Inheritance Tax Act B.E 2558
Published in the Royal Gazette on 5 August 2015
(Effective after 180 days from published date – 2 February 2016)
1. Tax payers
1) Individual and *Juristic person with Thai nationality
2) Person who is residing in Thailand
3) The person who received the legacies situates in Thailand
* Thai Juristic person: 1) registered in Thailand or 2) More than 50% of the capital held by Thai or 3) More than half of the management having Thai nationality
2. Taxable income
1) Immovable properties
2) Securities according to the Securities and Exchange law
3) Deposit or similar types of instruments payable to owners at call
4) Vehicle with registration
5) Other as defined by Royal decree
3. Except income
- A legacy received from a testator who dies before the Act come into force
- A legacy received by the spouse
- Heirs who will use this legacy for religious educational or public benefit
- Government authorized or juristic person that have as their objectives religious educational or public benefit
- Person or international person under the obligation of Thailand towards the UN or pursuant to international laws.
4. Tax calculation method (including deductions)
*The value of a legacy that exceeds 100 million Baht obtained from the testator either once or on several occasions at the rate of 5% the properties for heirs who are ascendants or descendants of the testator or 10% for other heirs.
*The value of a legacy: the value of all property inherited after the deduction of all liabilities therefrom determined based on the date of receipt as a legacy as follows:
1) In the case of immovable property, the value will be based on the government appraised value for the purpose of collecting fees for registering rights and juristic acts under the land code after deducting any obligation for eviction.
2) In the case of securities listed on the Stock Exchange of the Thailand (SET), the value of the securities as at the close of business of the SET (closing price) on the day on which the legacies are obtained shall be used.
3) Other case shall be according to the criteria stated in Ministerial Regulations.
For the translation of foreign currency to Thai currency, the conditions and criteria prescribed by the Revenue Department shall be used.
5. Inheritance Tax Rate
The value of a legacy (Baht)
Ascendants or descendant
6. Filing procedures
- Submit application to the revenue office branches within 150 days from the date on which the legacies were obtained.
- In the case of having filed the inheritance tax return within the due date, the assessment officers are required to assess tax within one year from the date of filing the return. The period will however be extendable, but not exceeding three years, if there are necessary and unavoidable reasons for which the Director-General of the Revenue Department will grant approval in a case by case basis.
7. Tax payment extension
- May pay the inheritance tax by installments, buts not exceeding five years.
- 1) For installments over a period of not more than 2 years, no surcharge (interest charge) is payable; and
- 2) For installment over a period of more than 2 years, a surcharge of 1.5% per month is additionally payable
- A claim of tax refund can be submitted within 5 years, no interest will be permitted.
9. Penalties and Punishment
- For failure to file the inheritance tax return within the time limit: 100% of the tax due
- For incorrectly calculation the amount of tax due when filing the tax return: 50% of the additional tax payment.
- For failing to file an Inheritance Tax Return without justifiable ground: not more than 500,000 Baht.
- For evading or attempting to evade the payment of Inheritance Tax: not more than 200,000 Baht or imprisonment for not more than one year or both
- For break, move, conceal or transfer of the property was seized or attached to other person: imprisonment for a term not exceeding two years and fine not exceed 400,000 Baht.
- (In case the offender is juristic person, the managing director, manager or the delegate of juristic person those involved in the offense of tax penalties)
The Revenue Department will issue laws and regulations regarding this matter later.
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