Inheritance tax scheme in Thailand

In 1933, Thailand had initiated a scheme for the collection of inheritance taxes. Due to a strong opposition, the scheme was however abolished in 1944. The current government has planned to reform Thailand’s tax system in order to reduce the income disparity gap between rich and poor social classes. The new Inheritance Tax Act B.E. 2558 (2015) effective since February 1^st, 2016 is applicable to following cases:

A. Persons subject to inheritance tax

– Thai Individuals and Thai Juristic Persons;

– Non-Thai Individuals who are resident in Thailand according to the immigration law;

– Non-Thai Individuals and Juristic persons who are inheriting assets located in Thailand.

B. Property subject to inheritance tax

– Immovable properties;

– Securities according to the Securities Market law;

– Bank deposit accounts or other money of a similar nature which the testator has the right to call back or claim from financial institutions or persons who hold such money;

– Registered Vehicles;

– Other financial assets to be specifically prescribed by Royal Decrees.

C. Inheritance tax rates

Inheritance tax is levied on recipients of certain types of assets valued aggregately at more than 100 million Baht upon flat rate as follows:

– 0% for spouse;

– 5% for ascendants or descendants;

– 10% for others.

Introduction of the new inheritance tax scheme is one of the key tax reforms in Thailand to serve the government’s attempt to increase fairness and boost the kingdom revenues from wealth.

Wipawee Dumrongcharusathien, ORBIS TH Accounting Manager