Compromise and Penalty on Inheritance Tax

Extension of Tax Payment

Section 8 of the Inheritance Tax Act B.E. 2558 (2015) may allow a taxpayer to submit a request to extend the tax payment period with the Revenue Department under one of these circumstances:

1. Inability to pay tax within the period of 150 days, from the date of receiving inheritance.
2. A taxpayer does not reside in Thailand at the moment.

After the Director General approves the request, it shall be deemed as valid. The taxpayer must then pay the tax within the extended deadline.

Inability to Pay Tax in the Entire Amount

In case a taxpayer cannot pay inheritance tax in the entire amount to the Revenue Department, the department may allow a tax payment in installments for up to five years, as defined by Section 23 of the Act.

However, a taxpayer who pays tax in installments for more than 2 years is subject to pay interests of the taxed value.

Request of Inheritance Tax Refund

Section 24 of the Act may permit a person who is not obligated to pay inheritance tax or has paid more than the law stipulated in requesting for the tax refund. Such an individual has 5 years to request for a refund with the Revenue Department from the date of paying the entire amount of tax.

Here is the timeline of the inheritance tax refund after the Revenue Department receives the request:

1. The Department has 150 days to review it from the date of receiving such a request.
2. Submit a confirmation letter with the requestor within 15 days from the date of completing the review. 
3. The Department has 30 days to refund the inheritance tax with that individual from the date of the review completes.

Here are the following documents required for inheritance tax refund:

1. Receipt of inheritance tax issued by the Revenue Department.
2. Proof of the exceeded inheritance tax payment.
3. Other relevant documents related to this subject matter.

Penalty for Omitting Tax Payments

The Act has stated penalties for those who fails to do the following actions in regards to inheritance tax:

1. A person who omits to pay tax without reasonable grounds, is subject to a fine of not more than 500,000 THB and an amount equal to the taxed value, in accordance with Section 29 paragraph 1 and Section 33.
2. A person who does not truthfully declare inheritance tax is subject to a penalty of one-half of the taxed value under Section 29 paragraph 2.
3. A person who fails to comply with the order of the Revenue Department, is subject to a one-month imprisonment, a fine not exceeding 200,000 THB, or both under Section 34.
4. A person who destroys, hides, or transfers inherited assets to others that are seized by the officials, is subject to a two-year imprisonment and a fine of 400,000 THB as stipulated by Section 35.
5. A person who has falsified evidence or statements given to the officials, is subject to a one-year imprisonment, a fine of 200,000 THB, or both in accordance with Section 36.

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Category: Property, Thailand Revenue Code