According to the Thai Revenue Code, a tax resident is a Thai national or a foreigner who resides in Thailand for more than 183 calendar days within a calendar year.
However, for a foreigner to file taxes as a tax resident, it is mandatory to obtain a Tax Identification Number. This requires confirmation of a source of income in Thailand, for example, real estate.
If you rent out such property through a management company and receive income, the management company will withhold tax from your income at the following rates:
- 5% — if you are a tax resident of Thailand
- 15% — if you are not a tax resident
At the same time, if you are a tax resident, you are required to file a tax return on all income received during the calendar year by March 30 of the following year.
If rental income is combined with salary or other income, the total tax rate may be significantly higher than 5%, as Thailand applies a progressive personal income tax scale: the higher the income, the higher the tax rate.
For non-residents of Thailand, the 15% rate is final and is not subject to further recalculation.
Author: Aleksandra Agapitova.
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