | Tax Amount (%) |
|---|---|
| 0 – 150,000 | 0 |
| 150,000 – 300,000 | 5 |
| 300,000 – 500,000 | 10 |
| 500,000 – 750,000 | 15 |
| 750,000 – 1,000,000 | 20 |
| 1,000,000 – 2,000,000 | 25 |
| 2,000,000 – 4,000,000 | 30 |
EXAMPLE: Profit 1,000,000 THB
deduct allowance 90,000 THB = 910,000 THB taxable income
Personal Income Tax 97,000 THB (see table below)
| Profit (THB) | Tax Amount (%) | Actual Tax Amount (THB) |
|---|---|---|
| 0 – 150,000 | 0 | 0 |
| 150,000 – 300,000 | 5 | 7,500 |
| 300,000 – 500,000 | 10 | 20,000 |
| 500,000 – 750,000 | 15 | 37,500 |
| 750,000 – 1,000,000 | 20 | 32,000 |
| 1,000,000 – 2,000,000 | 25 | 0 |
| 2,000,000 – 4,000,000 | 30 | 0 |
| TOTAL TAX | 97,000 |
WITHHOLDING TAX
If you require a payout of some of your rental income before the end of the current tax year (Dec 31), you’ll be liable to pay a withholding tax (5% if you have a Thai tax ID number, 15% if you dont)
This tax is payable on your payout amount, and is deducted from the personal income tax that you will owe at the end of the year
Example 1 (as above): Profit 1,000,000 THB, personal income tax calculation = 97,000 THB
Paid out during the year 900,000 THB (witholding tax payable 5% = 45,000 THB)
Personal income tax payable = 97,000 THB – 45,000 THB (witholding tax already paid) = 52,000 THB
Example 2: Profit 300,000 THB, personal income tax calculation = 7,500 THB
Paid out during the year 300,000 THB (witholding tax payable 5% = 15,000 THB)
Personal income tax payable 7,500 THB – 15,000 THB (witholding tax already paid) = -7,500 THB – refunded to you by the Revenue Department
Example 3: Profit 150,000 THB, personal income tax calculation = 0 THB
Paid out during the year 150,000 THB (witholding tax payable 5% = 7,500 THB)
Personal income tax payable 0 THB – 7,500 THB (witholding tax already paid) = -7,500 THB – refunded to you by the Revenue Department
How we got this information
Since 2010, we’ve been managing rental properties in cooperation with accountants and the Thai Revenue Department
We make sure your accounts are correctly recorded and declared, and make sure your taxes are correctly calculated according to current laws.
For more information and case studies please contact us