Inheritance tax gets NCPO nod

[ldnguy]

 

This means that every middle class property owner is gonna pay a couple thousand a year. The fleecing of the middle class continues as even 1 bedroom condos in Bangkok are going for at least 1 million baht these days. Those who own 10 million homes or have hundreds rai of land won't worry that much, but your average hard working family will. If the junta introduces this tax scheme overnight, it will be pure thievery.
 
 
 
 

Its a 1000 bt per million a year hardly a probem for the middle class

Sent from my SM-G900F using Thaivisa Connect Thailand mobile app

 

Not now, but this is how all taxes start. First it's so low that it doesn't really matter, so people accept it. But then it goes up and up and up. When tax was first raised in USA it was 1% and people were told that it would never need to be higher. Now it's around 50%. In UK I think VAT was initially 5%, but now it's 20%. It won't be long before it's 25%. I don't think people should be taxed on the home they live in. It will mean people getting forced out of homes they've live in for decades. It already happens in the West. 

 

Take the example of a poor person who happens to live in an area where property is now expensive. The person is poor, but the tax is assessed on the property value. The poor person probably can't afford the tax. The person is then being penalised because their neighborhood become expensive. So it ends up with people being kicked out of homes they have lived in for 50 years. That is so wrong. Taxes should be based on ability to pay them.

Edited August 1, 2014 by ldnguy

[Feesbay John]

 

 

This means that every middle class property owner is gonna pay a couple thousand a year. The fleecing of the middle class continues as even 1 bedroom condos in Bangkok are going for at least 1 million baht these days. Those who own 10 million homes or have hundreds rai of land won't worry that much, but your average hard working family will. If the junta introduces this tax scheme overnight, it will be pure thievery.
 
 
 
 

Its a 1000 bt per million a year hardly a probem for the middle class

Sent from my SM-G900F using Thaivisa Connect Thailand mobile app

 

Not now, but this is how all taxes start. First it's so low that it doesn't really matter, so people accept it. But then it goes up and up and up. When tax was first raised in USA it was 1% and people were told that it would never need to be higher. Now it's around 50%. In UK I think VAT was initially 5%, but now it's 20%. It won't be long before it's 25%. I don't think people should be taxed on the home they live in. It will mean people getting forced out of homes they've live in for decades. It already happens in the West. 

 

Take the example of a poor person who happens to live in an area where property is now expensive. The person is poor, but the tax is assessed on the property value. The poor person probably can't afford the tax. The person is then being penalised because their neighborhood become expensive. So it ends up with people being kicked out of homes they have lived in for 50 years. That is so wrong. Taxes should be based on ability to pay them.

 

 

You got it in one.

[Thai at Heart]

[quote name="Feesbay John" post="8183196" timestamp="1406882364"]

[quote name="Thai at Heart" post="8182987" timestamp="1406879168"]
[quote name="Feesbay John" post="8182894" timestamp="1406878028"]

[quote name="Thai at Heart" post="8182744" timestamp="1406875912"]
[quote name="Feesbay John" post="8182627" timestamp="1406874740"]

[quote name="Thai at Heart" post="8182558" timestamp="1406874170"]
 [quote name="Feesbay John" post="8182520" timestamp="1406873810"]

 [quote name="robblok" post="8182395" timestamp="1406872453"]

 [quote name="Feesbay John" post="8182373" timestamp="1406872163"]

 
 
If this tax is about getting at the rich then the limit should be set at the one's that have loads of land and not every one. All this tax is going to do to them that have land and house's rented out, is to up the rent so the average Thai end's up paying it any way. You no this is going to happen. If they have so much land and this is not rented out then make a law to get them to pay a fine on unused land.
 [/quote]Did you actually read the article ? They have a fine on unused land it goes up in tax 
 
And so your saying don't tax the rich they will get it back from the poor. Sound reasoning. So best we could do is not to tax the rich just the poor. Or even better no tax no government no laws.
 [/quote] 
Not once have I said DO NOT TAX THE RICH, BUT find a way to tax them that will not be passed down to the poor as the property tax will be.... Or is this to hard to do for an accountant to find away. Let's take the easy way and tax everyone to get at the rich which is who we are trying to get at. 
 
Why not look at the asset's of these big company's and tax that. Them that hide what they have fine them. Them that have land in family's name's put the family asset's together and have a tax on a family asset's. If this is the goal to get at the rich have a family tax that will not effect the average Thai.[/quote]
Yes, the 3rd largest single landowner in the country is actually Unilever through its partnership to produce palm oil. All the rubber companies own huge tracts for plantation. This is exactly what this change in the law is going to do.

