BDO Tax Newsletter: Prescribing Criteria for Calculating the Value of Assets Subject to Inheritance
BDO Tax Newsletter: Prescribing Criteria for Calculating the Value of Assets Subject to Inheritance
Thailand Clarifies Valuation Rules for Inheritance Tax on Private Company Shares
Thailand’s inheritance tax applies only to estates exceeding THB 100 million, with preferential rates for direct descendants or ascendants (5%) and full exemptions for spouses. In 2025, the Revenue Department issued a formal amendment to clarify how certain assets, particularly shares in private companies, may be valued for inheritance purposes.
Background
On 5 February 2016, the Minister of Finance issued the first Ministerial Regulation, “Prescribing Criteria for Calculating the Value of Assets Subject to Inheritance Tax,” which defined taxable assets as:
- Immovable property
- Securities under the Securities and Exchange Act
- Deposits or similar monies withdrawable from financial institutions
- Registered vehicles
- Financial assets prescribed by Royal Decree
Clause 3 of this regulation provided that the value of unlisted shares should equal their book value in the accounting period preceding the transfer, with additional rules for companies holding shares in other entities.