Stamp Duty on Business Commercial Agreements

[AnotherMe]

Recently the revenue department came by and checked our accounts for the last few years. We get a visit from them about every 3-5 years based on our past experience.

 

This time it seemed there was little they could pick-up on after asking about our business and accounting processes so they started asking about our contracts in detail. They said they were expecting to see Stamp Duty on all of them and because we could not show it, they now want us to resolve this retroactively.

 

I'd like to ask for people's experience of this:

1) Is Stamp Duty relevant for Business to Business Agreements in Thailand?

My staff googled on the web and could only find references to Government contracts (not B2B). Apparently our agreements fall under the 'hire-of-work' category 4 of stamp duty. However, when looking at this in detail, the law says:

The hire of work is a contract whereby a person, called contractor, agrees to accomplish a definite work for another person, called employer, who agrees to pay him a remuneration of the result of the work.

http://library.siam-legal.com/thai-law/civil-and-commercial-code-contract-labor-section-587-607/

I asked my staff to check the law in Thai and it also refers to 'person' to 'person' and nothing about business to business.

 

So my question is, where in the law if anywhere does it specify that stamp duty is relevant on B2B agreements?

 

 

2) Assuming it is relevant, and we have 2 copies of an agreement (one for supplier and one for customer). Which version should have the stamp duty on it. Assuming the amount is 1 THB of stamp duty per 1,000 THB of contract value.

 

 

3) Only 1 customer in about 10 years has actually asked us about this so it makes me question how serious companies take this for B2B?

 

 

Thanks in advance for any thoughts / suggestions / insight to this.

 

AnotherMe

[blackcab]

1. A limited company is classified as a Juristic Person - that being an artificial person recognised in law as having rights and duties.

 

It is this fundamental definition that allows a company to separate it's liability from that of its shareholders.

 

2. Your contract, because it will give you something to show next time you get an inspection. However make a photocopy of the revenue certificate and attach it to the second contract.

 

3. Most tax is on a self declared basis. Things only get tightened up as a result of enforcement.

[AnotherMe]

Thanks for your reply Black Cab. ?