Taxation Trends Unveiled at C9 Hotelworks Sessions on Thailand’s Hotel License Regime at HOMA, Phuket
June 2024
Phuket, Thailand – On Friday, 31 May, C9 Hotelworks hosted a unique 90-minute co-working lunch learning session at HOMA Cherngtalay in Phuket, exploring Thailand's hotel license regime for branded residences, condo hotels, mixed-use projects, and vacation rentals. The event attracted numerous industry leaders and stakeholders.
Paul Ashburn from HLB Thailand spoke at the event on "Vacation Rental Tax Primer for Owners and Operators." In his presentation, he revealed that higher taxation is viewed as the most significant risk over the next five years by wealthy families in Southeast Asia. This concern, highlighted in the UBS Global Family Office Report 2024, has surpassed other major issues such as climate change and geopolitical conflicts.
Furthermore, he explained Thailand's self-assessment system for income tax collection, enforced through tax audits. He noted that vacation homes in Phuket have come under increased scrutiny by tax authorities in recent years. The way income from these properties is characterized—whether as rental income or accommodation services—can significantly impact the taxes payable.
Foreign property investors who face a 15% withholding tax (WHT) on their gross rental income might be eligible for a refund when they file their tax returns at the end of the fiscal year, which can reduce the overall tax burden and enhance their net return on investment (ROI).
The event was a resounding success, thanks to the efforts of Bill Barnett and the C9 Hotelworks team. Their dedication to addressing critical issues in the hospitality sector continues to provide valuable platforms for discussion and knowledge sharing.
As the vacation rental market in Phuket and beyond evolves, understanding the intricacies of taxation remains essential for owners and operators to effectively navigate the fiscal landscape and optimize their investments.
About HLB Thailand
HLB Thailand has a long tradition of serving international and local clients and today is one of the leading international accountings and advisory firms in Thailand specifically in Bangkok and Phuket.
We are one of only 30 audit firms in Thailand approved by the SEC to audit entities in Thailand’s capital markets.
About HLB
HLB International is a global network of independent advisory and accounting firms. We have a history of innovation, collaboration and are dedicated to helping our clients grow across borders. Formed in 1969, we service clients through our member firms in 157 countries, with 47,755 partners and staff in 1,069 offices worldwide.
Learn more about us and tell us what matters to you by visiting www.hlb.global
HLB refers to the HLB International network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.hlb.global/legal for further details.
About C9 Hotelworks
C9 Hotelworks is led by founder and Managing Director Bill Barnett, who brings over 30 years’ experience in the Asian hospitality and real estate sectors. Prior to founding C9 in 2003, Bill held senior executive roles in hotel operations, development, and asset management. He is considered a leading global authority on hotel residences and has sat at almost every seat around the hospitality and real estate table. Bill promotes industry insight through regular conference presentations at key events and contributes to numerous industry publications. For more information contact www.c9hotelworks.com
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Thai rental properties and personal income tax
Foreign investors looking to purchase rental properties in Thailand will often have the choice of purchasing the property in their own name or in an offshore company. The preferred ownership structure will require a careful analysis of the respective costs and benefits, taking into account the particular circumstances of the owner.
From a tax perspective, this will require consideration of the tax laws in Thailand as well as the tax laws in the owner’s home jurisdiction and an analysis of the impact on the investment returns after tax if an offshore company is interposed between the owner and the property.
An important tax issue to consider is the taxes payable on rental income.
