Long Term Leases Null & Void

[cbrib 354]

Some of the expats have quite successful rental businesses. They may own a half a dozen condos and enjoy a good monthly income. Most of those guys like to rent to farangs. I think it's just a matter of time before the government comes knocking on their door for taxes and back taxes. With immigration cracking down, the renters need a document stating where they live from the owner of the house or condo. It's just a matter of the government putting 2 and 2 together and finding out who the owners are. I'm surprised that hasn't happened already. The tax law already exists.

 

I can see how this would apply to a foreign owned unit. What about those in a Thai company? Wouldn't the yearly audit and roughly 15K of taxes cover that?

[Idefix 2,275]

I think it's just a matter of time before the government comes knocking on their door for taxes and back taxes.

It's already happening. I have read on a forum about DanceWatcher, a company who rent condos in VT6,

sending an email to people who already reserved for an agreed price,

asking them to pay more because they now have some VAT to pay...

[Gary 4,119]

 

I can see how this would apply to a foreign owned unit. What about those in a Thai company? Wouldn't the yearly audit and roughly 15K of taxes cover that?

 

Owning condo's with a bogus company likely puts you in an even worse situation than just paying taxes.

[MM 6,562]

It's already happening. I have read on a forum about DanceWatcher, a company who rent condos in VT6,

sending an email to people who already reserved for an agreed price,

asking them to pay more because they now have some VAT to pay...

That's just the VAT which is recoverable.

 

Income tax would be the killer for rental owners.

[Parkwahn 61]

Iam renting a 4.5 million house (well that is what the owner has it advertised for) for 15000 , thats 4%.

What is asked and what is paid is two different things....

[torrenova 644]

That's just the VAT which is recoverable.

 

Income tax would be the killer for rental owners.

 

But that is what is coming along with straightforward property taxes on valuation.

[torrenova 644]

It's already happening. I have read on a forum about DanceWatcher, a company who rent condos in VT6,

sending an email to people who already reserved for an agreed price,

asking them to pay more because they now have some VAT to pay...

 

What the Thais should do but likely won't is to allow offset of some property taxes against income taxes. As westerners mostly pay no taxes, they will have nothing to offset and the government will collect in full but it would allow tax paying expats and the Thais to have some threshold before they start paying these taxes.