Non Resident Taxes in Thailand
Nonresidents are still liable to pay taxes on income earned from Thailand sources as well as income received from foreign sources brought into Thailand. But nonresident who has lived in Thailand for a period less than 180 days is, within a tax year, only liable to file a tax return based on income earned from Thailand sources.
Personal Income Tax (PIT)
In Thailand the income chargeable to personal income tax is called assessable income. This income can either be in the form of cash or in kind (free housing or free use of company car). Nonresidents with Thai spouses have the option of having a joint tax liability, though the wife needs to file for a separate tax return on her employment. Non residents with a Thai spouse and child can include their allowances in his tax return. The filling of PIT should be done before 21st of March, in regards to the previous year’s income.
Rental Income Tax
Taxes on rental income are derived after deducting expenses incurred from gross income. Landlords are allowed to deduct 10-30% for rental income depending on the kind of property leased. Rental income is subject to a 5% withholding tax. This tax liability should be credited to the final figure, when submitting your income tax returns.
Capital Gains Tax
Tax on capital gains is based on the sale of immovable Thai property. Sellers are liable to receive deductions depending on how long the property was held before sale; the longer the period the smaller the deduction. If the property was received as a gift or inheritance, then owners are liable to receive a much larger deduction on the proceeds made from the sale (up to 50%).
The tax rate for income and capital gains made by companies is 30%. They are allowed to deduct expenses incurred from income generation. Other deductions liable to corporate entities include depreciation and interest payments on loans used to acquire property. If the company purchases and rents out property, the gross rent collected is subject to a 15% withholding tax.