How much tax to pay for a ‘Gratuitous Gift’?

Did you know that you have to pay tax on lands, cash, cars, and accessories given by our parents or lover which is called a ‘Gift Tax’? ACU PAY will conclude the details of this tax for you to understand easily.

What is a Gift Tax?

The gift tax is an individual income tax levied on the person who acquires property from a donor before the donor dies to prevent the avoidance of inheritance tax. Taxation will be levied on assets such as chattel of all types calculated which can be calculated as money and real estate of all types.

What kind of property needs to pay tax?

All types of chattel which can be calculated in money such as cash, cars, gold, and jewelry.

The person responsible for paying taxes is the person who receives the property, divided into 2 cases.

Case 1 A person earns an income from sponsorship or gratuitous giving by parents, heirs, or spouses

The gratuitous gift will be calculated at a tax rate of 5% of the value of assets received over 20 million baht each tax year.

Case 2 A person who receives money from an Ethical duties sponsorship or gratuitous giving on the occasion of a ceremony or the occasion of tradition from persons other than parents, heirs, or spouses.

The gratuitous gift will be calculated at a tax rate of 5% of the value of assets received over 10 million baht each tax year.

All types of real estate such as houses, buildings, habitation, and lands

The persons responsible for paying taxes are the parents who legally transferred ownership to their children.

However, it does not include adopted children. By law, it is considered a “vendor” of real estate. Therefore, it is obligated to pay personal income tax and withholding tax and submit to the employees while rights or legal acts are registered under the land law.

The gratuitous gift will be calculated at a tax rate of 5% of the value of assets received over 20 million baht each tax year.

Tax Filing

Property subject to Gift Tax is subject to personal income tax by March 31 of the following year.

Since the Gift Tax is an income in type 8, the tax filing must be submitted in the P.N.D 90 form. Tax can be paid at the rate of 5% of the property’s value over 10 million and 20 million according to the conditions prescribed by law, or can be calculated with all income.

Nevertheless, the Gift Tax is ‘exempted’ only the money given for encouragement to athletes, and staff coaches who made the country famous. This means that if the recipient is an athlete or staff coach, and the amount received for encouragement is more than 10 million baht, they will be exempted as a special case without having to pay personal income tax for the money over 10 million baht of the money for encouragement.

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