In B.E. 2476 (1933), Thailand had the Inheritance Tax Law but it was canceled 11 years later because the amount of the taxation budget was not worth the amount of tax received. Then in 2558 (2015). Inheritance Tax Law Act B.E. 2558 (ITLA) was issued again. This law effectives from 1st of February 2559 (2016) but this doesn’t mean all inheritor have to pay tax under this law.
Who is not the taxpayer under Inheritance tax law?
An inheritor who receives an inheritance of the deceased (DE CUJUS) who died before the 1st of February B.E. 2559.
A lawful spouse of the deceased. A lawful spouse means a legal marriage accordance to the law of the country of the marriage. When the marriage is made in Thailand it must be registered with the Family Department at District office. When the marriage is made abroad it must be accordance to the law of the country the marriage is made. In option, the marriage between a Thai and a Foreigner which is made abroad can be register the marriage at the Thai Royal Consulate at this country too, in accordance to Section 1457 and 1459 of Civil and Commercial Code, Section 3 of ITLA and Section 19 and 20 of the Conflict of Laws Act B.E. 2481 (1938).
Does another always has to pay Inheritance law?
No, it does not. An inheritor who has received an inheritance not more than 100 million THB does not have to pay inheritance tax under this law accordance to Section 12 of ITLA.
Who is the taxpayer under Inheritance Tax law?
If your deceased died from the 1st of February B.E. 2559 and you are not legal spouse of the deceased and you received the inheritance more than 100 million THB (real estate, share in mutual fund/stock market, saving and register vehicle etc.) then you have to pay Inheritance Tax. It is no matter you are Thai, foreigner, a natural person, a juristic person, a full of age, a legal incompetence (a minor, virtual incompetent person etc.), either you are a heir at law or a heir at will accordance to Section 3, 11, 12 and 14 of ITLA (see also a legal incompetence person at Section 7).
What is Inheritance Tax Rate?
There are 2 tax rates, 5% or 10 % of the received amount of inheritance. 5% tax rate apply to an inheritor who is an ascendants or a descendant, 10% tax rate apply to another inheritor accordance to Section 16 of ITLA.
When to pay and what is the penalty of this law?
Inheritance taxpayer must apply to the revenue department to pay his inheritance tax within 150 days from the date of received of the inheritance. If not, 1 time tax penalty of the received amount of inheritance shall be applied and/or the maximum criminal fine of 500,000THB. If the inheritance taxpayer apply a false or incomplete information, the 0.5 time tax penalty of the complete or the true amount of inheritance and/or imprisonment for not more than 1 year shall be applied accordance section 29, 33 and 37 of ITLA.
If you not agree with the amount of tax payment the officer call for, you have a right to appeal within 30 days from the date of receiving the call but during appeal procedure you still have to pay this tax except if you’re allowed to not pay according to section 27 and 28 of ITLA.
Good news, tax rates (acceptable tax avoidance) is allowed. If you are a taxpayer under Inheritance Tax Law, it is a good idea for tax planning that you can decide how to exercise your right of your property.
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