Question 1

What Section 40 category does rental income fall under?

Accepted Answer

Rent from immovable property — houses, condos, commercial buildings, or land — is assessable income under Section 40(5), a category entirely separate from service fees or professional compensation. An individual landlord must include the full year's rent on the PND 90 return and, once income of this type crosses the statutory threshold, must also file the mid-year PND 94. Two deduction routes are available: a statutory flat rate that varies by asset type, with houses and buildings capped at 30%, or actual documented costs of maintaining the property if those exceed the flat rate. Landlords are best served by keeping separate income-and-expense records for each property from the start of the year.

Question 2

How is land and building tax calculated on a rented-out property?

Accepted Answer

Property leased out to generate income counts as commercial use and does not qualify for the lower owner-occupied residential rate, so it is taxed under the higher commercial rate of the land and building tax, computed on the combined appraised value of land and structure at the progressive rate set by the local authority. Owners must file and pay this tax to the local subdistrict or municipal office where the property sits by April each year. When only part of a building is rented out and the rest is occupied by the owner, the split in usage should be reported clearly so officials assess each portion at its correct rate, otherwise the entire building risks being assessed at the commercial rate.

Question 3

Are rent and service charges subject to VAT?

Accepted Answer

Rent for immovable property is exempt from VAT by law, regardless of whether the landlord is VAT-registered for some other business. Charges billed separately from rent — such as common-area fees, parking, electricity above the metered allowance, or extra cleaning services — are treated as service income and become subject to VAT once the provider's turnover exceeds the registration threshold. Operators leasing space bundled with add-on services should split these items clearly in the contract and invoice, distinguishing the exempt rent portion from the service portion that carries VAT, to avoid the whole contract sum being mis-assessed for VAT purposes.

Question 4

How much stamp duty applies to a lease agreement, and who pays it?

Accepted Answer

A lease agreement counts as a taxable instrument on the Stamp Duty Schedule, carrying duty of one baht per 1,000 baht — or any fraction of that amount — computed on the total rent due across the whole lease term. Statute assigns that duty burden to the landlord, although the two sides are free to agree in writing that the tenant will pick up the cost instead. What matters for the calculation is the full-term rent, not a per-month slice, and any subsequent renewal or extension pulls in extra duty on the added rent amount. Without the correct stamp affixed, the lease loses its standing as courtroom evidence, even while it continues to bind the two parties to one another under civil law.

Question 5

Do security deposits and advance deposits from tenants count as taxable income?

Accepted Answer

A security deposit held to be returned to the tenant at the end of the lease, with no portion applied against rent or damages, is not income to the landlord because it's merely held temporarily with an obligation to give it back, so it isn't included in taxable income for the year it's received. If, upon termination, the landlord forfeits some or all of that deposit to cover damages or unpaid rent, the forfeited amount becomes taxable income in the year of forfeiture. Landlords should book deposits as a separate liability line rather than as rental revenue, and adjust the books only when a forfeiture actually occurs, so each year's reported income stays accurate.

Question 6

How is depreciation calculated on a building held for rental?

Accepted Answer

A landlord who opts for actual-expense deduction and holds the property personally can claim depreciation on the building as a cost, generally at a rate of up to 5% per year of the building's cost basis, excluding land value, since land does not depreciate and cannot be depreciated for tax purposes. For a company holding rental property, depreciation must follow both Revenue Code rules and generally accepted accounting standards, which may set a different useful life and method than for an individual. Splitting the land value from the building value at the time title is transferred is a step often overlooked, yet it directly affects the depreciation base that can be claimed each year.

Question 7

Is it better to hold rental property personally or through a company?

