Properties Rental Tax

Individual

The method of tax calculation will be taken 3 steps, those are :

1. less expense

2. Gross income x 0.005

3. Compare 1 & 2 and apply the higher one.

There are 2 choices of expense deduction to submit personal income tax.

 

Tax range
Personal income tax rate
1-150,000	0%
150,001-500,000	10%
500,001-1,000,000	20%
1,000,001-4,000,000	30%
4,000,001 over	37%
A. The Lessor provides the evidence to the officer, sucessfully proves that the actual expenses exceed the standard deduction allowed, necessary and reasonable expenses may be deducted. Note : the expenses is proved by the officer's judgement.

Example
Rental income/month : 40,000 Baht
Step 1
Rental income/year	480,000
Less Expense (maintenance)	100,000 (proper bill)
	380,000
Less Personal Allowance	30,000
	350,000
Calculate tax
1-150,000 (0% )	-
150,001-500,000 (10% )	20,000
	20,000
Step 2
Rental income 480,000 x 0.005	2,400
Step 3
step 1 is higher so the person pays tax at	20,000

B. Standard deduction of 30% expenses (*** mostly used)
Example : Rental income/month : 40,000 Baht
Step 1
Rental income/year	480,000
Less Expense 30%	144,000
	336,000
Less Personal Allowance	30,000
	306,000
Calculate tax
1-150,000 (0% )	-
150,001-500,000 (10% )	15,600
	15,600
Step 2
Rental income 480,000 x 0.005	2,400
Step 3
Step 1 is higher so the person pays tax at	15,600

Juristic Person
Note : Rental income has to be shown in the Financial Statement to calculate the corporate income tax Expense of accounting, commission, staff salary or reasonable expense can be deducted the income.
Corporate Income Tax
1. 30% (share capital over 5 MB)
2. SME (share capital not over 5 MB), see tax range below :
1-150,000	0%
150,001-1,000,000	15%
1,000,001-3,000,000	25%
3,000,0001 over	30%