It will look at companies and individuals who own land. Somchai poor guy might own a few rai of scrub and pay little. Pooyai man has either thousands of rai or several rai down town worth millions . I don't see why you can't equate that if someone is poor low value they have little land and someone who is rich is likely to have large amounts of high value land
 [/quote]
 
I can see a need to tax the rich, BUT once this tax on property is passed it will change over the years and the poor will end up paying for it. The goal posts will be moved as with all taxes.[/quote]

Hardly a reason not tot start it. No law is forever.[/quote]
 
But a good reason not to start it.
 
How has it helped other country's that are paying property tax, has the rich got poorer or has the poor got richer. NO The rich got richer.
 
OK they have better roads or in most country's. BUT how much are these country's in dept.
 
Let's just look at VAT which we were told was only for a few years, to help pay of the dept. Many years after and now at 20% in the UK.
 
We need to start looking at how we can make the tax money that is paid already and how that is spent.
 
Let's find a way to tax the rich BUT not at the average mans expense. [/quote]
The country is at a point of 45% debt to GDP. They need money to fund growth. The govt can borrow it, or taxpayers can pay.

Choices choices[/quote]
 
See how the story has changed, from wanting to tax the rich to the tax payers can pay. The rich people are the people that have got this country into 45% dept. So find a way to tax them more that will not effect the average Thai.
The tax on property will not make the rich any poorer, name me one country that this has happen, 
Introduce a tax on any company, family or person with asset's over 25m baht and make this tax a high % so the country will not need to borrow. Then the rich will pay as you are trying to make this new tax law look.[/quote]

Huuuuuuuuh?

Yeah. The rich have been so busy evading income and business taxes that there hasn't been enough revenue to pay for the schools and roads.

[englishoak]

1 This is only a proposal

 

2 By exempting overseas assets on inheritance its not going to hurt the rich ( who will just move assets offshore )

 

3 The low end threshhold isnt really high enough

 

4 Land owned by the rich will probably only get lumped into business assets and that'll come off profit before tax

 

Devils in the detail and there is currently little detail, such as the inheritance threshold etc. Many other questions such is displacement of people who are in houses in areas where the value has risen hugely, they will be forced to sell and to guess who ? Same for the mid level farmer with nothing much but land and a nice annual bill. 

 

Im sure there is much more detail but somehow im not too confident about the rich feeling it more than those poorer, the rich tend to be able to absorb costs and find a way to offset it, the poor and middle class much less so. What tends to happen when there is no reasonable low end exemption is the poor and middle class get forced out and have to sell and the rich will be the buyers. 

 

Not really much to go one with no details and very unlikely imo this will pass anything in its current form, atm until passed into law it is just another headline, and a nation one at that 

[Feesbay John]

[quote name="Thai at Heart" post="8182987" timestamp="1406879168"]
[quote name="Feesbay John" post="8182894" timestamp="1406878028"]

[quote name="Thai at Heart" post="8182744" timestamp="1406875912"]
[quote name="Feesbay John" post="8182627" timestamp="1406874740"]

[quote name="Thai at Heart" post="8182558" timestamp="1406874170"]
 [quote name="Feesbay John" post="8182520" timestamp="1406873810"]

 [quote name="robblok" post="8182395" timestamp="1406872453"]

 [quote name="Feesbay John" post="8182373" timestamp="1406872163"]

 
 
If this tax is about getting at the rich then the limit should be set at the one's that have loads of land and not every one. All this tax is going to do to them that have land and house's rented out, is to up the rent so the average Thai end's up paying it any way. You no this is going to happen. If they have so much land and this is not rented out then make a law to get them to pay a fine on unused land.
 [/quote]Did you actually read the article ? They have a fine on unused land it goes up in tax 
 
And so your saying don't tax the rich they will get it back from the poor. Sound reasoning. So best we could do is not to tax the rich just the poor. Or even better no tax no government no laws.
 [/quote] 
Not once have I said DO NOT TAX THE RICH, BUT find a way to tax them that will not be passed down to the poor as the property tax will be.... Or is this to hard to do for an accountant to find away. Let's take the easy way and tax everyone to get at the rich which is who we are trying to get at. 
 
Why not look at the asset's of these big company's and tax that. Them that hide what they have fine them. Them that have land in family's name's put the family asset's together and have a tax on a family asset's. If this is the goal to get at the rich have a family tax that will not effect the average Thai.[/quote]
Yes, the 3rd largest single landowner in the country is actually Unilever through its partnership to produce palm oil. All the rubber companies own huge tracts for plantation. This is exactly what this change in the law is going to do.

