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 any Thai bank
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 GROSS income (before expense deductions) – unlike personal income tax (above) which is payable on your NET income (after expense deductions)
We understand that cashflow is needed sometimes, however to avoid paying withholding tax, we recommend waiting for your rental income payout until the financial year is finished, and your Personal Income Tax declared and paid.
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