When a company pays for an employee’s housing rent, it can be a tax-deductible expense for the company for Corporate Income Tax (CIT) purposes.

However, it is generally considered an assessable income for the employee subject to Personal Income Tax (PIT) and withholding tax, unless specific conditions are met, such as the accommodation being provided for work duties at a remote site.

General Criteria CIT Deductibility

• The accommodation is provided as a benefit of employment.
• The expense is necessary for the company’s business operations.
• The lease agreement is in the company’s name.
• The benefit is uniformly provided or based on clear company policy/position.
• Not merely a personal expense of the employee.
• Rental cost is referable to market price.

Documentation Needed For CIT Deduction

• Rental agreement or lease contract in the company’s name.
• Proof of payment (e.g., bank transfer slips).
• Payment receipts from the landlord.
• Employee’s employment contract or company policy detailing housing allowance/benefit.
• Company Policy and Internal Regulation on outlining and budget for the benefit.
• Withholding tax certificates (PND.3) for the rent paid to the landlord.

References

• Thai Revenue Code, Section 65 ter (3) (General expense deductibility)
• Thai Revenue Code, Section 40(1) (Assessable income for employees)
• Revenue Departmental Instruction Paw. 23/2533 (Regarding housing fringe benefits)