It will look at companies and individuals who own land. Somchai poor guy might own a few rai of scrub and pay little. Pooyai man has either thousands of rai or several rai down town worth millions . I don't see why you can't equate that if someone is poor low value they have little land and someone who is rich is likely to have large amounts of high value land
 [/quote]
 
I can see a need to tax the rich, BUT once this tax on property is passed it will change over the years and the poor will end up paying for it. The goal posts will be moved as with all taxes.[/quote]

Hardly a reason not tot start it. No law is forever.[/quote]
 
But a good reason not to start it.
 
How has it helped other country's that are paying property tax, has the rich got poorer or has the poor got richer. NO The rich got richer.
 
OK they have better roads or in most country's. BUT how much are these country's in dept.
 
Let's just look at VAT which we were told was only for a few years, to help pay of the dept. Many years after and now at 20% in the UK.
 
We need to start looking at how we can make the tax money that is paid already and how that is spent.
 
Let's find a way to tax the rich BUT not at the average mans expense. [/quote]
The country is at a point of 45% debt to GDP. They need money to fund growth. The govt can borrow it, or taxpayers can pay.

Choices choices[/quote]
 
See how the story has changed, from wanting to tax the rich to the tax payers can pay. The rich people are the people that have got this country into 45% dept. So find a way to tax them more that will not effect the average Thai.
The tax on property will not make the rich any poorer, name me one country that this has happen, 
Introduce a tax on any company, family or person with asset's over 25m baht and make this tax a high % so the country will not need to borrow. Then the rich will pay as you are trying to make this new tax law look.

Huuuuuuuuh?

Yeah. The rich have been so busy evading income and business taxes that there hasn't been enough revenue to pay for the schools and roads.

 

But make it so the rich do pay and not the average Thai.

 

You still not name one country that has made the rich pay with the property tax. 

[Feesbay John]

 

 

 

[quote name="Feesbay John" post="8182894" timestamp="1406878028"]

[quote name="Thai at Heart" post="8182744" timestamp="1406875912"]
[quote name="Feesbay John" post="8182627" timestamp="1406874740"]

[quote name="Thai at Heart" post="8182558" timestamp="1406874170"]
 [quote name="Feesbay John" post="8182520" timestamp="1406873810"]

 [quote name="robblok" post="8182395" timestamp="1406872453"]

 [quote name="Feesbay John" post="8182373" timestamp="1406872163"]

 
 
If this tax is about getting at the rich then the limit should be set at the one's that have loads of land and not every one. All this tax is going to do to them that have land and house's rented out, is to up the rent so the average Thai end's up paying it any way. You no this is going to happen. If they have so much land and this is not rented out then make a law to get them to pay a fine on unused land.
 [/quote]Did you actually read the article ? They have a fine on unused land it goes up in tax 
 
And so your saying don't tax the rich they will get it back from the poor. Sound reasoning. So best we could do is not to tax the rich just the poor. Or even better no tax no government no laws.
 [/quote] 
Not once have I said DO NOT TAX THE RICH, BUT find a way to tax them that will not be passed down to the poor as the property tax will be.... Or is this to hard to do for an accountant to find away. Let's take the easy way and tax everyone to get at the rich which is who we are trying to get at. 
 
Why not look at the asset's of these big company's and tax that. Them that hide what they have fine them. Them that have land in family's name's put the family asset's together and have a tax on a family asset's. If this is the goal to get at the rich have a family tax that will not effect the average Thai.[/quote]
Yes, the 3rd largest single landowner in the country is actually Unilever through its partnership to produce palm oil. All the rubber companies own huge tracts for plantation. This is exactly what this change in the law is going to do.

It will look at companies and individuals who own land. Somchai poor guy might own a few rai of scrub and pay little. Pooyai man has either thousands of rai or several rai down town worth millions . I don't see why you can't equate that if someone is poor low value they have little land and someone who is rich is likely to have large amounts of high value land
 [/quote]
 
I can see a need to tax the rich, BUT once this tax on property is passed it will change over the years and the poor will end up paying for it. The goal posts will be moved as with all taxes.[/quote]

Hardly a reason not tot start it. No law is forever.[/quote]
 
But a good reason not to start it.
 
How has it helped other country's that are paying property tax, has the rich got poorer or has the poor got richer. NO The rich got richer.
 
OK they have better roads or in most country's. BUT how much are these country's in dept.
 
Let's just look at VAT which we were told was only for a few years, to help pay of the dept. Many years after and now at 20% in the UK.
 
