This information is for reference only and is not legal advice. Consult a licensed lawyer before any transaction.
Inheritance Tax Act
Inheritance Tax Act B.E. 2558 (2015)
The information is reviewed and updated monthly against official sources.
In short
Thailand's Inheritance Tax Act B.E. 2558 (2015) taxes only the portion of an heir's inheritance from any one deceased person that exceeds 100 million baht, at 5% for ascendants/descendants and 10% for other heirs, with the deceased's spouse fully exempt.
Section 2: Entry into force
The Act took legal effect 180 days after its publication in the Government Gazette, which placed it in operation from early February 2016. Estates left by persons who died before that date fall outside the tax entirely, so the timing of death determines whether inheritance tax can apply at all.
Section 3: Non-application and spouse exemption
The tax does not reach two situations: estates of persons who died before the law began, and anything a surviving husband or wife receives from the deceased. A legal spouse therefore pays no inheritance tax on assets inherited from their partner, regardless of how large the estate is.
Section 11: Who is liable to pay
Three categories of heirs are taxable: Thai nationals, foreigners legally domiciled in Thailand under immigration law, and any foreigner who inherits an asset located in Thailand. A foreign buyer of Thai property should note that the third category captures non-resident heirs purely because the inherited asset sits in the Kingdom.
Section 11 (juristic persons): Corporate heirs treated as Thai
A company that inherits is treated as Thai (and taxed accordingly) if it is registered or formed under Thai law, if Thai nationals hold over half its paid-up capital when entitlement arises, or if Thais make up more than half of those with managerial control. This prevents using foreign-looking corporate structures to dodge the tax.
Section 12: 100-million-baht threshold
Tax applies only to the part of an inheritance exceeding 100 million baht received from a single deceased person, counting all transfers from that person together. The taxable value is the worth of inherited assets minus debts assumed with them. The threshold is reviewed every five years against inflation and adjusted by Royal Decree.
Section 13: Threshold exemptions for charitable purposes
The 100-million-baht rule does not apply to inheritances directed toward religious, educational or public-benefit aims: gifts the deceased intended for such causes, state agencies and entities pursuing those goals, and recipients covered by Thailand's commitments with the UN or reciprocal international arrangements, all within categories detailed in ministerial regulations.
Section 14: Assets subject to tax
Only specified asset classes are taxed: immovable property (land and buildings), securities regulated under securities law, bank deposits and similar claimable funds, registered vehicles, and further financial assets named by Royal Decree. Resident heirs are taxed on worldwide assets in these classes, while non-resident foreign heirs are taxed solely on assets located in Thailand.
Section 15: Valuation of inherited assets
Assets are valued as of the date the heir receives them. Real estate uses the official appraised capital value applied for land-registration fees, reduced by third-party rights; listed securities use the exchange closing price on the receipt date; other assets follow ministerial rules. Foreign-currency values convert at rates set by the Revenue Department.
Section 16: Tax rates: 5% and 10%
The standard rate on the taxable excess above 100 million baht is ten percent. A reduced rate of five percent applies where the heir is an ascendant (parent, grandparent) or a descendant (child, grandchild) of the deceased. The lower family rate does not extend to siblings or unrelated heirs, who pay the full ten percent.
Section 17: Filing and payment deadline
An heir must file a return and pay the tax within 150 days of receiving the inheritance that triggers the liability, at an Area Revenue Branch Office or another designated place. The assessment official then has up to one year (extendable to three on justified grounds) to complete the formal assessment.
Section 18-19: Death of the heir before payment
If a liable heir dies before filing, the estate administrator must file and pay within 150 days of appointment, with surcharges and (if the original deadline had already passed) penalties. Where no administrator is appointed within 180 days of death, the next entitled heir assumes the duty; multiple heirs must agree on one responsible person.
Section 23: Payment in installments
An heir may spread payment over up to five years under conditions set by Royal Decree. Full and timely payment under the installment scheme avoids the surcharge, although a partial surcharge can be imposed where the installment period runs beyond two years. This eases the burden when the estate is illiquid, such as property-heavy inheritances.
Section 24: Tax refunds
An heir who paid tax that was not due or overpaid may claim a refund by filing a request with supporting documents within five years of full payment. The official reviews within 150 days and the Revenue Department repays approved amounts within thirty days of completing the review. No interest is paid on refunded tax.
Section 25: Recovery of tax arrears
Unpaid tax becomes arrears, and the Director-General may seize, attach and auction the debtor's assets anywhere in Thailand without a court order. Auction proceeds first cover fees, costs and the arrears, with any balance returned to the owner. This gives the authority strong direct enforcement, including against inherited real estate.
Section 26: Appeals against assessment
An heir who disputes an assessment may appeal to the Commission of Appeal within thirty days of receiving notice. The Commission, chaired by the Revenue Director-General, normally decides within 180 days. A dissatisfied heir may then sue in the Tax Court within 180 days of learning the decision; appealing does not by itself suspend payment.
Section 29-31: Penalties and surcharges
Failing to file carries a penalty equal to the tax due; an incomplete or false return that understates tax draws a penalty of half the shortfall. Late payment adds a surcharge of 1.5% per month (reduced to 0.75% during an approved extension), capped at the amount of tax owed. Penalties and surcharges are themselves treated as tax.