Tax on Rental Income in Thailand — Section 40(5), the 30% Deduction, and Filing PND 94 and 90 Without Mistakes

Many owners of a rented-out condo assume tax is for big investors, or that if nobody withheld anything there is nothing to file. In fact every baht of rent is assessable income that must be declared, whether you own one unit or ten — and as the Revenue Department links more financial data, monthly rent transfers leave a trail that can be checked retrospectively. The good news: rental tax for individuals is straightforward, and filed correctly, the real burden is usually lower than people fear.

What Kind of Income Is Rent?

Under the Revenue Code, income from letting property falls under Section 40(5): rent from houses, condos, buildings and land, plus money from breached hire-purchase or instalment-sale contracts. You declare rent actually received in the tax year (cash basis), not rent due under the lease. If a tenant is two months behind, those months count only when paid.

A common question is whether deposits count. A deposit you must return at the end of the lease is not income. But if you retain part or all of it — to cover unpaid rent or damage — the retained amount becomes income in the year you keep it. Rent received in advance is income in the year of receipt.

Expenses: Flat 30% or Actual

You may deduct either a flat-rate allowance by property type or actual, necessary and reasonable expenses supported by full documentation:

Property let	Flat-rate deduction
Houses, buildings, structures, rafts (incl. condos)	30%
Agricultural land	20%
Non-agricultural land	15%
Vehicles	30%
Other property	10%

For most people the flat 30% is simpler and better value. Actual expenses — repairs, common fees, fire insurance, furniture depreciation — need receipts and a genuine link to earning the rent. A frequent misunderstanding: mortgage principal is not an expense, and loan interest is only deductible under the actual-expense method when you can show it relates to that income, which makes things considerably more complex. Actual expenses pay off only when they clearly exceed 30% of rent and your records are well organised.

Two Filings: Mid-Year and Year-End

Section 40(5) income is among the categories requiring a half-year return:

1. File PND 94 for January–June rent — due by the end of September of the same year (online filing usually gets extra time); tax is computed on half-year rent less expenses and certain allowances.
2. File PND 90 for the full year — due by the end of March the following year, combining rent with other income such as salary and applying progressive rates.
3. Credit tax already paid — both the PND 94 payment and any tax withheld by tenants reduce the annual liability; overpayments are refunded.
4. Keep records for at least five years — leases, proof of receipts, withholding certificates and expense receipts if using actual expenses.

Corporate Tenants: Does 5% Withholding Settle It?

When the tenant is a company — say, leasing a unit for a foreign employee — it must withhold 5% of the rent and issue a withholding certificate. You receive 95%, but that 5% is only a prepayment. You must still declare 100% of the rent and then credit the 5%. Owners with modest total income may even receive a refund. Request the certificate from the tenant every year.

Worked Example

A salaried employee earns THB 600,000 a year and lets a condo for THB 15,000 a month — THB 180,000 a year. Using the flat 30% (THB 54,000), net rental income is THB 126,000. Added to salary after the usual deductions and allowances, this rental slice is taxed at whatever bracket the person falls into. In the 10% bracket, the extra tax from rent is about THB 12,600 a year — roughly 7% of rent received. That is why tax belongs in your net-yield calculation before you buy.

FAQ

I let one unit with modest rent. Do I still need to file?

Yes. The duty to file and the duty to pay are separate. Even if the calculation produces no tax because total income is low, once your income reaches the statutory threshold you must file a return.

Is daily letting via platforms treated the same as monthly leases?

Not quite. Short-stay letting can be viewed as operating accommodation, raising hotel-law issues as well. Research your specific case before adopting that model.

We co-own the condo as a married couple. How do we file?

Rent from marital property can be split half each or declared entirely by one spouse — choose whichever minimises the household's total tax.

Conclusion

Rental tax isn't frightening once you see the structure: Section 40(5) income, a flat 30% deduction, PND 94 mid-year and PND 90 at year-end, with withheld tax fully creditable. Getting it right from the start removes worry about retrospective audits and reveals your property's true net return. Read more landlord guides on the MyProperty blog or browse investment condos at MyProperty listings.