Accepted Answer

Owning the property in one's own name keeps the paperwork lighter, since no financial statements or independent audit are needed, but income falls under the personal progressive scale, which tops out at 35% for high earners, and it loses access to company-only deductions such as director remuneration or, in some situations, interest on the acquisition loan. Owning through a company shifts the tax to the corporate scale, which can end up cheaper once income is sizeable, and opens up more room to plan around property-management deductions, though it means carrying continuous bookkeeping and yearly financial-statement filing obligations. Selling the asset back out of the company can then trigger tax twice over — once at the company level and again on shareholders when profits are distributed as dividends — so the decision should factor in the property's value, the rental income it generates, and how long it will realistically be held.

Question 8

Does short-term daily rental require a hotel-type licence?

Accepted Answer

Renting out accommodation on a daily or nightly basis in a manner resembling a hotel falls under hotel-business law regardless of whether the owner calls it a condo rental or a holiday-home let, and it therefore requires a hotel operating licence from the Department of Provincial Administration before opening for business, unless it qualifies for the ministerial exemption — for instance, no more than four rooms with a maximum of twenty guests combined, together with notification to the local authority as accommodation that is not a hotel. Renting daily without a licence risks criminal exposure under hotel law and also affects land and building tax status, which gets classified at the higher commercial rate the same as an ordinary hotel operation.

Question 9

How much withholding tax must a corporate tenant deduct from rent?

Accepted Answer

When a corporate tenant pays rent to a landlord — whether an individual or another company — it must withhold tax at 5% of the rent on every payment, per Revenue Department regulations, and issue the landlord a withholding certificate to keep as evidence. An individual landlord credits the amount withheld against tax on the annual personal return, and a corporate landlord credits it against annual corporate income tax the same way. One point worth flagging: a genuine refundable security deposit is not subject to withholding since it isn't yet income when received, so each payment needs to be identified as rent or deposit before applying the withholding rate.

Question 10

Renting a furnished unit with appliances — how should the tax treatment be split?

Accepted Answer

A lease that bundles furniture and appliances into a single rent figure without a separate price remains VAT-exempt rental of immovable property in full, because the furnishings are treated as fixtures let together with the building. But if the landlord itemises furniture or appliance rental separately from the building rent in the contract, that separated portion is treated as a lease of movable property and becomes subject to VAT once the landlord is VAT-registered or turnover crosses the threshold. Landlords with multiple furnished units should weigh whether itemising the price would trigger an unnecessary VAT registration obligation before locking in the contract's pricing structure.

Question 11

If a large lump-sum advance rent covers several years, must it all be taxed in the year received?

Accepted Answer

Under the general cash-basis rule of the Revenue Code, an individual landlord must include the entire lump-sum advance rent as income in the tax year it's actually received, even if that payment covers several future years of tenancy, which can push net income unusually high for that one year and into a steeper tax bracket. A company, using the accrual basis, may be able to recognise the income spread across each accounting period in proportion to the lease term, following applicable accounting standards. Owners planning to accept a large lump-sum advance should consult their accountant before agreeing on payment terms with the tenant, so the real tax impact is understood in advance.

Question 12

How is rental tax split when several co-owners jointly own the property?

Accepted Answer

Property registered under multiple co-owners on the title deed is treated as an ordinary partnership or a body of persons for tax purposes if the rent is received jointly without a clear split of income between the individual owners; in that case, the rental income may need to be filed under the body of persons first, with the remaining net income after expenses and tax then divided among the co-owners in proportion to their share. If each co-owner instead receives their proportional share directly from the tenant from the outset, each can simply file their own personal income tax return on their portion without setting up a body of persons. Which structure to use should be agreed before the lease is signed, with the payment method matching the chosen tax structure.

Question 13

Can renovation or repair costs for a rental property be fully deducted as an expense?

Accepted Answer

Routine repair costs that keep a property in working condition — repainting, fixing plumbing, or replacing a broken fixture — count as operating expenses fully deductible in the year paid under the actual-expense method. Costs that upgrade or extend the property significantly, such as adding a new room or replacing the entire roof structure, are capital expenditure that must be recorded as an asset and depreciated gradually over its useful life rather than deducted in full in one year. Misclassifying which bucket an expense falls into is one of the more common triggers for a back-tax reassessment, so itemised receipts describing the work done should always be requested.

