Stamp Duty in Thailand

Stamp Duty in Thailand

Stamp duty in Thailand is a form of indirect tax levied on certain legal instruments as prescribed under the Revenue Code of Thailand. The tax is imposed on the execution of specific documents, ensuring their legal enforceability. 

1. Key Features of Stamp Duty

• Applicability: Stamp duty applies to legal documents listed in Schedule 1 of the Thai Revenue Code. Common instruments subject to stamp duty include:

• Lease agreements.

• Loan agreements or promissory notes.

• Share transfer documents.

• Powers of attorney.

• Service agreements.

• Purpose: It serves as a form of tax on the execution or enforceability of certain contracts or documents.

2. Stamp Duty Rates

Stamp duty is calculated as a flat fee based on the type and value of the document. Below are common examples:

3. Payment and Filing of Stamp Duty

a. Payment Methods

1. Affixing Stamps:

• Adhesive stamps must be affixed to the document to indicate that stamp duty has been paid.

• The stamps must be properly canceled by the parties to the document (e.g., by signing across the stamps or using a dated stamp).

2. Payment in Cash:

• For certain transactions (e.g., high-value documents or electronically filed documents), stamp duty can be paid in cash directly to the Revenue Department instead of using adhesive stamps.

3. Electronic Filing:

• For electronically executed documents, payment can be made online via the Revenue Department’s e-stamp system.

b. Filing Deadline

• Stamp duty must be paid before or at the time of execution of the document.

• For certain cases, such as documents executed outside Thailand, stamp duty must be paid within 30 days of bringing the document into Thailand.

4. Exemptions and Exceptions

Certain instruments are exempt from stamp duty, including:

• Documents executed by government agencies.

• Instruments related to transactions exempted under specific tax incentives, such as those promoted by the Board of Investment (BOI).

• Transfers of shares in specific cases, such as company restructuring approved by authorities.

5. Penalties for Non-Compliance

Failure to pay or properly affix stamp duty can result in:

• Penalties: Equal to 6 times the unpaid stamp duty.

• Legal Consequences: The instrument may not be admissible as evidence in court until the required stamp duty is paid, along with applicable penalties.

6. Practical Considerations

• Proper Documentation: Businesses and individuals should ensure that all required legal instruments are properly stamped to avoid penalties.

• Tax Planning: Seek professional advice for high-value transactions to minimize stamp duty liabilities, especially for share transfers and lease agreements.

• Digital Compliance: For electronically executed documents, businesses should familiarize themselves with the e-stamp system to ensure compliance.

If you have specific questions about stamp duty on a particular document or need assistance with compliance, feel free to ask!

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