Inheritance Tax Collections

Abstract

This article aims to study the value of tax-exempt inheritance assets and taxable inherited assets.  In the past, the heir was exempt from inheritance tax by the Revenue Code. As time passed, as the State wanted to levy tax on the heir, it, therefore, enacted the Inheritance Tax Act B.E. 2558 on 5th August 2015 which was effective on 1st February 2016. Section 12 of this Act prescribes that an heir is exempt from inheritance tax on the number of liabilities attached to the inheritance assets plus the amount of one hundred million baht. Such exemption amount is too high and results in the State lessening its tax collection amount or even gaining zero tax collection.  Additionally, under Section 14 of this Act, the taxable inheritance assets are exclusively for the assets having registration evidence or having evidence obtained from financial institutions but excluding other types of valuable inheritance assets. The exclusion of other types of valuable assets could lead to tax evasion. For these reasons, the author suggests that such exemption amount be lowered from one hundred million baht to fifty million baht; and that taxable inheritance assets include assets with the market value measured in monetary terms so that all types of inheritance assets shall be aggregated and taxable to enable the State to collect more inheritance tax from the heir.