Question 14

How is a foreign owner of a Thai condo taxed on rental income?

Accepted Answer

A foreign national earning rental income from property located in Thailand is liable for Thai personal income tax on that rent regardless of whether the owner has stayed in Thailand for 180 days or more, because this is Thailand-sourced income under the source rule rather than the residence rule. A Thai corporate tenant still must withhold 5% just as it would for a Thai landlord, and the foreign owner must file PND 90 or PND 91, depending on income type, to compute net tax due and claim credit for tax already withheld. If the owner's home country has a double tax agreement with Thailand, it's worth checking whether that treaty grants an exemption or reduced rate on this category of income.

Question 15

If a tenant defaults and disappears, is tax still owed on rent never actually received?

Accepted Answer

For an individual using the cash basis, rent only becomes income once it's actually received, so unpaid rent still owed by an absconded tenant is not included in taxable income for that year — but whatever is later recovered, in full or in part, becomes income in the year it's actually collected. A company using the accrual basis recognises rental income as it falls due under the contract even before cash is received, but it may later set up a doubtful-debt allowance or write the debt off as bad debt if the statutory conditions are met, such as documented collection attempts and legal action. Property owners should keep full records of unpaid amounts and collection efforts on file to support any future bad-debt write-off.

Question 16

What are the tax implications of subleasing a property rented from someone else?

Accepted Answer

A tenant who subleases a property with the original owner's consent has income from subletting under Section 40(5), just as a direct owner would, and must include the sublease rent received in taxable income while being able to deduct the rent paid to the original owner as an expense if using the actual-cost method with the lease and receipts kept on file. The difference between sublease rent collected and rent paid out is the net profit that gets taxed. It's also worth checking the original lease for any prohibition on subletting, since breaching that term can let the original owner terminate the agreement, even though that wouldn't undo any tax liability already incurred.

Question 17

With multiple rental units, how should records be organised for easy review?

Accepted Answer

Owners with several rental units are better off recording rent income and expenses per property rather than lumping every unit into one ledger, since each unit can carry a different rent rate, due date, and upkeep cost. Keeping the books separate makes it easy to spot which unit is running at a loss or has a tenant in arrears, and it keeps each building's depreciation calculation accurate. A lease register tracking each contract's start and end dates, rent rate, and renewal terms is worth maintaining, along with copies of withholding certificates received from each tenant filed by tax year, so reconciling reported income against tax already withheld at annual filing time is quick and accurate.

Question 18

If a property sits vacant with no tenant for part of the year, what land tax rate applies?

Accepted Answer

Land and building tax is assessed based on the property's use as of January 1 of the tax year; if the asset physically retains a commercial-building character or is regularly used as rental stock even though no tenant happens to occupy it on assessment day, it still falls under the commercial rate based on its inherent use, not its momentary vacancy status. Land or a structure left genuinely idle with no use whatsoever for three consecutive years gets reclassified into the vacant-land category, which carries a higher rate that keeps stepping up every further three years it remains unused. Owners should report the property's actual use to the local authority accurately to avoid being misclassified into the wrong category.

Question 19

If a property management firm or agent handles the letting, how is their commission taxed?

Accepted Answer

Commission or management fees paid to a property management company or letting agent count as a deductible income-generating expense when the owner uses the actual-cost method, provided there's an engagement contract and a receipt or tax invoice on file. Where the payer has a withholding obligation and the recipient is providing a general service, 3% withholding under Section 3 Bis applies to that fee. If the management company is itself VAT-registered, the property owner also needs to account for VAT charged on that service fee separately from the rent received, which remains VAT-exempt as before.

Question 20

If rental income is small, is a tax return still required?

