Thailand Rolls Out New Inheritance Tax

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bangkok-265036_640By Dezan Shira & Associates
Editor: Dustin Daugherty

Thailand’s government has announced the implementation of the country’s first inheritance tax in seven decades is to start in January 2016. The long-awaited tax was originally passed into law by the national legislature in May but only recently announced in the Royal Gazette.

Unveiled alongside a new gift tax of five to ten percent on gifts exceeding 20 million baht (US$560,000), the inheritance tax imposes the following levies on inherited assets:

  • Five percent levy on assets exceeding 100 million baht (US $2.8 million) inherited by descendants (children of deceased); and

  • Ten percent levy on assets exceeding 100 million baht (US $2.8 million) inherited by non-descendants.

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Under the new regime several classes of inherited assets qualify as taxable – property, securities, automobiles, and bank deposits, with further asset classes to be announced at a later date. Official land register values will be used when assessing levies on property, and the value of equities and other financial assets will be determined based upon their purchase price.

Important to note is that the tax eligibility of inherited assets is to be determined by whether or not the recipient is domiciled in Thailand. Such a stipulation means that the levy may apply to Thai citizens or non-Thai heirs living abroad who inherit Thailand based assets.

Additionally, the lower five percent levy also applies to assets inherited by ascendants, meaning parents of the deceased, and pre-inheritance gifts to spouses will not incur any levy regardless of whether they surpass the taxable threshold.

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The Thai government estimates the new tax will generate at least an additional three billion baht (US$84 million) in revenue per year. Earlier drafts of the law had called for a lower threshold of 50 million baht (US$1.4 million) for tax eligible assets

Considering the recent unveiling of a new investment promotion policy, Thailand looks set to remain an attractive destination for foreign capital.

Given the impending implementation of the new tax, the importance of strategic succession, estate, and tax planning in Thailand is only set to increase. While awareness of the upcoming levy is an important first step for investors, outside professional advice should be sought in order to best plan for the future and thereby minimize the financial burden of the new inheritance tax. For specialised tax advice, get in touch with us at


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