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Is there Inheritance Tax in Thailand?

Inheritance Tax Contact ThaiWills We Can Help You
The Answer is Yes. The Inheritance Tax Act was enacted in 2014, when the then Prime Minister Prayuth Chanoocha announced new economic policy in Thailand.

The aim of such inheritance tax in Thailand, is to collect the taxes and use the same for the development of the country. This Act was notified in official gazette in 2015 and came into force in 2016. As per this legislation, if the ascendant or descendent acquire the property from deceased then they need to pay 5% of value of property[1], and in case of other statutory heirs the rate of tax shall be 10%[2].

Conditions:

  • If the inherited asset or property value is more than one hundred million baht, then the acquired has to pay the inheritance tax[3].
  • The value of the property is calculated on the date of inheritance and based on such value the inheritance tax has to be paid[4].
  • The Property which is acquired by a person through gifts cannot be taxed under this legislation.
  • If any person who is liable to pay the tax returns dies then the person who has inherited the property has to pay the tax within 150 days and there will be no penalty has to be paid.
  • The person who inherited the property of deceased has pay the tax returns to

the director general within 150 days from the date of such inheritance[5].

Is there Inheritance Tax in Thailand? Surprize-Yes! since 2014
Inheritance Tax in Thailand

Who are liable to pay inheritance tax in Thailand?

  1. A person of Thai nationality,
  2. A natural person of non-Thai nationality but having domicile in the Thailand according to law on immigration,
  3. A person of non-Thai nationality but receiving an inheritance which is an asset situated in Thailand,
  4. A juristic person who registered in Thailand and holds shares of more than fifty percent of the registered and paid-up share capital[6].

Who are not liable to pay inheritance tax?

  1. An inheritance received from a deceased person by the spouse if the deceased person,
  2. Person receiving an inheritance from a deceased person who has expressed his/her intention of using such property for religious, educational purpose or for the public benefit activities,
  3. State Agencies and Juristic person whose objective is religious and educational purpose,
  4. Person or international organizations under commitments between Thailand and the United Nation[7].

What are subjects on which Inheritance tax has to pay?

  1. Immovable properties,
  2. Securities under the law on securities and exchange,
  3. Deposits or any other monies of the same characteristics which may be withdrawn or claimed by a deceased owner from the financial institutions or person who had received such monies,
  4. Vehicles with registration,
  5. Financial assets to be prescribed by Royal Decrees[8].

[1] Inheritance Tax Act, 2016, §.16 (Thailand)

[2] Id.

[3] Id. §.12

[4] Id. §.15

[5] Id. §.17

[6] Supra Note:1, §.11

[7] Id. §.13

[8] Id. §.14

Speak with ThaiWills.com today about getting ahead of any liability you, or your loved ones may have for inheritance tax. A quality financial planning manager could also help you. Use the contact form below and we will help you sort this today! 

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