CHAPTER
15
OTHER
TAXES
In this Chapter, we discuss other
taxes that may be encountered in everyday business transactions.
Stamp duty Stamp duty liability arises and duty stamps must be affixed to various
documents at the time of execution, if the document is executed in Thailand, or
within 30 days of the date when the document is brought into Thailand.
Stamp duty has been eliminated from
most government forms. Where registration of a document is required such as in
the case of sale of land, leases, articles and memoranda of association, etc.,
registration fees in addition to stamp duty are charged.
Where there is a fraction of one
Baht due, the stamp duty is rounded up. For loan agreements, the maximum stamp
duty is Baht 10,000.
Stamp duty rates A summary of stamp duty arising on common business transactions is set
out below:
|
Document |
Stamp duty |
|
Registered
leases of land, buildings and houseboats, calculated on the total rent for
the term |
0.1% |
|
Receipt
for consideration paid for registered transfer of ownership or lease of immovable
property. (This is due when title is transferred or lease payments are made
(an exemption exists if the sale is subject to SBT) |
0.5% |
|
Transfer
of shares, based on par value or consideration, whichever is higher |
0.1%. |
|
Loan
agreements or overdraft facilities |
0.05%,
subject to maximum duty of Baht 10,000 |
|
Arbitration
awards |
0.1%
of the amount in dispute: |
|
Hire
of work agreements |
0.1%. |
|
Bills,
notes, cheques, |
3
Baht per
item |
|
Powers of attorney |
10
Baht per single act, per person or group authorized to act |
|
Powers of attorney |
30
Baht for multiple acts per person or group authorized to act |
|
Guarantees |
1‑10
Baht |
|
Memorandum
or Articles of Association |
200
Baht each |
|
Signed
duplicates |
Same
as the original stamp duty, but not exceeding 5 Baht per document. |
Local development land tax Local development land tax is imposed on owners or possessors of land, according
to the size of the land and its assessed value. Land subject to the land and house
Tax, small parcels of land for residential and agricultural purposes and
certain other categories of land, are exempt from this tax.
Land and house tax A person who leases out land or land and buildings, including
apartments and condominiums, is subject to Land and House Tax at the rate of
12.5% of the actual or assessed rental value, whichever is higher. Owner
occupied factories and commercial buildings are assessed for this tax at the
same rate, according to the assessed rental value.
In order to reduce their net tax
liability, many landlords who lease property structure such transactions by
using several documents rather than a single lease agreement. As much of the
rental payment as possible is allocated to a furniture rental agreement and/or
service agreement, which is subject to VAT currently at 7%, instead of 12.5% land
and house tax. The tax authorities will accept this, provided the apportionment
of rent and services is reasonable.
During 2004, proposals were made to
reform local development land tax and land and house tax. No changes have been
made to date.
Excise taxes Excise taxes are levied on a variety of goods such as soft drinks and juices,
alcoholic beverages, cement, spirits, matches, tobacco products, petroleum
products, playing cards, air conditioners, mechanical lighters, marble,
granite, etc.
In 2003, excise tax was extended to
a wide range of businesses including: massage parlours, nightclubs, karaoke
bars, cinemas, and racetracks.
As discussed below in Chapter 23 Telecommunications,
IT and the Internet, the concession fees payable by telecom concession
holders to former state enterprises, have now been abolished and replaced by a
special excise duty.
Death duty and gift tax There is no death duty or gift tax in Thailand, although transfers of
land and buildings by gift or inheritance are subject to transfer fees.
There also exist other taxes of
minor importance to foreign businessmen and investors.
Revised 1 December 2006