This means that if you buy rental property in Thailand and it makes a profit, then you'll have to declare that income here in New Zealand as well as in Thailand.
Secondly, there is a Double Tax Agreement between Thailand and New Zealand, so tax paid in each country is taken into account.
How does it work then?
If you own property in Thailand in your personal name then you'd be required to file for it there, and then declare the income here as well. NZ would calculate the tax paid there, and what should have been paid here. If there is a difference in your contra, then you'll have to pay the difference to IRD. If the difference is in your favour, then you don't get a tax credit: you just won’t have to pay any more.
Thailand Tax Information
Corporate income tax rates:
Personal income tax
Info sourced from:
So, you’d need to get advice from a Thailand-based accountant obviously, but a Thai company would pay between 20-23% tax, and then a 12.5% property tax on top. However, as it is all in THB this still may be relatively low in NZD. So this may well be the best way to go.
For the UK, see this article; for Australia, check out this blog; for Malaysia, see here; Singapore? See this article.
We have no affiliation with or endorsement from KPMG or Thailand-Property.com.
Accounting for your rental residential investment property; general taxation advice.