On 17 June 2019, the Thailand Revenue Department lawyers issued a Tax Ruling concerning Thailand Stamp Duty Tax payable by first holders of instruments.

This Tax Insight summarizes the Tax Ruling.

The Thailand Law

Section 111 of Thailand's Revenue Code prescribes:

If an instrument that is subject to Stamp Duty is outside Thailand, the first holder of the instrument in Thailand shall pay the Duty within 30 days from the date of receiving the Instrument.

Tax Ruling No 0702/4024 dated 17 June 2019

The Thailand Revenue Department's Tax Ruling No 0702/4024 dated 17 June 2019 clarifies this law, as follows:

1. For the agreements in this case that are instruments, which are subject to Stamp Duty Tax and which are in a foreign country, it's the duty of the first holder of the instrument in Thailand to pay the Stamp Duty within 30 days from the date of receiving the instruments as prescribed in Section 111 of the Revenue Code.
2. If the first holder does not pay the Stamp Duty Tax within 90 days from the 30th day after receiving the instruments, the first holder is liable to pay the surcharge of 5 times the Stamp Duty Tax as prescribed in Section 113 (2) (b) of the Revenue Code and also the fine of 500 baht under Section 124 of the Revenue Code.
3. For the case of the first holder receiving the originals of the instruments by post, even though they are received only for the purpose of forwarding to beneficiaries, as the receiver is the first holder in Thailand, the first holder has the duty to pay the Stamp Duty within 30 days as prescribed in Section 111; and   
4. For the case of the first holder receiving photos of the said instruments by email, as photos are not copies or counterfoils of instruments within the meaning of the law, the photos received by email are not subject to Stamp Duty Tax.

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