Real estate rental business It tends to continuously grow. At present, the hotel business, dormitory business, or other rental business Becoming more widespread Since the income from real estate business is quite high Business owners can charge a lot of other services in addition to the rent, such as parking fees, water bills, electricity bills and much more. And of course, when having an income it is necessary to pay tax Many of you may not yet know about the taxation of the rental business. In this article, I would like to summarize the tax payment to be easy to understand for those who are starting to study this type of business.
Paying taxes for the rental business
1. Personal income tax
First, let's explain the word income tax. Income tax means If we have income, then the tax must be paid. Which will be divided into corporate income tax and personal income tax By paying tax that is calculated as follows
Personal income tax = tax rate x net income (total income - expenses - allowances)
Corporate income tax = taxable profit (income - expense) x tax rate
2. Value-added tax
Renting a house, building, or apartment The law exempt VAT But if the business has income from other services more than 1,800,000 baht per year, it is also necessary to pay VAT. And when registering for VAT The business must collect VAT from customers, issue tax invoices to customers. And prepare the input tax report
3. House and land tax
This property tax will be collected from the rent. It has a tax rate of 12.5% of the rental rate which is a very high rate. Therefore, it is recommended that business owners divide the lease into 2 contracts, lease and service contracts.
4. Stamp duty
The business owner will have to pay a stamp duty of 1 baht per the rent limit of 1,000 baht.
Once you understand some tax issues for the rental business, are you? Doing a real estate business needs to be studied well before investing. And for any entrepreneur who wants to manage their business more conveniently and easily, we have Component MDRental, a management tool for the rental business. This component will help you manage your business with ease. More effective