1. Persons liable to stamp duty
Only instruments listed in the stamp duty schedule are subject to the stamp duty and the persons liable to pay stamp duty are those listed in column 3 of the schedule. They are, for example, the persons executing the instrument, the holders of the instrument or the beneficiary.
2. Instruments liable to stamp duty
The instruments liable to stamp duty include, inter alia, transfers of land, alease, stock transfers, debentures, mortgages, life assurance policies, annuities, power of attorney, promissory notes, letters of credit, travelers cheques.
3. Exemptions
3.1 General exemptions under the Revenue Code. They are:
- instruments listed in the stamp duty schedule;
- certain government departments and bodies and other organisations under section 121 of the Revenue Code, provided that this exemption shall not be extended to a government organisation using capital or circulating funds for carrying on commercial activities or to a commercial undertaking operated by a local government authority.
3.2 Exemptions under Royal Decrees, the order of the chairman of the National Executive Council no. 75/2515 B.E., dated December 8, 2515 B.E., and Thai laws
3.2.1 Exemption under Royal Decrees
Exemptions from stamp duty, provided in various Royal Decrees, are granted to the following examples:
(1) the Bank of Thailand;
(2) the Government Housing Bank;
(3) the Bank for Agriculture and Agricultural Co-operatives;
(4) a person carrying on business of transport, only in respect of receipt of passenger fares;
(5) a person carrying on entertainment business, only in respect of the receipt of admission fee;
(6) the Industrial Finance Corporation of Thailand;
(7) a surety, only in respect of suretyship covering debts on account of loans and advance made by the Bank for Agriculture and Agricultural Co-operatives;
(8) an issuer of receipts, only in respect of receiving money representing loans and advances made by the Bank for Agriculture and Agricultural Co-operatives;
(9) the National Housing Authority;
(10) a transferor, only in respect of the transfer of registered or approved securities for which the Stock Exchange of Thailand acts as regristrar;
(11) a person liable to duty, in respect of an instrument on which the stamp duty is less than one Baht, and in respect of a fraction of one Baht for an instrument subject to stamp duty amounting to one Baht or more;
(12) a transferor, only in respect of the transfer of bonds issued by the Bank of Government Housing Welfare, if the Bank of Thailand acts as registrar for such transfer;
(13) a contractor, only in respect of being engaged in mineral ore exploration under a contract made which a governmental agency, and only if the governmental agency does not award any compensation other than the right of production in the area covered by the contract;
(14) the Fund for Rehabilitation and Development of Financial Institutions;
(15) a transferor, only in respect of the transfer of bonds issued by the Bank of Thailand;
(16) a transferor, only in respect of the transfer of instruments liable to stamp duty between a provident fund set up under the Ministerial Regulation No. 162 (B.E.2526) Issued under the Revenue Code Governing provident Funds and a provident fund set up under the law governing provident funds;
(17) a transferor of bond issued by government enterprises;
(18) the Small Industries Finance Corporation;
(19) the Small Industries Credit Insurance Corporation;
(20) the operator of international banking facilities under the Notification of Ministry of Finance, subject: Operation of international banking facilities by commercial banks dated 16th September B.E. 2535, or as subsequently amended: Only in the case where the operator is a person liable to duty under the Stamp Duty Schedule;
(21) the Bank for Export and Import of Thailand.
3.2.2 Exemption granted by the order of the chairman of the National
Executive Council no. 75/2515 B.E., dated December 8, B.E. 2515
Juristic companies and partnerships organised under the laws of the United States which are parties to contracts with the United States Government in respect of the business carried on in Thailand in connection with the maintenance of military equipment and supplies and related services performed under contracts entered between such juristic companies or partnerships and the United States Government for the projects approved by the Thai Government, provided that such juristic companies or partnerships do not carry on any other business in Thialnd.
