I may have an inheritance due in my home country later this year.

 

It will not be subject to inheritance tax in my home country as it will fall beneath the tax limit.

 

If I transfer the money to Thailand will it be classed as income and be liable to tax under the amendment to the tax laws?

 

Thanks in advance

8 minutes ago, narkeddiver said:

I may have an inheritance due in my home country later this year.

 

It will not be subject to inheritance tax in my home country as it will fall beneath the tax limit.

 

If I transfer the money to Thailand will it be classed as income and be liable to tax under the amendment to the tax laws?

 

Thanks in advance

Please read the following link, including the section on Inheritance.

 

https://aseannow.com/topic/1319807-personal-income-tax-guide-for-foreigners-thailand/

Duplicate Post

Edited April 1, 20242 yr by narkeddiver
Duplicate Post

Thanks Mike - I had read this post before but not far enough down to reach the inheritance section 

 

Any idea how I provide proof that the transfer is inheritance rather than general income?

'k) - how to distinguish between principal (funds from legacy investments, inheritance, original investment principal) versus earnings (interest, dividends, remuneration) from comingled funds, determination of applicable foreign currency exchange rates for tax assessment, etc'

 

 

So whats the answer then or is it wait and see? which will probably be offices deciding for themselves

1 minute ago, narkeddiver said:

Thanks Mike - I had read this post before but not far enough down to reach the inheritance section 

 

Any idea how I provide proof that the transfer is inheritance rather than general income?

I would guess that a copy of the probate order or the disbursement from the Executer should be adequate, both should be easily obtainable.

3 minutes ago, proton said:

'k) - how to distinguish between principal (funds from legacy investments, inheritance, original investment principal) versus earnings (interest, dividends, remuneration) from comingled funds, determination of applicable foreign currency exchange rates for tax assessment, etc'

 

 

So whats the answer then or is it wait and see? which will probably be offices deciding for themselves

Where principle and interest/income can be easily divided, a statement dated 31 December should be adequate. Any more than that and we await guidance from the RD. Much of this comes down to the quality of the taxpayers record keeping and their ability to easily distinguish between comingled funds.

Edited April 1, 20242 yr by Mike Lister

21 minutes ago, Mike Lister said:

I would guess that a copy of the probate order or the disbursement from the Executer should be adequate, both should be easily obtainable.

Adequate maybe, but it will need to be translated, and likely certified by ones Bangkok based Embassy, at exhorbitant cost, plus the inconvenience for many of travelling hundreds of kilometres to get it certified!!!!!!!!

9 minutes ago, prakhonchai nick said:

Adequate maybe, but it will need to be translated, and likely certified by ones Bangkok based Embassy, at exhorbitant cost, plus the inconvenience for many of travelling hundreds of kilometres to get it certified!!!!!!!!

It would be no different back home if  the inheritance was from a non English language speaking country

1 hour ago, Mike Lister said:

I would guess that a copy of the probate order or the disbursement from the Executer should be adequate, both should be easily obtainable.

So, in theory, once I get the probate order and / or disbursement translated then I could use these documents continually and use my inheritance as my annual income in Thailand (until it runs out) and if that is my sole source of funds then I would be exempt from tax as that would be all that would be on my Thai tax declaration 

1 hour ago, proton said:

'k) - how to distinguish between principal (funds from legacy investments, inheritance, original investment principal) versus earnings (interest, dividends, remuneration) from comingled funds, determination of applicable foreign currency exchange rates for tax assessment, etc'

 

1) Legacy Investment - Bank statements with dates of record

2) Inheritance - Probate, copy of will, legal docs, bank statement indicating the deposit and bank statement recording the event.

3)Remuneration - Bank statement will show payments and receipts.

4) Interest - Interest certificates issue by banks (some cases have to request)

5) Dividends - Dividend payment receipts issued by banks/investments

6) Remuneration - Bank statement

7) Foreign currency exchange - The incoming funds into a Thai bank account will prove the exchange rate.

 

5 hours ago, freeworld said:

1) Legacy Investment - Bank statements with dates of record

2) Inheritance - Probate, copy of will, legal docs, bank statement indicating the deposit and bank statement recording the event.

3)Remuneration - Bank statement will show payments and receipts.

4) Interest - Interest certificates issue by banks (some cases have to request)

5) Dividends - Dividend payment receipts issued by banks/investments

6) Remuneration - Bank statement

7) Foreign currency exchange - The incoming funds into a Thai bank account will prove the exchange rate.

 

Exactly. Not easy for those who are not accustomed to keeping sound financial records but not impossible.

23 hours ago, Mike Lister said:

I would guess that a copy of the probate order ... should be adequate,

 

The Grant of Probate only shows the total value of the estate - not who inherits, or how much.

11 minutes ago, Foxx said:

 

The Grant of Probate only shows the total value of the estate - not who inherits, or how much.

 

Let's not get carried away, you don't need any documentation to submit your tax return, only if they query it.  How likely are they to query a foreigner's tax return?

6 minutes ago, JBChiangRai said:

 

Let's not get carried away, you don't need any documentation to submit your tax return, only if they query it.  How likely are they to query a foreigner's tax return?

I doubt they will, they will probably ask for the standard pro forma tax clearance certificate issued by the revenue authority of the other country.

Edited April 2, 20242 yr by freeworld

1 hour ago, freeworld said:

I doubt they will, they will probably ask for the standard pro forma tax clearance certificate issued by the revenue authority of the other country.

 

Not standard in my country. 

There’s another issue, British tax year’s end in April

55 minutes ago, JBChiangRai said:

There’s another issue, British tax year’s end in April

That's not really an issue. Returns here must be filled by 31 Mar, the UK year ends 5 days later, you will know all you need to know by late March.