Estate tax regulations under review as ministry strives to increase revenue
The Finance Ministry is studying how to make estate tax regulations “more appropriate” to try to increase revenue, the ministry’s top official said on Thursday.
Permanent secretary Lawan Sangsanit said the ministry was reviewing estate tax regulations because the ministry had not been able to collected much in terms of tax following its enforcement in 2015.
Lawan said the Finance Ministry did not want to be too strict during the first phase of collecting estate tax.
The ministry might now consider reducing exemptions or lowering amounts eligible for exemption, and make the enforcement more stringent, she said.
She added that the ministry might consider lowering the value of estate that is exempted from tax from the current 100 million baht, for example.
“We may consider an appropriate amount of exemption,” Lawan said.
A well-informed source said existing loopholes prevented the ministry from being able to collect much in terms of estate tax.
So far, the ministry has collected 3.643 billion baht since the estate tax regulations were enforced in 2025, the source added.
The source said the ministry had collected only a few hundreds of millions of baht in estate tax each year. Collection last year was just over 1 billion baht.
Currently, inheritors of an estate are required to pay 10% tax on the value of estate they inherit from the deceased.
But the tax will be collected on the value of estate that is higher than 100 million baht per inheritor.
The source said this provides a loophole for wealthy families.
She explained with an example: If an estate is valued at 300 million baht, two children of the deceased would get 100 million each and 100 million baht worth of the estate would be given to another relative to avoid the tax.
As per current regulations, sons or daughters of the deceased would be charged 5% tax on the value of the estate that exceeds the first 100 million baht, while more distant relatives, who are inheritors, will have to pay 10% tax for inheritance exceeding 100 million baht.
The tax is collected on inherited property, shares, bonds, deposits, vehicles, and other financial assets. Cash, gold, jewellery, antiques and intellectual property are exempted
The source said some people had tried to evade estate tax by converting their assets into cash, jewellery, gold and antiques.
Tax exemptions are also given to those who give their estate up to be used for religious purposes, educational affairs and public services.
