Beruflich Dokumente
Kultur Dokumente
Business
Journal of The American Chamber Of Commerce In Thailand
Volume 4/2015
Digital Economy
14 AMCHAM Recommendations for the Digital Economy
20 Social Commerce: The Market is the Message
22 Thailands Data Protection Bill: Importance and Implications
35 ASEAN Business Outlook Survey Results
special updates
This article will focus on discussing the Inheritance Tax (IHT) rules. These rules are
compared and contrasted with the U.S.
rules to show 1) the basic conceptual differences between U.S. estate taxes and
the Thai rules and 2) specific problematic
points of which U.S. citizens and tax residents need to be mindful, namely the potential for double taxation without relief.
This article is of course meant to be a general discussion of these rules and as always,
advice must be sought from your tax advisor regarding how these rules will impact
your individual situation.
Thai Inheritance Tax
The new IHT rules are meant to serve as a
means of deconcentrating wealth and promoting equality in Thai society. As a means
of taxing wealth upon the death of an individual, the rules are designed in a manner
whereby RECIPIENTS of certain categories
of assets through a bequest are subject to
tax on the receipt of the assets. This is in
sharp contrast to the U.S. estate tax system,
wherein the individual decedents estate is
subject to tax prior to assets being distributed to heirs. Under the Thai rules each recipient is liable for any taxes due and also
responsible for completing relevant tax
filings. As this tax is recipient focused, the
nationality of the decedent is NOT relevant.
What matters under the Thai rules is:
1. the types of assets being received;
2. the categorization of the recipient as either Thai or foreign for IHT purposes;
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In this case the Thai child would be subject to IHT on the value of the property in
excess of Baht 100 million, and
As the Thai is a legitimate child would be
subject to 5 percent tax on the excess
value.
The Thai decedents estate would also
be subject to U.S. estate taxes on the
value of the U.S. condo in excess of USD
60,000.
Again, as the tax payers are not the same
people, double tax will arise on the value
of the condo in excess of Baht 100 million (USD 3 million).
As can be seen from these simple examples, the combination of IHT and U.S.
or other estate tax rules can yield unfortunate outcomes. Additionally, trust and
estate planning geared toward IHT may
also need to be tailored to accommodate
other potential estate taxes. Caution is advised and professional guidance should be
sought in undertaking any tax planning as
always.
Organization support;
Speakers for career workshops;
HR specialists to conduct mock job interviews;
Hosting a visit to your facilities or places of business
Items for goody bags (T-shirts, hats, pens, and other
products)
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