Thai Inheritance Tax?

**BaitongBoy** · 16-07-2011, 06:15 PM

Does a Thai person have to pay inheritance tax after receiving cash from his/her father? Or not?

**aging one** · 16-07-2011, 06:26 PM

I sure dont believe so and if there is a blind eye is turned.

**dirtydog** · 16-07-2011, 09:47 PM

Many foreigners are concerned when they ask us at PAPPA Co., Lt.d Law Office to draw up a legal and enforceable Last Will and Testament (10,000 baht) for them that their Thai heirs will pay additional estate taxes. Additionally, when presents like gold or a house (amazing what we are willing to give that special Thai!) are given this sometimes raises the concern that a gift tax will somehow be invoked. Both inheritance taxes and gift taxes are common in Western countries so these are reasonable concerns.

Inheritance Tax and Gift Tax per se, do not exist in Thailand. Money or value received as a named beneficiary in a will or the legal next of kin in the absence of a will is not subject to a special tax in Thailand.The value is subject to ordinary personal income tax only.

For the complete article with more details and application to foreigners read the article in the Pattaya Times newspaper in the exclusive column called, "Ask Drew Noyes" available to the TeakDoor.com forum exclusively at the link below:

Pattaya Newspapers - Newspapers In Pattaya Thailand - Inheritance Tax and Gift Tax in Thailand - Ask Drew Noyes

Best wishes,

Drew Noyes
Managing Director
P.A.P.P.A. Co., Ltd. Law Office
Pattaya Times Media Corp.

Telephonic:
Office +66 38.301.050 in Thailand 038.301.050
Fax +66 38.301.045 in Thailand 038.301.045
Mobile +66 84.111.7999 in Thailand 084.111.7999

**BaitongBoy** · 17-07-2011, 06:18 AM

^ Thanks DD...

**William** · 23-07-2011, 05:56 AM

I believe that DD is right if the property is located in Thailand and the will is governed by Thai law. However, if either the property is located outside Thailand or the will is governed by a foreign law then this might not be the case. I also understand that this may not necessarily be the case if the beneficiary is a dual national.

But in the case of a Thai national, inheriting Thai property, under a Thai will, then no IHT is currently payable (there was a review of this taking place before the change in government and this may be subject to change in time)

**Thormaturge** · 23-07-2011, 06:56 AM

^
I have no dealings with this aspect for Thai nationals, although the comment by PAPPA and Co. that "The value is subject to ordinary personal income tax only." concerns me since Thai Personal income Tax rates are far more onerous than the UK Inheritance Tax.

As for British citizens, Inheritance tax applies to anyone who is a UK Domicile and once you are born in the UK it is notoriously difficult to argue that you are not a UK domicile. You need to have spent at least 17 years outside the UK AND to have severed all ties with the country. Strictly speaking all Brits living in Thailand are chargeable to IHT on their worldwide assets upon death. Of course most people do not have sufficient assets to warrant a charge.

**BaitongBoy** · 23-07-2011, 08:29 AM

^ Yes, Thormaturge, that sentence about "the value being subject to ordinary personal income tax only" did not go unnoticed.
The next question would be: If this is true, how much tax does one pay? Is it a percentage of the received amount?
It does seem onerous, given the fact that a lot of Thais don't seem to pay or worry about taxes.
And yes, this is a case that is limited to Thai people inheriting Thai property.

**William** · 31-07-2011, 04:51 AM

^BB - Thai income tax is stepped.

Here's a link to the Revenue Department page on Personal Income Tax rates

::Personal Income Tax::

I believe a lot of people in Thailand do not pay personal income tax because it requires you to submit a tax declaration form, rather than the PAYE system they have in the UK, and most people 'forget'

**Thormaturge** · 31-07-2011, 06:10 AM

^
Thailand does have a PAYE system for employees but bear in mind that you have to be earning more than ThB 20,000 per month in order to pay tax, and many Thais do not earn that much.

What concerns me about the statement by PAPPA & Co is that for non-earned income, where there is no other source of income in the year, Personal Income Tax commences at ThB 180,001. If Thai inheritance Tax really does start at this level then it would be far more onerous than the UK.

For those already earning a good income the Inheritance Tax would commence at 37% with absolutely no exemptions at all since the exemptions and lower tax bands would be utilised by their earned income.

I have no dealings with Thai Inheritances but this stiikes me as unworkable.

**BaitongBoy** · 31-07-2011, 03:22 PM

Found this on google: AngloINFO

Wealth, Inheritance & Gift Tax

There is no wealth tax in Thailand. There is no inheritance tax as such but a person who receives cash or property as a result of the death of another may be liable to pay income tax.

There is no gift tax in Thailand.

Note the word "may" be liable to pay income tax. Perhaps this is used just before the last sentence for a reason because a person could be "gifted" cash or property and thus be exempted from tax. I just can't see it any other way unless I'm missing something. I mean it can't be a "random" thing like a lottery: some win, some don't...some pay, some don't...but TIT...if a lot of money is involved...

I know that this has been generally mentioned in previous posts...I think the "gifting" issue is of key importance...

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