Stamp Duty

Stamp duties are payable on most documents filed by companies with Government agencies or entities, and on official company documents. This includes transfers of land, leases of immovable properties, stock transfers, debentures, mortgages, life assurance policies, annuities, power of attorney, promissory notes, letters of credit, cheques etc.

26 May 2016

Instruments and not transactions or persons are subject to stamp duty tax. For the purposes of stamp duty, an instrument is defined as any document chargeable with duty under the Revenue Code.

Only instruments listed in the stamp duty schedule  are subject to stamp duty and the persons liable to pay stamp duty are those associated with the instrument. For example, the persons executing the instrument, the holders of the instrument or the beneficiary.

Instruments executed outside Thailand are not subject to stamp duty until the instrument is brought into Thailand.

For an instrument to be used as evidence in a civil court case, the full amount of the stamp duty (including any surcharge) must be paid.

Hire of Work Contracts

For many companies its instrument subject to stamp duty is the ‘hire of work’ contract. A hire of work contract is defined under Civil and Commercial Code as an agreement whereby one person (the contractor), agrees to perform work for another person (the employer) who agrees to pay remuneration to the contractor.

1. If the remuneration is not known at the time of execution of the contract, the stamp duty should be paid on an estimate of the remuneration.

2. If the remuneration is received several times and the stamp duty paid is not sufficient, additional stamp duty should be paid every time payment is received.

3. If on the termination of a contract, it was found that stamp duty was overpaid, a claim for refund may be made.

4. If the instrument was executed outside of Thailand, the stamp duty must be paid within 30 days of bringing the instrument into the country.

Rates

Stamp duty rates on a selection of commonly seen instruments are as follows:

Nature of Instrument

Stamp Duty

Person Liable to Duty

1. Rental of land, building, other construction or floating house

For every 1,000 Baht or fraction thereof of the rent or key money or both for the entire lease period

1 Baht

Person providing rent

2. Transfer of share, debenture, bond and certificate of debt issued by any company, association, body of persons or organization.

For every 1,000 Baht or fraction thereof of the paid-up value of shares, or of the nominal value of the instrument, whichever is greater.

1 Baht

Transferor

3. Hire-purchase of property.

For every 1,000 baht or fraction thereof of the total value

1 Baht

Person providing hire-purchase

4. Hire of work

For every 1,000 Baht or fraction thereof of the remuneration prescribed.

1 Baht

Contractor

5. Loan of money or agreement for bank overdraft

For every 2,000 Baht or fraction thereof of the total amount of loan or the amount of bank overdraft agreed upon.

Duty on the instrument of this nature calculating into an amount exceeding 10,000 Baht shall be payable in the amount of 10,000 Baht.

1 Baht

Lender

6. Authorization letter

i.e., a letter appointing an agent, which is not in the form of instrument or contract including a letter appointing arbitrators.

  1. authorizing one or more persons to perform an act once only.
  2. authorizing one or more persons to jointly perform acts more than once.
  3. authorizing to perform acts more than once by authorizing several persons to perform acts separately; the instrument will be charged on the basis of each individual who is authorized.

10 Baht

10 Baht

30 Baht

Principal

Principal

Principal

7. Proxy letter for voting at a meeting of a company

  1. Authorized for one meeting only
  2. Authorized for more than one meeting

20 Baht

100 Baht

Authorizer

Authorizer

8. Share or debenture certificate, or certificate of debt issued by any company, association, body of persons or organization

Bond of any government sold in Thailand

For every 100 baht or fraction thereof.

5 Baht
 
 

1 Baht

Holder
 
 

Holder

9. Duplicate or counterfoil of an instrument

Namely, an instrument having the same contents as the original document or contract and signed by the person executing the instrument in the same manner as the original.

  1. If the duty payable for the original does not exceed 5 Baht.
  2. If the duty exceeds 5 Baht.

1 Baht

5 Baht

  1. If there is no party as the contract party the person who pays duty for the original instrument shall pay duty.
  2. If there is another party to the contract, such other party shall pay duty.

For a complete schedule of instruments, the stamp duty and the person liable, please refer to Stamp Duty Schedule in Chapter VI of the Revenue Code .

Payment of Stamp Duty

There are two common methods to pay the stamp duty:

1. Affix the stamps to the instrument

2. Payment in cash* (filing form Or Sor 4 along with the related payment with the Revenue Department)

* Although the term cash used the payment can be made by cheque.

Notable instruments for which the stamp duty must be paid by cash include:

1. Agreement for lease of land, building, other construction or floating house for which the rental fee for the entire lease period is Baht 1m or more;

2. Agreement for lease of land, building, other construction or floating house for which the registration to the officer under the land law is required; and

3. The hire-of-work service agreement for which the service fee is Baht 1m or more.

Surcharge

The late payment of the stamp duty on an instrument is subject to significant surcharges calculated on the stamp duty underpaid.

Days paid late

Surcharge (maximum amount)

Up to 15 days

No surcharge

16 days to 90 days

Two times the amount of stamp duty payable

More than 90 days

Five times the amount of stamp duty payable

Note that should the stamp duty liability be identified by the Revenue Department officer during a tax investigation then the maximum surcharge will be six times the amount of stamp duty payable.

Further sources of information

Revenue Department website:             

http://www.rd.go.th/publish/21986.0.html

http://www.rd.go.th/publish/37758.0.html

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