Thai Govt. Officials Can’t Agree on Inheritance Tax Rate in New Bill

Thailand’s government officials can’t seem to agree on the fate of Thailand’s draft inheritance tax bill, which was sent back to the Finance Ministry for readjustment in February, according to the Bangkok Post.

The officials are getting hung up on whether the tax rate should be 10 percent or 8 percent and whether the ceiling for the tax exemption should be estates valued over 50 million baht or over 80 million baht. Both the Finance Ministry and the Thai Cabinet had passed the bill with the former rates, respectively.

The National Legislative Assembly didn’t approve the bill, though, sending it back to the Finance Ministry Feb. 9.

The Thailand probate attorneys at Thai law firm Chaninat and Leeds have assisted heirs from all over the world with probate proceedings in Thailand.

According to the Bangkok Post, Finance Minister Sommai Phasee said he thinks the bill should be thrown out if the tax rate, which already “almost amounts to nothing for state coffers,” is reduced.

It remains to be seen if the changes proposed by the NLA will be agreed upon by all government parties or if the bill will be killed by bureaucracy.

Read the full story here.

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Draft Bill Imposing Thailand’s First Inheritance Tax Approved, Expected to Become Law

The draft Thai inheritance tax bill was endorsed by Thailand’s Cabinet on Tuesday, November 18, reports The Nation.

The tax rate in the draft bill is 10 percent and will only be collected on estates worth more than 50 million baht.

The Thai inheritance attorneys at Chaninat and Leeds have assisted Thai nationals and foreigners with matters concerning Thai inheritance laws since 1997.

Prime Minister Prayut Chan-o-cha said the tax will be “a form of income distribution," according to The Nation.

The draft bill will now be deliberated by the National Legislative Assembly and is reportedly projected to be passed into law, imposing Thailand’s first inheritance tax by June 2015.

Read the full story here.

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Thailand Reviews Draft Inheritance Tax Bill, Officials Say Estates Exempt from Taxes

Thailand Reviews Draft Inheritance Tax Bill, Officials Say Estates Exempt from Taxes

People who are willed a property from a deceased spouse won’t have to worry about paying inheritance tax in provisions to be included in Thailand’s proposed inheritance tax bill, according to the Bangkok Post.

Thailand’s deputy prime minister, Pridiyathorn Devakula, reportedly announced in early October that estates worth less than 50 million baht would be exempt to “ease the burden on the grieving party.”

There had never been an inheritance tax in Thailand, but the National Council for Peace and Order has launched a national tax reform initiative and opted to propose a draft of an inheritance tax bill for lawmakers to review.

The Bangkok Post reports that Finance Minister Sommai Phasee said the highly contested inheritance tax bill may not be enforced this year as officials take more time to take all opinions into consideration to weight its advantages and disadvantages before finalizing the legislation.

Deputy Prime Minister Pridiyathorn said “the waiving provisions will be announced before the draft inheritance tax bill is put before the parliament,” according to the Bangkok Post.

Read the full story:
Bangkok Post – Inheritance tax will not cover spouse
Bangkok Post – Govt vows inheritance tax ‘fairness’

Australia: New Tax Laws Could Shrink Divorce Payouts

A new ruling from Australia’s Tax Office means wealthy couples won’t be able to dodge high tax rates by funding divorce settlements from corporate pockets, reports the Sydney Morning Herald.

Previously, private company assets were taxed at the 30 per cent company tax rate.

The new ruling, made July 30, now applies personal income tax rates, the highest rate being 46.5 per cent, to divorce payouts from private companies.

Bangkok divorce attorneys at Thai law firm, Chaninat and Leeds, have decades of experience in Thailand and international divorce cases.

According to the Sydney Morning Herald, this change could significantly shrink divorce settlement payouts, making divorce more expensive for many wealthy couples

Read the full story here.  

Americans Abandon Citizenship, Are Taxes to Blame?

More Americans renounced their citizenship in 2013 than ever before, according to Forbes.

In 2013, a total of 2,999 American left their U.S. nationality, resulting in a 221% increase over 2012, when the total was 932. The data comes from the U.S. Treasury Department’s mandatory quarterly list, publically naming those who’ve renounced their U.S. citizenship or long-term residency. 

Forbes reports that taxes may be at the heart of the issue for many Americans living abroad. Under the Foreign Account Tax Compliance Act, Americans living and working in foreign countries still have to file their earnings with the U.S., often resulting in double taxes.

For more information, see:  U.S. Taxes and Tax Law: An Expat’s Bane?

Read the full story here.

 

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• Thailand Signs Agreement to Assist US in Tax Collection

• The Income Tax Treaty Between the United States and Thailand: An Overview and Analysis

• US Expats on Alert: New US Tax Law Extends IRS’s Reach International 

• FATCA Information for Individuals

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