We need to start looking at how we can make the tax money that is paid already and how that is spent.
 
Let's find a way to tax the rich BUT not at the average mans expense. [/quote]
The country is at a point of 45% debt to GDP. They need money to fund growth. The govt can borrow it, or taxpayers can pay.

Choices choices

 
See how the story has changed, from wanting to tax the rich to the tax payers can pay. The rich people are the people that have got this country into 45% dept. So find a way to tax them more that will not effect the average Thai.
The tax on property will not make the rich any poorer, name me one country that this has happen, 
Introduce a tax on any company, family or person with asset's over 25m baht and make this tax a high % so the country will not need to borrow. Then the rich will pay as you are trying to make this new tax law look.

Huuuuuuuuh?

Yeah. The rich have been so busy evading income and business taxes that there hasn't been enough revenue to pay for the schools and roads.

 

But make it so the rich do pay and not the average Thai.

 

You still not name one country that has made the rich pay with the property tax. 

 

 

I also noticed how you did not answer this,,

 

How the tax could be done.

 

New taxation for the rich. That will only affect the rich.

Any company, Organization, family or person with assets over 25m baht.

All company assets including

Money in the bank,

Land, home or business at today’s value,

Motors,  

Stocks and shares.

Including any asset’s that are generating a profit.

How and what they need to pay.

 If a person’s assets are 50m baht he or she will pay tax on the amount over 25m baht.

This will be set at 10%,

If there assets are over 51m baht but fewer than 99m baht.

The first 25m baht will be taxed at 10% and the rest will be taxed at 12%

If there assets are over 100m baht.

The 25m baht to 50m baht will be taxed at 10% and the 50m baht will be taxed at 12%, the rest will be taxed at 15%

Once this tax has been paid it cannot be paid again on money that has already been taxed. BUT if the person’s assets grow, then the tax will be payable on the growth each year.

Company tax or an organization will be taxed in the same way. BUT any assets that have already paid in tax though the personal tax on its assets cannot be taxed twice.

Family tax, will be a family assets that amount to the figures above BUT again if a company or person has already paid the tax, it cannot be taxed again.  

As tax has already been paid by the above no inheritance tax will be added.

OK this needs a lot of work to make it happen BUT it could be achieved.

This would rise money needed to pay of the 45% debt to GDP 

[MJCM]

Crap, I don't understand what was said.  Can someone help.
 
If I currently own land, do I have to pay these "inheritance tax"?  or do these "inheritance taxes" apply only after it was given to me?
 
I'm confused because they added soda drinks into "inheritance taxes"... i'm an idiot with taxes, but what.... if I inherited a case of soda would the government actually care about it?...
 
So confused... can someone help make sense to the laymen.

 
Inheritance tax is paid on inheritance - i.e. your kids would have to pay it on your death (so sign it over to them now with a usufruct for yourself) and avoid paying it.
 
Land taxes is the bit you would have to pay - and determined on what sort of land it is and if it is fallow or not.
 
The rest is all about sugars in food - and would be universal, like VAT - and not noticeable as more than some things going up in price and others not (i.e. inflation will shoot up again).

And what about if you own a condo. What is the rate for that? Is it also the 0.1% a year?


Sent from my iPad so Please excuse any typos Edited August 1, 2014 by MJCM

[losworld]

An inheritance tax is needed the world over.  The rich have become so much richer it is time they pay a fairer share and everyone knows this.  This is a huge step in the right direction.

Edited August 1, 2014 by losworld

[submaniac]

Up until now, I mostly agreed with the changes that were trying to be implemented. But this?   In the United States there is a strong movement to end inheritance tax.  The reason?  Because the property was ALREADY taxed and already paid.  You're forcing people to pay again for something they already paid for.  Singapore already got rid of the inheritance tax.

 

What this will do is create alot of mayhem for most Thais.  Everyone who owns land will have to pay a tax where they did not have to pay before.  So pretty much the majority of Thai people will be affected negatively.   The especially hard hit will be the wealthy families of Thailand who inherited their property.  We all know that wealthy Thais don't put up with things well. 

 

What needs to be taken into consideration is the support base among the populace, and someone is not taking that into account.  The Thai poor were the supporters of the previous regime (who I am also not a fan of), so they're not happy with the current situation.  Alot of Thai poor, like the motorcycle taxi guys, and the beach chair people, are already upset with the changes happening which threaten their source of income.   And now the wealthy Thais--those with the land--are going to be alienated with the inheritance and property taxes.   And what of the middle class who are also now subject to paying more in taxes.

