Understanding the Inheritance Tax

Abstract

Heritage, it is related to people in society if mention to heritage it does not mean just assets or money but including knowledge and learning inherited from the ancestors generation. Now we give more importance to the economy than society therefore heritage mean economic asset. Who have asset for heritage must do tax planning. Article author have studied law related to inheritance tax to understand the context of the government and taxpayers.

Heritage Tax Act effective date on February 1, 2016. The main objective was reduction of social disparity but after the announcement about 1 year ago the Revenue Department can not tax collection even though the government modified Gift Tax Act in section original. In section owner gave movable assets to everyone by duty or ceremony or traditional had tax exemption.

Difference of Heritage Tax Act and Gift Tax Act such as 1) tax collection : Heritage Tax Act when owner dead but Gift Tax when owner is still alive 2) tax payer : Heritage Tax Act both person and legal person Gift Tax Act only person and 3) tax rate, etc. Tax planning of the inheritance mostly received from consultant and ponder of assets owner. There are several approaches such as gradually transfer assets not over 20 million bath when still alive or establish company limited because the corporate tax calculate by fix rate and maybe other tax benefit. This makes the taxation not meet the objectives. If the taxpayer is aware of the purpose of the tax, know the duties and responsibilities for society, and compliance with applicable laws will be most beneficial.