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Stamp Duty in Thailand - tax on several documents

Discussion in 'Tax issues' started by Stamp, 4 Aug 2013.

  1. Stamp

    Stamp Thread Starter Administrator Staff Member

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    Stamp duties are taxed on instruments and not on transactions or persons. For the purposes of stamp duty, an instrument is defined as any document chargeable with duty under the Revenue Code. The stamp duty rules are contained in Chapter VI of Title II of the Revenue Code.

    1.Persons liable to 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 duty 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.

    2.Instruments liable to stamp duty

    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.

    3.How to duty stamped

    "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 Minister’s 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

    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:

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  2. Stamp

    Stamp Thread Starter Administrator Staff Member

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    ::Stamp Duty::
     
  3. luibkk

    luibkk Well-Known Member

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    The stamp duty schedule lists the contractor as liable for paying the duty stamp in case of "Hire of Work". The question is who is the contractor: the employer, the employee or both?

    Apparently, employees are not contractors so we shouldn't be liable for duty stamp. I think I'll take this question to the revenue office to get it clarified.
     
  4. ramses

    ramses Well-Known Member

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    Employer... You would be the contractee
     
  5. welloutofit

    welloutofit Member

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    As I read it, and I may well be wrong, 'Hire of work' is a contractor contracting to provide a service, as in an agent contracting to provide teachers for a school. This, if I understand it correctly, is not an employment contract.
     
  6. Stamp

    Stamp Thread Starter Administrator Staff Member

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    Thanks, welloutofit. As written in another thread I've haven't seen it much in employment contracts for teachers.
     
  7. luibkk

    luibkk Well-Known Member

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    After a little research I come to the same conclusion. Contractors are either self-employed or some kind of company that provide a service for a specific project or purpose. They are independent in their work.
     

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