 

So if the poor, the middle class, and the wealthy are all being alienated, where's the popular support going to come from?

 

The only people who seem to support this idea are the farangs on Thaivisa who don't own land.

Edited August 1, 2014 by submaniac

[Rooo]

Post discussing moderation removed.

[robblok]

Up until now, I mostly agreed with the changes that were trying to be implemented. But this?   In the United States there is a strong movement to end inheritance tax.  The reason?  Because the property was ALREADY taxed and already paid.  You're forcing people to pay again for something they already paid for.  Singapore already got rid of the inheritance tax.

 

What this will do is create alot of mayhem for most Thais.  Everyone who owns land will have to pay a tax where they did not have to pay before.  So pretty much the majority of Thai people will be affected negatively.   The especially hard hit will be the wealthy families of Thailand who inherited their property.  We all know that wealthy Thais don't put up with things well. 

 

What needs to be taken into consideration is the support base among the populace, and someone is not taking that into account.  The Thai poor were the supporters of the previous regime (who I am also not a fan of), so they're not happy with the current situation.  Alot of Thai poor, like the motorcycle taxi guys, and the beach chair people, are already upset with the changes happening which threaten their source of income.   And now the wealthy Thais--those with the land--are going to be alienated with the inheritance and property taxes.   And what of the middle class who are also now subject to paying more in taxes.

 

So if the poor, the middle class, and the wealthy are all being alienated, where's the popular support going to come from?

 

The only people who seem to support this idea are the farangs on Thaivisa who don't own land.

Let farangs own land that would be the solution to get the support base totally gone. 

 

In principle I am pro asset tax but against an inheritance tax. The house tax as proposed has one drawback it does not take into account the wealth of the owner because debt on the property are not taken into account. An asset tax would be better but I fear that the rich would hide their assets as Thailand is not known for its transparency.

 

Hell do away with the stupid 4 Thais to every foreigner and no majority shares for foreigners and you will have a lot of foreign companies popping up that are willing to pay tax. (yea like they ever going to make it easier for foreigners  )

Edited August 2, 2014 by robblok

[PattayaPhom]

This is great news. Hopefully it will force land speculators who buy land and then just sit on it for generations to actually do something with it or sell it, rather than waiting 30 years for some fool to come and offer 3x market value.

 

This vacant land tax rate should probably be calculated at 5% inside designated metropolitan boundaries. Hopefully this would create a fluid and realistic property market that reflects true value for the landowner rather than a few rich families owning all the good positions.

it will work in reverse, as there is tax to pay....up the price even more.

[Time Traveller]

Up until now, I mostly agreed with the changes that were trying to be implemented. But this?   In the United States there is a strong movement to end inheritance tax.  The reason?  Because the property was ALREADY taxed and already paid.  You're forcing people to pay again for something they already paid for.  Singapore already got rid of the inheritance tax.

 

What this will do is create alot of mayhem for most Thais.  Everyone who owns land will have to pay a tax where they did not have to pay before.  So pretty much the majority of Thai people will be affected negatively.   The especially hard hit will be the wealthy families of Thailand who inherited their property.  We all know that wealthy Thais don't put up with things well. 

 

What needs to be taken into consideration is the support base among the populace, and someone is not taking that into account.  The Thai poor were the supporters of the previous regime (who I am also not a fan of), so they're not happy with the current situation.  Alot of Thai poor, like the motorcycle taxi guys, and the beach chair people, are already upset with the changes happening which threaten their source of income.   And now the wealthy Thais--those with the land--are going to be alienated with the inheritance and property taxes.   And what of the middle class who are also now subject to paying more in taxes.

 

So if the poor, the middle class, and the wealthy are all being alienated, where's the popular support going to come from?

 

The only people who seem to support this idea are the farangs on Thaivisa who don't own land.

Well it's the NCPO who support this as well. And it's only the NCPO's opinion that matters here. You could complain to them I guess. There has been many complaints about all the changes they've been making in haste for whatever reason. I remember last coup they totally made a mess of capital markets, probably expect a repeat of that.

 

But I don't think the wealthy will be "hard hit", Anyone with enough dollars can avoid inheritance taxes. Ultimately this will only affect the middle class and apparently they are happy with the NCPO taking over the country. 

Edited August 2, 2014 by Time Traveller

[AGareth2]

trusts?

[MJCM]

I don't know if this is already been posted, but here they are talking about the same thing, but in 2006.

 

http://www.thailandlawonline.com/article-older-archive/no-new-inheritance-tax-in-thailand