Stamp Duty on Lease Agreements — The Small Issue That Can Become Big

Stamp Duty on Lease Agreements

A small issue that can turn into a big problem.

99% of rental agents don’t know this fact.

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In the real-estate world 🏙️

A “lease agreement” —
whether for a condo, house, land, or commercial space —
is often treated as just two identical copies signed by both parties,
and that’s it.

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But in reality,
these documents are legal evidence,
which can be used in court when disputes arise.

And one small thing that people usually overlook
is stamp duty.

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#What is stamp duty and why is it important? 💡

Stamp duty isn’t VAT or a land office fee.
It’s a type of tax that the law requires for certain legal documents,
so that those documents are legally valid.

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For lease agreements,
Section 14 of the Revenue Code clearly requires
stamp duty to be affixed at the prescribed rate.

If it isn’t, there are two serious consequences:

1️⃣ The contract cannot be used as evidence in court
until the duty is paid with penalties.

2️⃣ The party holding the document (usually the landlord)
is legally responsible for affixing the stamp.

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#Stamp duty rate for lease agreements 💰

Standard rate → 1 baht for every 1,000 baht of total rent
Minimum → 1 baht if total rent is under 1,000 baht
Renewals → must recalculate each time

Example: Rent 20,000 THB per month for 3 years = 720,000 THB total
👉 Stamp duty = 720 baht

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#What if stamp duty is not paid? ⚠️

A common scenario — the lease contract sits in a drawer
without any stamp duty.
Then problems arise:
tenant disappears, rent unpaid, property damaged.

When the landlord files the case,
the court refuses to accept the contract
until back-stamp duty + a six-times penalty is paid.

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#Who must affix the stamp duty? 🧾

By default → the landlord (beneficiary of the lease).
But the tenant can agree to pay if clearly stated in the contract.

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#Practical tips from real cases ✍️

Affix stamp duty within 15 days after signing.
For long-term leases (3–30 years), calculate the exact amount up front.
Attach the official receipt to the contract for future proof.

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#Where to buy stamp duty 📍

Buy it from the Revenue Department nearest you.
❌ Not available at Thailand Post.

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Paying stamp duty on lease agreements
may seem like a small thing but has a big legal impact.
One properly stamped document
could protect you from losses worth millions later.

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#Documents that require stamp duty (28 types) 📑

1. Lease of land, building, or construction.
2. Transfer of shares, bonds, debentures, debt certificates.
3. Hire-purchase agreement.
4. Contract for work or manufacture.
5. Loan agreement or bank overdraft agreement.
6. Insurance policy.
7. Power of attorney.
8. Proxy for company meeting voting.
9. Bill of exchange or promissory note.
10. Bill of Lading.
11. Share certificate or government bond sold in Thailand.
12. Cheque or document used instead of a cheque.
13. Fixed deposit certificate with interest.
14. Letter of Credit.
15. Traveller’s cheque.
16. Certificate document.
17. Pledge agreement.
18. Guarantee agreement.
19. Warehouse receipt.
20. Delivery order.
21. Agency agreement.
22. Arbitration award.
23. Duplicate or counterpart of an instrument.
24. Memorandum of association of a limited company.
25. Articles of association filed with registrar.
26. New articles or copy of memorandum of association.
27. Partnership agreement.
28. Receipt.

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Cr. Illustration by Peakaccount

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