Stamp duty is a tax that is imposed on legal documents and other instruments. Payment of the duty is certified by the attachment of a stamp.
Thailand’s Revenue Code lists the types of instruments that are subject to stamp duty. It applies to 30 different types of legal documents, at rates specified in the schedule attached to the Chapter VI of Title II of the Revenue Code.
The tax is levied on documents or instruments related to land transfers and leases, stock transfers, debentures, letters of credit, mortgages, promissory notes, annuities, life insurance policies, powers of attorney, and travelers’ checks. These instruments are subject to duty at a rate of 0.1 percent, without a specified upper limit. Loan documents are subject to duty at a 0.05 percent rate, subject to an upper limit of 10,000 baht.
Stamp duty is applied to instruments and not to persons or transactions. Duty stamps must be affixed to a document when it is executed if the document is executed in Thailand, or by 30 days of the date, the document is brought into the country.
Below are the instructions and guidance from the Revenue Department of Thailand regarding stamp duty:
1.1 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.
1.2 If an instrument liable to duty is executed outside of Thailand, the first holder of the instrument in Thailand shall pay the duty by stamping at the full amount and canceling within 30 days from the date of receiving the instrument. If he does not comply as such, the instrument shall not be deemed duty stamped.
If he does not comply with the provisions of Paragraph 1, any holder of the instrument shall pay the duty by stamping at the full amount and canceling, and then he shall be able to submit the instrument for collection, endorsement, transfer, or claiming of benefit.
Any holder who acquires possession of the instrument in accordance with this Section before the expiration of the time limit specified in Paragraph 1 may pay the duty by stamping at the full amount and canceling, and he has the right of recourse against the previous holders.
1.3 If a bill submitted for payment is not duly stamped, the recipient of the bill may pay the duty by stamping at the full amount and canceling and may either have the right of recourse against the person liable to duty or deduct the amount of duty from the payment due.
The instruments liable to stamp duty include, inter alia, transfers of land, a lease, stock transfers, debentures, mortgages, life assurance policies, annuities, power of attorney, promissory notes, letters of credit, travelers’ cheques.
"Duty stamped" means:
(1) in the case of an adhesive stamp, payment of duty is made by affixing a stamp on the paper, before or immediately when an instrument is executed, in an amount not less than the duty payable, and canceling such stamp; or
(2) in the case of an impressed stamp, payment of duty is made by using a paper with an impressed stamp in an amount not less than the duty payable and canceling such stamp, or by submitting an instrument to an official to impress the stamp and paying an amount not less than the duty payable and canceling such stamp; or
(3) in the case of payment by cash, payment of duty is made in cash in an amount not less than the duty payable in accordance with the provisions of this Chapter or in accordance with a regulation prescribed by the Director-General with the Ministers approval.
In stamping duty as prescribed under (1) and (2), the Director-General shall have the power to order the compliance in accordance with (3) instead
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.
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