Thailand does not have a real property tax system and, there are two local taxes applicable to people who own immovable property.
Allowances may be granted if the owner utilizes the land for personal dwellings, animal This tax is also levied on. It is said that the rates are so low that officials do not usually bother to collect on a yearly basis. houses, buildings or any other improvements built on the land.
Taxable property under the House and Land Tax includes houses not occupied by the owner, industrial Owner occupied residences are exempt from this tax. Note, however, that the amount of the highest. , that this exemption applies to to individuals, not to juristic persons, not juristic persons are deemed to use their property commercially. In other words, a company that purchases an office has to pay the tax, even if the company uses the contracts to serve It's a project to replace the house and Land Tax with a real property tax within 2 years, and the rate would be 0.01% up to 1% of the estimated value of the property, depending upon th The rate would be 0.01% on agricultural land, 0.1% on personal residences; 0.5% on commercial buildings and 1% on undeveloped land.
The first agreement will be for the rental of the condominium unit and the second agreement will be provided for the rental out of this furniture and the additional tax included. the property, but not on the rental income received from renting out the furniture, etc.
If the rental agreements are executed between two individuals, there is a VAT on the furniture or service agreements. If, however, the owner of the condominium is a company and if the company is registered for the VAT, then the VAT will apply at 7% on the furniture or service agreements executed between the lessor and the lessee.
For example, if you rent out condominium in Pattaya fully furnished for a rental fee of THE 60,000 per month and only make one agreement with your Lessee, then you & # 39; ll have to pay a yearly House and Land Tax as follows: 60,000 x 12 x 12.5% = THE 90,000. You can save on taxes legally by simply breaking the rental fee down into two agreements. For example, the rental fees may be THE 35,000 per month for rent out the condominium and THE 25,000 for rent out If you break the rent down in this way, the Land and House Tax will be only THE 35,000 x 12 x 12.5% = THE 52,500. If, however, the owner of the condominium is a company registered for VAT, Even so, the company owning the property will save money on taxes, because the Lessee supports the cost of the VAT.
When an individual leases a property to another individual in Thailand, the payment of the rent is not subject to toholding taxes. The amount withheld must be paid to the owner who must be taxed as a tax credit against the annual income tax. 5th in in Thailand. Note that when a rental fee is paid outside Thailand, the amount of the tax to be withheld from the payment is 15%. non-resident offered a rental guarantee by a developer, never forget to take the withholding tax into account when calculating your potential income.
