This information is for reference only and is not legal advice. Consult a licensed lawyer before any transaction.
Revenue Code - Personal Income Tax (rental & residence)
Revenue Code (PIT)
The information is reviewed and updated monthly against official sources.
In short
The personal income tax provisions of the Thai Revenue Code define what counts as taxable income (including rent), set who is a tax resident, govern how foreign and Thai-source income is taxed, and prescribe deductions, withholding, rates, and annual filing duties relevant to property owners and expatriates.
Section 40: Categories of assessable income (incl. rent)
This section lists the eight income categories subject to personal income tax. Income from letting property, plus from breach of hire-purchase or instalment-sale agreements, falls under category (5). It also covers employment, fees, goodwill, dividends, interest, professional fees, contract work, and business income, with any tax paid on a person's behalf counted as income.
Section 41: Tax residence and source of income
Income from employment, business, or property located in Thailand is taxable here regardless of where it is paid. A person present in the country for 180 days or more within a tax year is treated as a resident and is taxed on foreign-source income to the extent it is brought into Thailand. Rental income from Thai property is always taxable.
Section 42: Exempt income
Certain receipts are excluded from assessable income, including reimbursed work travel costs, qualifying inheritances and gifts within statutory ceilings, maintenance and support payments, some sales of movable property acquired without profit intent, and various items specified by royal decree. These exemptions reduce the base before allowances and rates are applied.
Section 42 bis: Standard deduction for employment income
For salary and similar employment earnings, a fixed-rate deduction of 50 percent is allowed, capped at 100,000 baht in total (figure as currently amended). This represents notional expenses and applies before personal allowances. Property rental income is not deducted here but under the separate rental-expense rules.
Section 43: Expense deduction for rental income
Deductible expenses for income from letting property are determined by royal decree. Landlords may claim either a fixed percentage of gross rent (commonly 30 percent for buildings and land) or actual, documented costs. Choosing actual costs requires proper records and proof, which can be advantageous when real expenses exceed the flat rate.
Section 47: Personal allowances and reliefs
After expenses, a taxpayer subtracts statutory allowances: a personal allowance, spouse allowance, child allowances, and reliefs for items such as life insurance, qualifying retirement funds, and home-loan interest. Donations to approved hospitals and educational bodies are further deductible within a percentage cap. Allowances directly lower net income before the rate schedule.
Section 48: Computation and progressive rates
Net income, after expenses and allowances, is taxed under the progressive schedule running from an exempt band up to a top marginal rate of 35 percent. For taxpayers with substantial non-employment income above a threshold, an alternative minimum computation at a low percentage of gross income may apply, with the higher result payable.
Section 50: Withholding tax at source
Payers must deduct tax when making certain payments. Salaries are withheld on a graduated basis; interest and dividends at set rates. For rent paid by a company or other withholding agent, a percentage (commonly 5 percent) is withheld and remitted to the Revenue Department. The landlord credits the withheld amount against final annual liability.
Section 56: Annual return filing
Every taxpayer, except minors and legally incapacitated persons, must file an annual return by 31 March reporting the prior year's assessable income. Filing is required once income exceeds modest statutory thresholds, which differ for single and married taxpayers and for employment-only versus other income. Resident foreigners with Thai rental income fall within this duty.
Section 57: Filing through representatives
Where a taxpayer is a minor, legally incapacitated, absent abroad, or deceased, the legal guardian, manager, agent, estate administrator, or heir must file the return and pay the tax on that person's behalf. This ensures rental and other Thai-source income remains assessable even when the owner cannot personally file.
Section 52: Remittance of withheld tax
A person who withholds tax under the income-tax rules must remit it to the district revenue office within seven days after the end of the month in which payment was made. Failure to withhold or remit makes the payer jointly liable for the tax, a risk for companies leasing property from individual landlords.
Section 60 bis: Assessment on understated rent
Where an official has grounds to believe declared rent is below market, the income may be reassessed at the reasonable rental value for comparable property under ordinary conditions, and that figure is treated as the taxpayer's assessable income. This discourages artificially low rents on Thai property to cut tax.