New inheritance tax law set to take effect early 2016

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BANGKOK, 9 August 2015 – The government has affirmed that the new inheritance tax law, which will become effective next year, is aimed to do away with social inequality.

According to Deputy Government Spokesperson Maj Gen Sansern Kaewkamnerd, the Inheritance Tax Act 2015 and the Revenue Code Amendment Act 2015 concerning the transfer of premortem inheritance have already been published in the Royal Gazette this August 5. The two newly-approved legislations are scheduled to come into effect in 180 days following their publication or around January 2016.

Once imposed, the inheritance tax law will subject inheritors to 10 percent tax on the excess of their received asset’s value over 100 million baht. Nonetheless, if the asset is obtained from blood relatives, the tax will be reduced to 5 percent.

Maj Gen Sansern is confident the collection of inheritance tax will encourage the wealthy to donate their properties to charity organizations for the benefit of the public. Eventually, it is expected to help narrow economic gaps in the Thai society while concurrently boosting state revenue and supporting national development.