18 Dec 2014 Net Impact Luncheon Talk by Dr. Suvarn Valaisathien

1. Dr. Suvarn Valaisthien
Chairman, Saver Club
(www.saverclub.org)
____________________
Net Impact Bangkok Professional Chapter Luncheon Meeting
18 December 2014
Estate Planning
18 December 2014

2. Inheritance Tax Law (1)
1) National Legislative Assembly is
deliberating the bill
2) Expected passage - March 2015
3) Enforcement in 90 days
June – July 2015
1
18 December 2014

3. Inheritance Tax Law (2)
4) Tax Rate 10%
4.1 10% on amount exceeding
Baht 50 million
4.2 5 - 35% for non-descendant
4.3 no tax between husband and wife
4.4 gift during lifetime is taxed at 5% on
amount in excess of Baht 10 million
per year
2
18 December 2014

4. Inheritance Tax Law (3)
5) Tax collected on registered property
such as land, building, condominium,
vehicles, securities, bonds and mutual
funds
6) Property with no registration such as
watches, antiques are not taxable
3
18 December 2014

5. Sunflowers (1888)van gogh paintings - van gogh art
4
18 December 2014

6. Maternity Artist Interpretation - Pablo Picasso Painting
5
Early Period Abstract
18 December 2014

7. Offshore Property
1) Offshore Property to pay tax where it
is located.
2) After liquidation, money brought back
could be taxed
3) Government policy
1. No collection target set
2. Inheritance tax is not a revenue source
3. Objective is re-distribution of wealth
4. High collection cost expected
5. It is a new kind of tax for both collector
and payer
6
18 December 2014

8. Issues relating to collection
1) Government lack data on the property
of tax payer.
2) Problem with executor.
3) Gift tax is difficult to impose.
7
18 December 2014

9. Inheritance Tax
1) As of 18 December 2014 - No inheritance tax.
2) Transfer of immovables subject to transfer fee.
3) Many countries already canceled inheritance tax.
4) Capital flight.
5) No incentive to promote savings.
6) Heirs may have to dispose off asset to pay tax.
- Government gives two years deferment with no
interest charge.
8) People live longer and the state has to wait.
8
18 December 2014

10. What to Give?
1) Teach your kids to be good citizen, work hard,
waste no money.
2) Invest prudently, profit is No. 2, risk is No. 1.
3) Be kind to people and the underprivileged.
4) Send them to top school.
9
18 December 2014

11. The Wall Street Journal
Tuesday, September 23, 2014
10

12. Estate Planning
1) Own less immovables, invest in intellectual
property.
2) Consider property fund that yields 7-10%.
3) Set up holding company, an entity never
die.
4) Keep some gold, no registration required,
no tax.
5) Invest offshore.
11
18 December 2014

13. 12
18 December 2014

14. Offshore Assets
1) 0% Tax Territories
2) Filing and Disclosure
3) Holding company and Trustee
4) Power of Attorney
5) Confidentiality
13
18 December 2014

15. Estate Planning
1) When to Give
2) To Whom
3) How Much
4) Transaction Costs
5) Control
6) Documentation
14
18 December 2014