Details of Thailand’s new Inheritance Tax, and the implications for property owners in the Kingdom, have been revealed.
Known as The Inheritance Tax Act 2015 that will come into effect in January 1, 2016, Deputy Prime Minister’s Office Spokesperson, Major General Sansern Kaewkamnerd, stated the objectives of the new tax were to make wealthy people contribute to society, encourage their offspring to fend for themselves, bridge economic and social gaps and boost the state revenues.
The new law will apply to all groups of endowment recipients.
If the inheritance is worth more than THB 100 million and recipients are descendants of endowers, tax of 5 percent will be collected from the above THB 100 million inherited parts, he said. Grantees who are not descendants of the bequeathers will have to pay tax of 10 percent.
If an owner transfers his or her property worth more than THB 10 million to a person unconditionally while he or she is still alive, the receiver will be required to pay tax of 5 percent, which will be collected from the above THB 10 million inherited parts.
If the receiver is the offspring of the endower and the given property is worth more than THB 20 million, the receiver will be required to pay tax of 5 percent based on the above THB 20 million mark.
Items which are considered to be inheritance include estates, bank deposits, shares or debentures, vehicles and financial assets.
