Rental Income Tax in Thailand: A Practical Guide

Is Rental Income Taxable in Thailand?

Yes. Rental income from Thai property is assessable personal income under Section 40(5) of the Revenue Code. This applies whether you are:

• A Thai national
• A foreign national who owns Thai property (foreigners can legally own condominiums in Thailand on a freehold basis)
• A Thai tax resident or a non-resident earning rental income from a Thai property

Non-residents are taxed on Thai-sourced income even if they do not spend 180 days in Thailand. Rental income from Thai property is Thai-sourced income.

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How Rental Income Tax Is Calculated

Step 1: Choose Your Expense Deduction Method

You have two options for deducting expenses from your gross rental income:

Option A: 30% Flat-Rate Deduction (Most Common)

Deduct 30% of gross rental income automatically, with no receipts or documentation required. Net assessable income = 70% of gross rent.

This is the standard approach for most individual landlords. It is simple, requires no paperwork, and is accepted by the Revenue Department without question.

Option B: Actual Expense Deduction

Deduct documented actual expenses including repairs, maintenance, management fees, insurance, and depreciation. This requires receipts and records.

Only worthwhile if your actual costs genuinely exceed 30% of gross rent — which is uncommon for residential lettings.

Step 2: Apply Progressive Tax Rates

Your net rental income is added to your total assessable income for the year. Progressive income tax rates apply after all allowances and deductions (personal allowance, employment deduction, etc.).

Step 3: Claim Withholding Credits (If Applicable)

If a company paid you rent and withheld 5%, claim this as a credit against your total tax liability.

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Worked Example

Scenario: A single expat earns 30,000 THB per month from renting a Bangkok condo. No other income.

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Withholding Tax from Corporate Tenants

If your tenant is a company (not an individual), the company is legally required to withhold 5% of rent at source before paying you. This is common when renting to businesses, multinational companies, or organisations.

What this means in practice:

• Your tenant pays you 95% of the agreed rent and remits 5% directly to the Revenue Department
• They issue you a withholding tax certificate showing the amount withheld
• You include the gross rent (100%) in your income on your PND 90 return and claim the 5% withholding as a tax credit

Important: Corporate tenants are supposed to provide this certificate automatically, but some do not. Actively request it — you need it to claim the credit.

Individual tenants (private renters) have no withholding obligation. They simply pay you the agreed rent in full.

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Filing Threshold for Rental Income

The filing threshold for rental and investment income is lower than for salary income:

• Single individual: 60,000 THB per year in rental income (gross) triggers a filing requirement
• Married couple: 120,000 THB per year combined

This means even modest rental income — such as renting a spare room — may require you to file a PND 90 return.

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Rental Income from Overseas Property

If you are a Thai tax resident and own rental property abroad:

• Income from overseas property is not taxable in Thailand if it remains offshore — only remitted income is taxable
• If you transfer overseas rental income to a Thai bank account, it becomes assessable income in Thailand
• The Double Tax Agreement between Thailand and the property's country may allow a foreign tax credit for tax already paid in the source country

Practical approach: Keep overseas rental income in a foreign account. Transfer capital or older savings (not the rental proceeds themselves) to cover your Thai living expenses.

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Tips for Property Owners in Thailand

1. File PND 90 — rental income cannot be declared on PND 91 (which is for employment income only)
2. Collect withholding certificates from corporate tenants proactively — don't wait for them to offer
3. Keep lease agreements for at least 5 years (the Revenue Department audit window)
4. Declare all rental income — the Revenue Department has access to Land Department records of registered leases
5. Consider the 30% flat deduction unless your documented actual costs clearly exceed this
6. Foreign rental income: make a conscious decision about whether to remit it to Thailand, as once remitted it is taxable