Accepted Answer

The law sets a minimum income threshold that triggers the requirement to file a return, based on income type and taxpayer status; even a small amount of rental income still creates a filing obligation once that threshold is reached, meaning PND 90 must be filed even if the computation ends up showing no additional tax due, because the duty to file and the duty to pay are two separate things. Not filing despite meeting the threshold risks a criminal penalty separate from the surcharge for late tax payment. If other income exists too, such as a salary, the rental income must be combined with all other income types on the same return rather than filed on its own.

Question 21

If water and electricity are sub-metered and billed at cost to the tenant, is that taxable for VAT?

Accepted Answer

When a landlord installs sub-meters and bills tenants for water and electricity at exact usage cost with no markup, that recovered amount is still treated as a service subject to separate VAT consideration from the rent, because the Revenue Department views passing on utility costs as a service rather than exempt property rental. If the landlord is already VAT-registered or total turnover from all activities crosses the registration threshold, the utility charge must be included in VAT calculations even when billed at cost with zero margin. Landlords with several tenants should state in the lease that utilities are billed as a line item separate from rent, and keep the utility provider's invoices to compare against amounts billed, as proof no hidden margin was added.

Question 22

Can condo common-area fees and the sinking fund contribution be deducted as a rental expense?

Accepted Answer

The monthly common-area fee a unit owner pays to the condominium juristic person counts as an ordinary operating expense fully deductible in the year paid under the actual-cost method, provided a receipt from the juristic person is on file, since it's necessary to keep the property fit to let. The sinking fund contribution, usually collected once at transfer of title or occasionally for major repairs, behaves more like a long-term capital contribution to the building and generally shouldn't be deducted in full in a single year; it should instead be recognised gradually or folded into the asset's cost basis depending on how it was actually charged. Owners unsure how to classify such a lump sum should check how the juristic person's receipt describes the purpose of the charge.

Question 23

Is mortgage interest on a loan used to buy the rented property deductible?

Accepted Answer

Landlords deducting real costs rather than the flat rate can claim the interest paid on a loan taken out specifically to buy the rented-out unit, since that financing charge is directly linked to earning the rental income. Switching to the flat-rate deduction gives up that claim, since the flat figure already stands in for every expense category combined. Keeping the bank's yearly interest statement on file is the supporting evidence needed, and where one loan covered both a personal home and a rental property together, only the share of interest tied to the rental portion is deductible — the personal-housing share of that same loan cannot be claimed.

Question 24

What tax risk arises from letting a relative or affiliated company use the property rent-free or below market rate?

Accepted Answer

Renting property to a relative or affiliated company for free or at a rate well below market carries the risk that an assessing officer will impute market-rate rent and recompute the landlord's taxable income accordingly. This is especially relevant where a company lets a director or shareholder use company property free of charge, which can be treated as a benefit taxable to the recipient and can also affect the company's expense deductions. The principle mirrors the arm's-length standard applied between related parties. A landlord with a genuine business reason for charging below-market rent — for instance, as part of an employee benefit — should keep documentation supporting that rationale on hand for any audit.

Question 25

Does paying the condo juristic person's common fee require withholding tax?

Accepted Answer

Common-area fees a unit owner pays to the condominium juristic person are payments made to a juristic entity established under condominium law, and Revenue Department guidance has generally treated these as not requiring withholding tax, since the juristic person isn't operating for profit and the fees collected are used solely for maintaining shared property. That said, if the juristic person provides additional services beyond routine common-area upkeep — for example, renting out common space for events and charging a fee — that income may need separate consideration. A unit owner who is unsure should ask the juristic person directly whether a specific Revenue Department ruling covers their exemption before deciding not to withhold.

Question 26

How should income from an online booking platform such as Airbnb be reported for tax?

Accepted Answer

Income a host earns through an online booking platform remains rental income under Section 40(5) or may take on the character of a small-scale hotel operation, depending on frequency and service style, and the full amount received before the platform's service fee is deducted must be included as income. The fee the platform withholds counts as a deductible expense under the actual-cost method provided the platform's payout summary is kept as evidence. Hosts should download the platform's annual earnings report as documentation, since a formal receipt often isn't issued. Where the platform remits funds from abroad into a Thai bank account, the bank may flag the transaction for the kind of cross-checking the Revenue Department carries out using data shared by foreign authorities.

