Duty Stamp

[hellohello]

I had a lease drawn up by an accountant. After it was signed and witnessed by all parties, he said that it needed a Duty Stamp or it was not legal.

What is a duty stamp and where do I get one? What are the costs?

Thanks, HH

[Sumitr Man]

More commonly known as Stamp Duty, it is the tax payable on the agreement.

You need to pay it at the local Revenue Department and it will be a % of the contract value with a maximum amount (likely, but some don't).

Strictly speaking you should have been told that the document is not allowed in "evidence" in court proceedings if it does not have the Stamp Duty affixed and that you'll be liable to a penalty if you do not affix the stamp duty within x days of the agreement being signed in Thailand (I think it is 15 days, but please check that): unless the agreement is to be kept at all times outside of Thailand.

SM

Edited September 8, 2005 by Sumitr Man

[Sumitr Man]

Hi HH:

Having re-read my post I would like to clarify 1 issue.

Any agreement signed by all authorised/competent counterparties is legal in Thailand (provided it is not contrary to Thai law - Section 150 of the Civil and Commercial Code), but it is the enforcement procedure that will be affected if the stamp duty is not paid.

A moot point maybe.

SM

[Dragonman]

More commonly known as Stamp Duty, it is the tax payable on the agreement.

You need to pay it at the local Revenue Department and it will be a % of the contract value with a maximum amount (likely, but some don't).

Strictly speaking you should have been told that the document is not allowed in "evidence" in court proceedings if it does not have the Stamp Duty affixed and that you'll be liable to a penalty if you do not affix the stamp duty within x days of the agreement being signed in Thailand (I think it is 15 days, but please check that): unless the agreement is to be kept at all times outside of Thailand.

SM 

<{POST_SNAPBACK}>

Hi SM. Do you know if it's normal for Accountants to draw up leases out here? How do they have the legal knowledge?

[Sumitr Man]

Hi Dragonman:

If you recall, a few years ago there was a move for "professionals" to offer one-stop services to their clients. I understand in the US and UK this tailored off due to the objection of professional bodies, but in Thailand (certainly among the big international accounting firms) the concept was a popular one. As such, many accounting firms in Thailand offer basic legal advisory work - mostly corporate housekeeping work, employment and visa issues, etc. Conversely, to the best of my knowledge, none of the international law firms offer accounting advisory services

I could be wrong when I say this, but circa. 1998 it was my understanding that KPMG had the largest number of lawyers employed in Bangkok, bar Baker & McKenzie.

SM

EDIT - also, there is no professional legal body in Thailand per se. Anyone can "advise" on Thai law and draw up contracts. You do not even need to have an LL.B. The question is, why would you want to hire someone!

Note - if you want to have the right audience in court (I think that's the term you use), i.e. be a barrister, then you do need to have a lawyers' licence (and this does require both an LL.B. and a post graduate test). But you would be suprised how many lawyers working in Thai law firms only have a bachelor's degree and no postgraduate education. Also, there is no "training period" (like the 2 year one in the UK) in Thailand. As soon as you graduate and are employed by a law firm in Thailand you automatcially become an "associate".

SM

Edited September 9, 2005 by Sumitr Man

[Dragonman]

Hi Dragonman:

If you recall, a few years ago there was a move for "professionals" to offer one-stop services to their clients.  I understand in the US and UK this tailored off due to the objection of professional bodies, but in Thailand (certainly among the big international accounting firms) the concept was a popular one.  As such, many accounting firms in Thailand offer basic legal advisory work - mostly corporate housekeeping work, employment and visa issues, etc.  Conversely, to the best of my knowledge, none of the international law firms offer accounting advisory services

I could be wrong when I say this, but circa. 1998 it was my understanding that KPMG had the largest number of lawyers employed in Bangkok, bar Baker & McKenzie.

SM 

EDIT - also, there is no professional legal body in Thailand per se.  Anyone can "advise" on Thai law and draw up contracts.  You do not even need to have an LL.B.  The question is, why would you want to hire someone!

Note - if you want to have the right audience in court (I think that's the term you use), i.e. be a barrister, then you do need to have a lawyers' licence (and this does require both an LL.B. and a post graduate test).  But you would be suprised how many lawyers working in Thai law firms only have a bachelor's degree and no postgraduate education.  Also, there is no "training period" (like the 2 year one in the UK) in Thailand.  As soon as you graduate and are employed by a law firm in Thailand you automatcially become an "associate".

SM 

<{POST_SNAPBACK}>

Thanks SM. Scary!

[Sumitr Man]

if you want a - ask the next lawyer you meet in Thailand if they (or their firm) have professional indemnity insurance. That'll either make you or

SM

[hellohello]

Well I missed my 15 day "window”. So it looks like I'll go back and do it again with the STAMP DUTY on it.

Thanks to you both for your help.

Ps. I wonder what percent of westerners know about this? I talked to many friends (ex-pats) who had no idea about this procedure.