What is the meaning of these stamps on my lease?

[Barley]

Hi,

Today I went to the Revenue office to get my tax ID.

 

I brought all the necessary paperwork they told me to bring on my last visit.

 

When they looked at my lease, they said there are stamps (like postage stamps) missing.

 

They wanted around 400 TBH from me and then proceeded to paste these stamps on my apartment lease.

 

Then they gave me the Tax ID card.

 

So what are these stamps for and why do I need them? Can anybody enlighten me?

[KittenKong]

Did you get a receipt for the 400B?

[Barley]

No, I did not. But aren't the stamps itself receipt since they are only given out for money?

I mean they are a lot of stamps in different colors.

[NCC1701A]

1 minute ago, Barley said:

I mean they are a lot of stamps in different colors. 

do they look like the stamps they give out at 7/11?

 

 

[NickJ]

My ex wife took out a loan once without telling me about it. She signed a note for it. Then never paid the loan back. It was a private loan. When the person sued her. It was thrown out of court as no duty stamps were applied to it. Maybe a similar deal with your lease.

[KittenKong]

12 hours ago, Barley said:

No, I did not. But aren't the stamps itself receipt since they are only given out for money?

Possibly. I am always deeply suspicious of any payment here that does not generate an official receipt, as in my experience it just means that the money has gone into someone's pocket.

 

When I was still renting my lease had no stamps on it, but that was several years ago and in those days no one ever wanted to see it. When I got my tax ID I was an owner and I think I just showed an electricity bill or something like that.

 

Perhaps @blackcab will comment? He deals with leases as part of his job.

[fxe1200]

To have a legally binding and valid contract, one need to apply duty stamps on the original of the contract. In my case it was 10THB (2x5THB) for a renting contract of an annual rent of 60.000 THB. See attachment.

[blackcab]

The stamp duty for leases is 0.1 per cent of the total annual rent payment. To pay 400b duty your rent must be 33,333 baht per month.

 

You can either purchase tax stamps or for larger amounts (commercial leases) the revenue office print out a small sheet of paper which they affix to the back of the lease.

 

A copy lease needs 1 x 5 baht tax stamp on it.

 

Technically the stamp duty is the responsibility of the lessor to pay, however you were not going to get your TIN without someone paying the tax, so it is what it is really.

 

Strangely enough the revenue office never seems to give receipts for the tax stamps. We claim for them with a petty cash voucher. If we got audited by the revenue office this would be the one expense I would not expect them to query!

[KittenKong]

2 hours ago, fxe1200 said:

To have a legally binding and valid contract, one need to apply duty stamps on the original of the contract. In my case it was 10THB (2x5THB) for a renting contract of an annual rent of 60.000 THB. See attachment.

Amazing Thailand. I have never seen a single condo rental contract with stamps on in Pattaya.

[Barley]

Well, my annual rent is around 130.000, so I think they - well let's say - miscalculated. :)

[NCC1701A]

3 hours ago, KittenKong said:

Amazing Thailand. I have never seen a single condo rental contract with stamps on in Pattaya.

i have been leasing for three years in this house and one year before in another house and no stamps.

 

I take those same lease contracts to immigration, no question about stamps. 

 

 

 

[ukrules]

I always had stamps on my leases when I lived in Bangkok.

 

Means they're doing it in a kind of legitimate way, I think.

 

Of course out of the 32k Baht / month rent I was paying, 50% was for the furniture according to the lease ????

 

I've never seen them since I came to Hua Hin.

[blackcab]

Most short term residential leases don't have stamp duty paid on them. They should, but ultimately it's the lessor's problem if the revenue officials come knocking.

[mtls2005]

On 11/1/2018 at 4:36 PM, blackcab said:

The stamp duty for leases is 0.1 per cent of the total annual rent payment. To pay 400b duty your rent must be 33,333 baht per month.

 

It's a bit vague, but one site says the total amount is for the term of the lease, and should include any key-money or deposit. So if you have a two-year lease, plus a 2-month deposit, it can add up.

 

https://www.rd.go.th/publish/21986.0.html

 

On 11/1/2018 at 4:36 PM, blackcab said:

A copy lease needs 1 x 5 baht tax stamp on it.

 

Good to know. Thanks.

 

[blackcab]

5 minutes ago, mtls2005 said:

...and should include any key-money or deposit.

 

Stamp duty is paid on key money, but not on a deposit.

[mtls2005]

5 minutes ago, blackcab said:

 

Stamp duty is paid on key money, but not on a deposit.

 

Thanks.

 

(I thought a deposit was key money but I see they are quite different. I'm sure there are more differences but it sounds like a deposit, or portion thereof, may be refundable, while key-money is non-refundable. I think I knew that eons ago and forgot it.)

[blackcab]

You're entirely correct. Deposits are:

1. Used in lieu of unpaid rent (rent which has already been taxed for stamp duty, and as such shouldn't be taxed twice)
2. For dilapidations, which are not taxable for stamp duty

Key money is an advance payment of rent, for example:

1. The lessee would pay 2 million baht on signing the contract, then 100,000 baht each month thereafter, for a period of 3 years