Stamp duty is a significant tax obligation for companies in Thailand, applied to most documents filed with government agencies and official company documents. Key dutiable instruments include work agreements, land transfers, leases, share transfers, debentures, mortgages, insurance policies, annuities, powers of attorney, promissory notes, letters of credit, and cheques.
Who Pays Stamp Duty?
Only the instruments listed in the stamp duty schedule are subject to this tax. Those responsible for paying the stamp duty are usually the parties associated with the instruments, such as the persons executing the documents, the holders, or the beneficiaries.
Common Methods to Pay Stamp Duty
There are two common methods to pay stamp duty:
- Affixing Stamps: Directly to the instruments.
- Payment in Cash: Filing Form Or. Sor. 4 and paying at a Revenue Department office.
Notable instruments requiring cash payment include:
- Lease agreements for land, buildings, or floating houses with a total rental fee of Baht 1 million or more.
- Lease agreements requiring registration under land law.
- Hire-of-work service agreements with service fees of Baht 1 million or more.
E-Stamp Duty
For e-Instruments: Since July 2019, stamp duty on electronically executed dutiable instruments must be paid via the e-Stamp Duty system. The Revenue Department has issued notifications guiding the payment process through this system, including definitions, payment methods, due dates, and penalties for non-compliance.
To pay via the e-Stamp Duty system, taxpayers must file Form Or. Sor. 9 on the Revenue Department’s website or API, generating a QR code and pay-in slip for electronic payment.
Payments must be made before executing the instrument or within 15 days after execution. Late payments can result in fines and surcharges. However, a grace period allows cash payments at Revenue Department offices for e-instruments executed from August 19, 2022, to December 31, 2025.
For Paper Instruments: Certain traditionally executed instruments can also use the e-Stamp Duty system during the grace period, as specified in the Director-General’s Notification no. 69.
Dutiable Instruments
Both e-instruments and traditional paper instruments subject to stamp duty via the e-Stamp Duty system include:
- Leases of land, buildings, constructions, or floating houses.
- Transfers of shares, debentures, bonds, and certificates of debt.
- Hire-purchase and hire-of-work agreements.
- Loan or bank overdraft agreements.
- Insurance policies, authorization letters, proxy voting letters.
- Bills of exchange, promissory notes, bills of lading.
- Share or debenture certificates, certificates of debt, government bonds.
- Cheques, fixed deposit receipts, letters of credit, travelers’ cheques.
- Carrier receipts, guarantees, pledges, warehouse receipts, delivery orders.
- Agency, partnership agreements, and receipts related to vehicle transactions.
The e-Stamp Duty system currently does not support late payments, which must be made at the area Revenue Department offices.
For more information and assistance with stamp duty payments, contact B-Accounting. We ensure your compliance with Thailand’s tax regulations.
Keywords: B-Accounting, Thailand, Tax, Stamp Duty, Payment, Hire of Work
