Transcript of the above video:

We are talking about service tax in the context of leasing here in Thailand. The reason I bring this up, we did another video where we talked about just direct property rental income tax in another video. 

What you will often see and I think this is the reason for so-called serviced apartments here in Thailand or serviced condos, is there is a different tax rate associated with service fees. For example, providence of furniture or cleaning services, housekeeping services, security services associated with given property, it is oftentimes at a lower rate than rental income tax. For this reason, you will often see a lot of leases in Thailand are bifurcated in their terms between the actual rental which may be on paper I won't say cheap but substantially cheaper than the total overall cost. Then there is the service cost which is sort of broken out as a separate thing within the agreement from the lease itself, from the actual paying of the rent.

Again, I think this is on a certain level to mitigate certain tax liability and also substantial services may be provided by the landlord, again: furniture, security, things like in some cases I have even seen laundry services provided, cleaning services, housekeeping services, these type of things. Again, that is a qualitatively different thing from renting and for this reason they are placed in two different categories, two separate types of tax apply and it is not uncommon to see this kind of setup especially in many residential leasing arrangements here in the Kingdom of Thailand.