Inheritance-tax draft to be presented to Thai Cabinet soon

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IMPOSITION
Inheritance-tax draft to be presented to Cabinet soon
The Nation


Sommai Phasee

BANGKOK: -- The draft inheritance-tax bill will be proposed to the Cabinet meeting next Tuesday with an expected fixed rate of no more than 10 per cent to be imposed on heirs of estates worth more than Bt50 million.

Finance Minister Sommai Phasee said yesterday that if the heirs did not have enough cash to pay the tax, they would be allowed to make instalments at no extra cost for two to three years.

After the Cabinet approves the draft bill, it will be tabled with the National Legislative Assembly, which is expected to take three months to consider it.

If a beneficiary receives assets from a donor who has not died yet within two years of the inheritance tax taking effect, those inherited assets will also be taxed to prevent tax avoidance.

Another new tax, this one on real estate, which would replace the house and land tax and local development tax, is expected to come into force in two years. It will likely be collected by the Revenue Department, instead of local units.

"The new draft bill on land and building taxes is expected to levy rates similar to those on cars. About 32 million plots of land have to be appraised, and this is expected to take two years to complete," Sommai said.

Realty

Real estate for residential or agricultural purposes could be taxed at no more than 0.5 per cent of appraised value, commercial land at no more than 1 per cent and idle land at no more than 2 per cent.

A previous tax bill proposed a tax schedule of no more than 0.1 per cent for residential purposes, no more than 0.05 per cent tax for agricultural purposes and no more than 0.5 per cent tax for businesses.

The new draft bill would lessen the tax-collection gap. For example, the higher the land value, the lower the local development tax, he added.

Source: http://www.nationmultimedia.com/business/Inheritance-tax-draft-to-be-presented-to-Cabinet-s-30246981.html


-- The Nation 2014-11-05

[CNXTim]

That should lower the property values or increase subdivision applications somewhat - but i guess it is WHOM you inherited the property from - khao jai?

[chainarong]

An prehistoric tax that neither helps any party ,alternative name is death tax, like other idea's being introduced under this latest train wreak that calls itself a Government, out of step with the world as usual.

[Tatsujin]

Lucky the good general (and his father) sold a big chunk of his families land recently . . .

[rickirs]

However effective the new property and inheritance taxes might be in collecting revenues, they will be too late and too little for 2015 to help offset government debt and a worsening economy. An immediate increase in general income tax brackets effective January 1, 2015 might provide a better choice if only to provide early collection of quarterly estimated tax collections from businesses. But tax reform is only a side show for Thailand's current economy.

The current government has committed to a 5% GDP growth rate for 2015 after an almost flat growth rate for 2014. If it falls below 2.5%, that may cast severe doubt on the creditability of Gen. Prayuth's economic policies and suggest a change in the "direction" of NCPO leadership. Thailand's international trade balance (net export value exceeding import value) MUST be at least 4% in conjunction with a significant increase in domestic spending for 2015. If the current government falters in 2015 to revive the Thai economy, it couldn't come at a worst time with the ASEAN Community becoming active. Thailand may become the hub of economic failure and no democratic institutions to be blamed.

[hawker9000]

Whatever the near-term implications for the budget or the economy, this doesn't sound like something the hi-so are going to much cotton to...

[maidee]

nice of mister coup maker, to first transfer his 460 million baht to his family to avoid paying so much tax, right ?

live by good example