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Worldwide Estate and Inheritance Tax Guide 2020 Preface The Worldwide Estate and Inheritance Tax Guide Tax information 2020 (WEITG) is published by the EY Private Client Services network, which comprises The chapters in the WEITG provide information on professionals from EY member firms. the taxation of the accumulation and transfer of wealth (e.g., by gift, trust, bequest or inheritance) The 2020 edition summarizes the gift, estate in each jurisdiction, including sections on who is and inheritance tax systems and describes liable, domicile and residence, types of transfers, wealth transfer planning considerations in rates, payment dates and filing procedures, 42 jurisdictions and territories. It is relevant inheritance and gift taxes, sourcing of income, to the owners of family businesses and private private purpose funds, exemptions and reliefs, companies, managers of private capital gifts, pre-owned assets charges, valuations, enterprises, executives of multinational trusts and foundations, settlements, succession, companies and other entrepreneurial statutory and forced heirship, matrimonial and internationally mobile high-net-worth regimes, testamentary documents and intestacy individuals. rules, and estate tax treaty partners. The “Inheritance and gift taxes at a glance” table on The content is based on information current as page 457 highlights inheritance and gift taxes in of January 2020, unless otherwise indicated all 42 jurisdictions and territories. in the text of the chapter. Please refer to the relevant EY Tax Trackers for information on any For the reader’s reference, the names and symbols COVID-19-related tax regulatory changes that of the foreign currencies that are mentioned in the may have been implemented since then, and/ guide are listed at the end of the publication. or contact your local EY member firm to obtain updated information. This publication should not be regarded as offering a complete explanation of the tax matters referred to and is subject to changes in the law and other applicable rules. Local publications of a more detailed nature are frequently available. Readers are advised to consult their local EY professionals for further information. The WEITG is published alongside three companion Online resources guides on broad-based taxes: the Worldwide Corporate Tax Guide, the Worldwide Personal Tax The EY Global Family Business Center of and Immigration Guide and the Worldwide VAT, Excellence builds on more than 100 years of GST and Sales Tax Guide. EY experience working with and helping family businesses succeed for generations. The Center Each guide represents thousands of hours of tax provides the latest thinking on family business with research. The entire suite is available without the regular publication of exclusive reports and charge online, along with timely Global Tax Alerts thought leadership, as well as surveys compiled in and other insightful publications on ey.com or in collaboration with other internationally renowned our EY Global Tax Guides app for tablets. organizations in the family business arena. Directory EY is globally recognized as a trusted advisor to some of the world’s largest family businesses, Office addresses and telephone numbers, as well and we serve 75% of the world’s top 500 family as names and email addresses of relevant tax businesses (familybusinessindex.com). We contacts, are provided for the EY member firm in designed the Center to bring together our market- each jurisdiction. The listing for each tax contact leading advisors from across the global EY includes an office telephone number, which is a network to share knowledge and insights that will direct-dial number, where available. address family business challenges and provide a seamless service for globally based family-led The international telephone country code is listed businesses, wherever they operate in the world. in each jurisdiction heading. Telephone numbers are presented with the city or area code, but To access the Center and find your local contact, without the domestic prefix (1, 9 or 0) sometimes visit ey.com/familybusiness. used within a jurisdiction. The EY Growth DNA model of Family Businesses highlights the interlinked nature of the eight Internet site characteristics of a successful family business. Further information concerning EY may be found at ey.com. Contents Australia ........................1 Czech Republic .............79 Austria ..........................7 Denmark ..................... 87 Belgium ...................... 15 Finland .......................95 Brazil ......................... 35 France .................... 107 Bulgaria......................43 Germany .................. 133 Canada ...................... 51 Gibraltar .................. 