BANGKOK (AP) — Thailand will start collecting inheritance tax for the first time next February.
The Inheritance Tax Act 2015 says a 5 percent tax will be imposed on inherited assets worth more than 100 million baht ($2.8 million) for parents or direct descendants, and 10 percent for others.
The act became law with its publication this week in the Royal Gazette, after passage in May by the interim National Legislative Assembly.
The gazette said the purpose of the law was to combat social injustice arising from economic inequality, and to use the revenues to develop the country.
Finance Minister Sommai Phasee has said the government expects to collect about 4 billion baht ($113 million) per year from the tax.
The measure, which goes into effect 180 days after its Aug. 5 publication, was part of a package of tax reforms sought by the military government that took power after a coup last year. It is less ambitious than what the government originally sought, a tax rate of 10 percent on a lower threshold of 50 million baht ($1.4 million).