On 05 Aug 2015, the Inheritance Tax Act BE 2558 was gazetted, putting into effect from 1 February 2016 laws that subject Inheritances to tax in Thailand.

This Insight summarizes the taxation of Inheritances under the Act.

Taxation of Inheritance Income

From 01 Feb 2016, the effective date of the Inheritance Tax Act, inheritances are prescribed as assessable (taxable) income subject to tax in Thailand, as follows:

Persons and Property Subject to Inheritance Tax

For a person who is a Thai national or permanent resident of Thailand under the immigration law		Subject to tax on the net value of the inherited property either in Thailand or outside Thailand that exceeds 100 million Baht
For a person who is neither a Thai national nor a permanent resident under the immigration law		Subject to tax on the net value of the inherited property in Thailand which exceeds 100 million Baht
For a corporate entity established under Thai law or foreign law that has more than 50% of the paid up capital held by Thailand nationals or more than 50% of management being Thai nationals		Subject to tax on the net value of the inherited property either in Thailand or outside Thailand that exceeds 100 million Baht

Tax Payable by Persons Subject to Inheritance Tax

For a person who is a ascendant or descendant of the deceased		5% tax on the net value amount* of the inherited property that exceeds 100 million Baht
For a person who's not a ascendant or descendant of the deceased		10% tax on the net value amount of the inherited property that exceeds 100 million Baht

* The net value amount is:

• The gross value of the inherited property; less
  
• The value of liabilities assumed on inheriting the property.
  

Persons Exempt from Inheritance Tax

• Persons receiving inherited property before 1 February 2016; and
  
• Persons who are spouses of the deceased.

Inheritance Tax Returns and Tax Payments

Persons subject to Inheritance Tax are required to file an Inheritance Tax Return and pay the 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, 1.5% per month or fraction of a month surcharge shall also be payable.

Penalties and Punishment

For failing to pay Inheritance Tax in the prescribed time		Surcharge (interest charge) of 1.5% per month or fraction of a month
For failing to file an Inheritance Tax Return within the prescribed time		Penalty of 100%
For failing to file an Inheritance Tax Return without justifiable ground		Fine of not more than 500,000 Baht
For intentionally avoiding payment of Inheritance Tax		Fine of not more than 200,000 Baht or imprisonment for not more than one year or both

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