With taxes filed for another year, it's worth examining how the process applies to different residents.

All Thailand-sourced income is taxable, including Phuket rental income, regardless of where you live, and is based on your marginal income tax rate.

Withholding tax depends on your residency, and comes due as the rental income is collected.

Tax residents of Thailand must withhold 5% if the income is paid from a “juristic person”.

Rent received from an individual has no withholding tax, while if you are not a Thai tax resident, the withholding tax is a flat 15%.

Owners may take a 30% deduction for upkeep and expenses, but if you’ve spent more than this, you may itemise your deductions. 

Assuming you have a rental income on your Phuket condo of US$1,500 per month (about B47,000 per month, totalling about US$18,000 per year), your tax payable would work out to 3%.

On rental income of $144,000 per year (US$12,000pm), it would still be less than 16%.

If you’re renting out a leasehold villa, you’re not the owner of the property, but are technically sub-letting it. As such, you are not entitled to the deduction.

Penalties for not paying tax can be as much as the unpaid tax bill itself, with a 1.5% surcharge added for every month payment is not made.

The Revenue Department has four offices in Phuket, including the main Revenue Department for Phuket Province.

Source: Phuket News

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