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Taxes on Rental Property Income in Thailand

Transcript of the above video

As the title of this video suggests, we are discussing taxes in the context of property rental in Thailand. For those who are unaware, there is a graduated tax system in Thailand. I am not going to get too deep into this. The accountants and the lawyers are vetting this here in the office. I am not a Thai Attorney, I am an American Attorney. I am the Managing Director of the firm. I am a naturalized citizen. Again, the Thai attorneys and the accountants here that work in our office that deal with tax matters in a property, in a corporate context are vetting this video. I am just going to talk about this purely from an informational standpoint.

There is a graduated tax system wherein there is different types of property tax associated with rental income, for example commercial versus residential rental income but for purposes of this video, the reason I am doing this is because someone asked me the question the other day: "Why do they have service departments with a number of service fees rather than it is just a rental?" Part of the reason is it may be to mitigate a little bit of tax liability because by making it a service fee, it puts it in a different perhaps lower tax bracket for that income as opposed to just the property rental income. That is just as a 'for example'. There may be a way to mitigate some tax liability in that way. Again in most situations that I have ever seen in any kind of tax situation; international, national, US, wherever; oftentimes mitigation is possible but fully getting out of taxes can be a real difficulty if not impossibility. 

So the thing to take away from this video is, yes there are property taxes in Thailand and then there are rental income taxes associated with the type of rental income being accrued and then there are service fees which may be of a totally different nature than rental income associated with property here in the Kingdom of Thailand.