Navigating Thailand’s Inheritance Tax: Thresholds, Rates, and Compliance
Navigating Thailand’s Inheritance Tax: Thresholds, Rates, and Compliance
Thailand imposes an inheritance tax under the Inheritance Tax Act B.E. 2558, administered directly by the Revenue Department. The tax applies to the net value of Thai-located estate assets received by each individual heir, impacting both Thai nationals and foreign beneficiaries.
Key Thresholds and Rates
- Tax-Free Allowance: The first THB 100 million of inherited property value per heir is exempt from tax.
- Ascendants and Descendants Rate: A 5% tax rate applies to the portion of inherited net value exceeding THB 100 million for direct lineage heirs.
- Other Beneficiaries Rate: Unrelated heirs or non-direct family members pay a 10% tax on the amount exceeding THB 100 million.
- Filing Window: The beneficiary or estate administrator must file the tax return with the Revenue Department within 150 days of receiving the inherited property.
If a foreign daughter receives Thai inherited property valued at THB 130 million, the initial THB 100 million is exempt from taxation. The remaining THB 30 million is taxed at the direct descendant rate of 5%, resulting in a THB 1.5 million tax bill. If the recipient were an unrelated heir, the 10% rate would apply to the THB 30 million excess, yielding a THB 3 million tax liability. Non-resident foreign heirs must coordinate with their estate administrator to meet the official 150-day reporting window.