Question 27

If property is transferred to an heir while a lease is still active, what tax obligations fall on the tenant and the transferor?

Accepted Answer

When an owner transfers title to an heir or another person while a lease is still running, the existing lease continues to bind the new owner under property law if it was registered or otherwise meets statutory protection conditions, so the tenant keeps paying rent as before but to the new owner, who must start including rental income from the date of transfer onward in their own tax return. The former owner still must report rent actually received up to the date of transfer as usual. If the transfer is a gift between an ascendant and descendant with no consideration, part of it may be exempt under the gift-tax rules, though gift tax and the Land Department's transfer fees still need separate consideration.

Question 28

If someone already runs a VAT-registered business alongside pure property rental, must rental income count toward the VAT registration threshold?

Accepted Answer

Rent collected from immovable property carries its own VAT exemption regardless of whether the same landlord also operates a separate VAT-registered business, so that rental turnover stays out of the calculation used to test whether the VAT-liable business has crossed the registration threshold — each activity is judged on its own income character. Even so, an operator already registered for VAT on the main business still has to issue proper tax invoices only for the portion of sales that is genuinely VAT-liable, and must log the exempt rental receipts on a separate line in the output tax report so they never get blended in with taxable sales.

บัญชีภาษีธุรกิจให้เช่าอสังหาริมทรัพย์ ต้องรู้อะไรบ้าง

ลัดไปยังคำถามในหมวดนี้

แปลเอกสารและรับรองคำแปล

คำแปล NAATI สำหรับออสเตรเลีย

รับรองเอกสารโดยทนาย Notary Public

รับรองนิติกรณ์กรมการกงสุลและสถานทูต

Apostille ตามอนุสัญญาเฮก 1961

วีซ่าและใบอนุญาตทำงาน

หนังสือรับรองความประพฤติและตรวจประวัติอาชญากรรม

จดทะเบียนสมรสและเอกสารครอบครัว

บัญชี ภาษี และงบการเงินสำหรับธุรกิจในไทย

จดทะเบียนบริษัทและการถือหุ้นของชาวต่างชาติ

บัตรเดินทางนักธุรกิจเอเปค (APEC Business Travel Card)

นิติกรณ์เอกสารรายประเทศปลายทาง

เอกสารการศึกษาและใบรับรองวิชาชีพ

ทะเบียนราษฎร หย่า และรับบุตรบุญธรรม

งานแปลเฉพาะทาง สัญญา การแพทย์ และเอกสารคดี

บริการล่ามในงานราชการ ศาล และการเจรจาธุรกิจ

ที่ดิน คอนโด และสัญญาเช่าสำหรับผู้ซื้อชาวต่างชาติ

พันธสัญญา มรดก และการจัดการทรัพย์สินข้ามประเทศ

สัญญาจ้าง เลิกจ้าง และคดีแรงงาน

ส่งเสริมการลงทุน BOI และใบอนุญาตประกอบธุรกิจต่างชาติ

ภาษีบุคคลธรรมดาของชาวต่างชาติและการแลกเปลี่ยนข้อมูลบัญชี

ประกันสังคม กองทุนเงินทดแทน และสิทธิของลูกจ้างต่างชาติ

เครื่องหมายการค้า ลิขสิทธิ์ และทรัพย์สินทางปัญญา

ร่างและตรวจสัญญาธุรกิจ

บังคับคดีและสืบทรัพย์

คดีอาญาและการประกันตัว

ใบอนุญาตประกอบกิจการและ อย.

