Inheritance Tax: An Overview

What is it?

Any asset obtained collectively through inheritance with a total value exceeding 100 million THB is subject to taxation at a rate ranging from 5% to 10% of the total value.

Who is Subject to this Taxation?

There are 4 categories that would make a person subject to paying inheritance tax as defined by Section 11 of the Inheritance Tax Act B.E. 2558 (2015):

1. A Thai citizen.
2. A non-Thai citizen with a residency in Thailand.
3. A non-Thai citizen receiving inheritance in Thailand.
4. A juristic person (company and partnership) registered in Thailand or having Thai-citizen shareholders for more than 50%.

Here are the following heirs who are subject to the Act:

1. Descendants;
2. Parents;
3. Grandparents;
4. A person who is not related to the family bloodline.

However, Section 3 of this Act exempts the testator who died prior to 29 July 2015 (the day of the enforcement of this Act) and the spouse from taxation in this regard.

Subject to Taxation

There are 5 assets subject to inheritance tax under Section 14 of the Act:

1. Immovable properties (land, house, and condominium).
2. Securities (stock, debenture, debt and equity instruments, mutual fund, derivatives,  treasury bill and bond).
3. Savings.
4. Registered vehicles (car and motorcycle).
5. Other financial assets (stay tuned for royal decrees in the future).

However, there are certain assets which are not subject to inheritance tax:

1. Life insurance.
2. Unnamed objects (accessories, artwork, archaeological objects and sculpture).
3. Assets given to a registered spouse.
4. Assets given to charity, foundation, academic institution, and the temple.
5. Assets given to foreign public domains (United Nations and Embassies).

When to Pay Tax?

After receiving inheritance, you have 150 days to declare and pay inheritance tax with the Revenue Department as stated by Section 17 of the Act.

In case a taxpayer is deceased within the deadline period but has not completed a tax payment, an executor shall pay the tax on the decedent’s behalf within 150 days after the date of assigning the executor, according to Section 18 of the Act.

Should there be no assignment of the executor, and the taxpayer is deceased within the period of 180 days, the heir is required to pay inheritance tax on the decedent’s behalf within 150 days from the date the 180-day period has lapsed by virtue of Section 19 of the Act.

Inheritance Tax Law in Thailand can be complicated and may change often. It’s really important to keep up with these changes. It’s a good idea to talk to a tax expert in Thailand who can give you advice that fits your situation and help you follow the most recent rules. Staying updated and getting advice from professionals are important for handling your money matters well, both in your country and in other countries.

If you have any more questions or need more help, feel free to reach out to us.

Category: Property