As you know, the “inheritance” that children, grandchildren, relatives, siblings receive must be subject to inheritance tax. But everything doesn’t end here. Did you know that you have to pay tax up to 2 bounces, that is, before receiving 1 round of inheritance tax and when receiving inheritance, you will have to pay 1 more round of tax?
Therefore, most people may not agree with this form of taxation. because it is seen as a double taxation and those who receive a share of the inheritance must pay inheritance tax. which is the inheritance that they do not receive as well
However, property owners and heirs can plan for tax savings. By having to get to know the principles of tax collection that are related to 3 forms:
1. Inheritance Tax
2. Inheritance tax
3. Receipt tax
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to be used as a guideline for planning the inheritance tax that will be received in the future how to legally pay less tax In particular, heirs whose inheritance value is higher than 100 million baht must follow and read the following lines.
- inheritance tax
inheritance tax (Inheritance tax) is a tax collected on the value of inheritance that each heir receives from the inheritance. orThe owner of the inheritance has passed away. which is different from receiving tax that the owner of the property must be alive
By collecting from the value of inherited assets according to the types prescribed by law, namely “movable property” and “real estate” divided into 5 types as follows:
1. Real estate including land, buildings both located in Thailand and abroad
2.SecuritiesAccording to the Securities and Exchange Act, these are stocks, debentures, unit trusts, debt instruments and various derivatives. whether issued by a juristic person registered in Thailand or abroad
3. Deposit or any other money of the same nature both in Thailand and abroad
4. Vehicles with registration evidence such as cars, boats, motorcycles both registered in Thailand and abroad
5. Financial assetsset for future legal increases
For the heirs who are “parent” or “descendant” Will be taxed 5% of the inherited value.
In other cases, such as “heiress” Will be taxed 10% of the value of inheritance received.
butexceptgive for spouse or in the case of giving for the benefit of religious affairs, educational affairs, public benefit affairs, government agencies or international organizations dealing with these matters. do not pay tax
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- inheritance tax
inheritance tax (Estate tax) is the collection of all assets of the deceased. which will collect all the assets belonging to the deceased’s inheritance to be calculated and taxed before Method of calculating tax like personal income tax byAll eligible persons will be taxed at the same rate. Regardless of the amount of assets received whether the share of inheritance is more or less After that, when there are assets left from tax payment. Therefore, it will be divided among the heirs of the deceased to continue paying inheritance tax if the conditions are met.
This form of taxation The IRS has been collecting for a long time. This is another solution that allows the government to collect more taxes than the collection of inheritance tax. And the collection of inheritance tax will be assessed only once, making it convenient for the authorities. and save tax collection costs
but vice versa How to collect inheritance tax Often does not satisfy the heirs much. Because all heirs must pay the same tax regardless of the proportion of inheritance each person receives. As a result, the heir has to pay a large amount of tax.
- receipt tax
receipt tax (Gift Tax) is a tax that is collected in the event ofThe owner of the property transfers money or property to another person. while still alive It is a tax that is levied along with the collection of inheritance tax. to prevent inheritance tax evasion This is usually charged from the deceased’s property to others 5-7 years before death.
Those who have to pay tax on receipts are as follows:
– A natural person who receives income from support or affection from an ascendant, descendant or spouse.
– A natural person who receives income from sponsorships under ethical duties or from giving by affection due to ceremonies or on the occasion of tradition from other persons who are not ascendants, descendants or spouses
– Parents who legally transfer ownership or possession rights in immovable property to their children. which does not include adopted children
where “giver” and “recipient” will be taxed in the formpersonal income tax Only the value of the assets received in excess of 10 million baht (not as parents, descendants or spouses) and 20 million baht (as parents, descendants or spouses) according to the conditions prescribed by law. Which is collected at a fixed rate of 5% or can be included in the calculation of taxes as other income. (Type 8 income as well). The law gives the right to choose one of the methods of filing a tax return.
- Inheritance Tax Planning Guidelines
It can be seen that the taxes associated with these 3 forms of inheritance, if planned well, will result in less taxation. An example of an inheritance tax planning approach can be given as follows:
1. Gradually transfer assets no more than 20 million per year as a gift of affection meet the conditions of the tax receipt But it is a gradual transfer to children while they are still alive, not exceeding 20 million baht per year to avoid receiving tax. inheritance tax and inheritance tax Gradually transfer like this. until the remaining assets are less than 100 million baht
2. Divide the inheritance property upon death to each heir, not exceeding 100 million baht to avoid paying inheritance tax. but will still be subject to inheritance tax
3. Divide the property to the heirs while they are alive. For those who have a lot of assets In this case, if you choose to divide all your assets while you are still alive but the value of the property exceeds 20 million baht, the excess will be subject to 5% receiving tax or choose to be included in the tax calculation as other income In this way, inheritance tax and inheritance tax will not be paid.
So who has a lot of assets You may need to start planning for managing these assets early. that it should be given first as an affectionate gift or waiting to be divided into inheritance Which one will pay less tax? All of which depend on the value of each person’s property. Therefore, you must try to calculate it in order to plan which one is best for you.
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Source : Inflow Accounting
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