PDPA และการคุ้มครองข้อมูลส่วนบุคคล

ภาษีที่ดิน สิ่งปลูกสร้าง และค่าโอน

ล้มละลายและฟื้นฟูกิจการ

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e-Tax Invoice และระบบภาษีดิจิทัล

พิธีการศุลกากร นำเข้า-ส่งออก

แฟรนไชส์ ไลเซนส์ และตัวแทนจำหน่าย

อนุญาโตตุลาการและการไกล่เกลี่ย

ขายออนไลน์และธุรกิจดิจิทัล

ครอบครัวข้ามชาติ หย่า และอำนาจปกครองบุตร

หน้าที่รายงานตัวและการรักษาสถานะคนต่างชาติ

โอนเงินเข้าออกประเทศและหลักฐานแหล่งเงิน

สัญญาก่อสร้างและงานรับเหมา

สมาคม มูลนิธิ และองค์กรไม่แสวงหากำไร

ขอ อย. อาหาร เครื่องสำอาง และผลิตภัณฑ์สมุนไพร

วีซ่าพำนักระยะยาวในไทย

ใบอนุญาตทำงานและหน้าที่ของนายจ้าง

ภาษีรายได้ดิจิทัลและสินทรัพย์ดิจิทัล

ใบอนุญาตขนส่งและโลจิสติกส์

ใบอนุญาตโรงแรม สถานบริการ และสุรา

ภาษีมูลค่าเพิ่มและใบกำกับภาษี

ใบอนุญาตโรงงานและนิคมอุตสาหกรรม

ใบอนุญาตฟินเทค การชำระเงินและสินทรัพย์ดิจิทัล

ใบอนุญาตคลินิก สปาและธุรกิจสุขภาพ

การเปิดบัญชีธนาคารและการเข้าถึงสินเชื่อของชาวต่างชาติ

ใบขับขี่ การจดทะเบียนรถและการนำรถเข้าประเทศ

ใบสำคัญถิ่นที่อยู่ถาวรและการแปลงสัญชาติ

ใบอนุญาตธุรกิจนำเที่ยวและบัตรมัคคุเทศก์

นิติบุคคลอาคารชุดและหมู่บ้านจัดสรร

การไปทำงานต่างประเทศของแรงงานไทย

ใบอนุญาตโรงเรียนเอกชนและสถาบันกวดวิชา

ที่ดินเกษตรกรรมและเอกสารสิทธิ์แต่ละชั้น

ติดตั้งโซลาร์และใบอนุญาตด้านพลังงาน

งานเงินเดือน สลิปพนักงาน และภาษีหัก ณ ที่จ่ายรายเดือน

ขั้นตอนคดีแพ่งในศาลไทย ตั้งแต่ยื่นฟ้องถึงชั้นฎีกา

หมิ่นประมาท ข้อความออนไลน์ และความผิดทางคอมพิวเตอร์

ถูกสรรพากรตรวจสอบภาษี การประเมิน และการอุทธรณ์

งบการเงิน การสอบบัญชี และการรายงานให้บริษัทแม่

ภาษีหัก ณ ที่จ่าย ใช้อัตราไหน ยื่นแบบใด และแก้ผิดพลาดอย่างไร

ราคาโอนระหว่างบริษัทในเครือ เอกสารที่ต้องมีและวิธีตั้งราคา

ไกล่เกลี่ยและทำสัญญาประนีประนอม ทางจบคดีที่เร็วกว่าการสืบพยาน

ฟ้องหน่วยงานรัฐในศาลปกครอง เงื่อนไข ระยะเวลา และสิ่งที่ขอได้

ข้อพิพาทผู้ถือหุ้นและกรรมการ แก้ทางไหนได้ก่อนถึงศาล

คดีผู้บริโภค ฟ้องร้านหรือถูกลูกค้าฟ้อง ต้องเตรียมอะไร

ภาษีเงินได้นิติบุคคล ยื่นครึ่งปีและปลายปีให้ไม่ถูกปรับ

ย้ายสำนักงานบัญชีหรือเปลี่ยนระบบกลางปี ทำอย่างไรไม่ให้ข้อมูลหาย

งานเลขานุการบริษัท ทะเบียนกรรมการ ประชุมผู้ถือหุ้น และการนำส่งงบ

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