Thailand Inheritance Tax
On 5 August 2015, the Inheritance Tax Act BE 2558 was gazetted and puts into effect, from 1 February 2016, laws that subject Inheritances to tax in Thailand.
Inheritance Tax is one of the tax reform measures of the Military-appointed government that aims to combat economic and social inequality in Thailand and to boost the Government's revenues to develop the country.
A summary of the taxation of Inheritances under the Act is as follows:
Persons and Property Subject to Inheritance Tax
Net Value of Inherited Property
The net value of inherited property is the gross value of:
The Inheritance Tax rates are flat rates of 5% or 10%, as follows:
Persons Exempt from Inheritance Tax
Persons exempt from Inheritance Tax are:
Inheritance Tax Returns and Tax Payments
Persons subject to Inheritance Tax are required to file an Inheritance Tax Return and pay the Inheritance Tax within 150 days from the date the inherited property is received.
For persons unable to pay the tax within the 150 days period, the Act permits the tax to be paid in installments over 5 years, but for installments over 2 years or more, a surcharge of 1.5% per month or fraction of a month shall also be payable.
Penalties and Punishment
The Inheritance Tax Act BE 2588 prescribes the normal types of penalties and punishment in Thailand for tax non-compliance, including:
This is a general information Tax Insight Article only. It should not be used to determine any particular matter without consulting with an experienced Thailand tax advisor.