151 China (mainland) ...........65 Greece .................... 159 Cyprus ....................... 71 India ....................... 165 Worldwide Estate and Inheritance Tax Guide | 2020 Contents Continued Indonesia ................. 173 Netherlands .............. 257 Ireland .................... 179 New Zealand ............. 269 Italy ....................... 189 Norway ................... 281 Japan ..................... 201 Philippines ................ 287 Luxembourg.............. 213 Poland ....................297 Malta ......................225 Portugal .................. 307 Mexico ....................235 Russia ......................317 Monaco ................... 251 Singapore ................ 325 Worldwide Estate and Inheritance Tax Guide | 2020 Contents Continued Slovenia .................. 333 Ukraine ...................403 South Korea .............. 341 United Kingdom ......... 415 Spain ...................... 353 United States.............433 Inheritance and gift taxes at a glance ..................................449 Sweden ...................365 Foreign currencies .........................462 Switzerland ............... 373 Index of Private Client Services EY Area contacts ..........................464 Index of individual Thailand ..................383 jurisdiction contacts ......................465 Turkey .................... 393 Worldwide Estate and Inheritance Tax Guide | 2020 Australia Worldwide Estate and Inheritance Tax Guide | 2020 2 Australia A Contacts Brisbane EY Ian Burgess Level 51 [email protected] 111 Eagle Street +61 7 3243 3711 Brisbane, QLD 4000 Australia Peter Vilaysack [email protected] +61 7 3011 3162 1. Types of tax 1.1 Inheritance tax There is no inheritance tax in Australia. 1.2 Gift tax There is no gift tax in Australia. 1.3 Real estate transfer tax There is no real estate transfer tax in Australia. 1.4 Endowment tax There is no endowment tax in Australia. 1.5 Transfer duty In all states and territories, there is an exemption from stamp duty (or only nominal duty) regarding the vesting of dutiable property in the executor of a deceased person. This also applies to the transfer of assets to the beneficiary of a deceased estate. 1.6 Net wealth tax There is no net wealth tax in Australia. 1.7 Others In some circumstances, an immediate income tax liability can arise upon death, including: • Asset transfers on death to a charity, superfund or foreign resident can have capital gains tax (CGT) costs. • Immediate CGT liability can arise when a discretionary trust deed provides that the trust is to vest on a specific date or on the death of the specified individual (often the parents). • When benefits in an Australian complying superannuation fund are paid to non-dependents on death, a tax of 17% is payable on the taxable component. • Earnings in a foreign superannuation or retirement fund that have accumulated since the member became an Australian resident may be taxable on payment to nominated beneficiaries. Worldwide Estate and Inheritance Tax Guide | 2020 Australia 3 A 2. Who is liable? There is no inheritance tax in Australia so this is not applicable. 3. Rates Although Australia does not have an inheritance or gift tax, there are certain circumstances where tax can be paid by an individual as a result of death as described above. Listed below are adult income tax rates for the 2019–20 income year (1 July 2019 to 30 June 2020) for resident individuals. Taxable income (AUD) Tax payable thereon (AUD) 0–18,200 None 18,201–37,000 19% in excess of 18,200 37,001–90,000 3,572 plus 32.5% in excess of 37,000 90,001–180,000 20,797 plus 37% in excess of 90,000 More than 180,000 54,097 plus 45% in excess of 180,000 A Medicare levy of 2.0% of taxable income applies to residents. Individual tax returns are generally due between 31 March and 15 May of the year following year-end (30 June each year) with tax payable broadly five weeks post-lodgement. 4. Exemptions and reliefs There are no inheritance or gift taxes in Australia. There are also exemptions from income tax and capital gains tax. 5. Filing procedures The executor of a deceased estate is responsible for filing the deceased’s final year income tax return. During the administration of the estate, the executor must file income tax returns for the deceased estate. 6. Assessments and valuations As Australia does not have an inheritance tax on death, this is not applicable. 7. Trusts, foundations and private purpose funds In addition to assets held in an individual’s own name, it is common for high-net-worth individuals (HNWIs) in Australia to hold considerable wealth in discretionary trusts, a superannuation fund (particularly nearing and post-retirement) and in private ancillary funds (PAFs). Worldwide Estate and Inheritance Tax Guide | 2020
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