3.3.3 Exemption granted by Thai laws
There are a number of Thai laws that exempt stamp duty on certain entities such as:
(1) The Port Authority of Thailand Act;
(2) The State Railway of Thailand Act;
(3) The Petroleum Act (B.E. 2514);
(4) The Petroleum Income Tax Act (B.E.2514)
4. Rate of Stamp Duty
Rates of stamp duty are given in the schedule attached to the Chapter VI of Title II of the Revenue Code. The rates of duty range from 1 Baht to 200 Baht. A sample of stamp duty rates on some selected instrument is as follows:
Nature of Instrument/Transaction | Stamp Duty |
1. Lease of land, building, or 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 |
2. Transfer of share, debenture, bond, and certificate of indebtedness issued by any company, association, body of persons or organisation For every 1,000 Baht or fraction thereof of the paid-up value of shares, or of thenominal value of the instrument, whichever is the greater. | 1 Baht |
3. Hire-purchase of property For every 1,000 Baht for fraction thereof of the total value. | 1 Baht |
4. Loan of money or agreement for bank overdraft For every 2,000 Baht or fraction thereof of the total amount of loan or the maximum amount of overdraft agreed upon. | 1 Baht |
5. (1) Bill of exchange or similar instrument used like bill of exchange For each instrument (2) Promissory note or similar instrument used like promissory note For each instrument | 3 Baht 3 Baht |
6. Bill of lading If issued in a set, every one of the set must be stamped at such rate. | 2 Baht |
7. Cheque or any written order used in lieu of cheque For each instrument | 3 Baht |
8. Letter of credit (a) issued in Thailand For value less than 10,000 Baht For value of 10,000 Baht or over (b) issued abroad any payable in Thailand For each payment | 20 Baht 30 Baht 20 Baht |
9. Memorandum of association of a limited company submitted to the registrar. | 200 Baht |
5. Enforcement
5.1 Surcharge
5.1.1 Where an instrument is not duly stamped, the person liable to duty or the holder of the instrument or the beneficiary thereunder shall be entitled to present the instrument to the tax official for payment of duty who shall allow payment of the duty, subject to the following provisons:
(a) Where the instrument not duly stamped is an instrument executed in Thailand and is presented to tax official for payment of duty within 15 days from the day when the instrument was required to be duly stamped, payment of duty shall be allowed merely at the rates set forth in the Stamp Duty Schedule.
(b) In other cases, payment of duty shall be allowed, but a surcharge shall be imposed as follows:
(1) If it appears to the tax official that no more than 90 days have passed since the days when the instrument was required to be duly stamped, there shall be imposed a surcharge of twice the amount of duty or of 4 Baht, whichever is higher.
(2) If it appears to the official that more than 90 days have passed since the day when the instrument was required to be duly stamped, there shall be imposed a surcharge of five times the amount of the duty or of 10 Baht, whichever is higher.
5.1.2 If, in consequence of the inspection conducted by the official or of the charge preferred or information furnished by any person, whether or not a government official, it appears that:
(a) a receipt required to be issued under the Revenue Code has not been issued, the tax official shall have the power to charge the full amount of duty, and in addition, to impose a surcharge of six times the amount of the duty or of 25 Baht, whichever is higher.
(b) an instrument has not been duly stamped because
(1) no stamp has been affixed, the tax official shall have the power to charge the full amount of duty and, in addition, to impose a surcharge of six times the amount of the duty or of 25 Baht, whichever is higher.
(2) the amount of the stamps affixed is less than the amount of duty payable, the tax official shall have the power to charge the deficiency and, in addition, to impose a surcharge of six times the amount of the deficiency or of 25 Baht, whichever is higher.
(3) in all other cases, the competent official shall have the power to impose a surcharge equal to the amount of duty payable or 25 Baht, whichever is higher.
5.2 Punishment
(1) Whoever liable to duty or required to cancel stamps fails or refuses to pay the duty or to cancel the stamps shall be punished with a fine not exceeding 500 Baht.
(2) Whoever, with a view to evading payment of duty, issued a receipt of less than 10 Baht for the value received of 10 Baht or over, or divides the value received, or, with a view to evading compliance with the legal provisions on the stamp duty, wilfully falsifies any instrument, shall be guilty and punished with a fine not exceeding 200 Baht.
(3) Whoever wilfully puts a false date of cancellation of a stamp shall be punished with a fine not exceeding 500 Baht or imprisonment not exceeding three months or both.
(4) Whoever fails to prepare or keep records of the daily total of money or price, or fails to issue a receipt immediately on demand in pursuance, or issues a receipt not stamped in the correct amount, shall be punished with a fine not exceeding 500 Baht.
(5) Whoever by himself or in conspiracy with another person prevents issuance of a receipt, or fails to issue a receipt immediately upon receiving payment of money or price or issues a receipt showing an amount less than that of the money or price actually received, shall be punished with a fine not exceeding 500 Baht or imprisionment not exceeding one month or both.
(6) Whoever knowing fails to extend facilities to the tax official or tax inspector in the performance of his duty, or seizure of any instruments or documents, or disobeys the summons issued by the tax official or tax inspector or refuses to give answers when questioned, or contravenes the provisions on issuing receipts or invoices or procedural directions issued by the Director-General of the Revenue Department shall be guilty and punished with a fine no exceeding 500 Baht.
(7) Whoever, with fraudulent intent, has in possession a stamp known to be forged or deals in stamps which have been used or declared out of use by Ministerial Regulations shall be guilty and punished with a fine not exceeding 5,000 Baht or imprisionment not exceeding three years or both.
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