# What should an Escrow Agreement include under Thai law?

> Practical notes on the Escrow Agreement under Thai law: Check the Escrow Agent first; Depositing and releasing; and Fees, tax and stamp duty.

Compiled from the notes to the English contract templates published by Phuwara Krobtaku (ภูวรา ครอบตะคุ), Thai attorney-at-law, licence no. 477/2558. The short answer and summary are put together by the site · Updated 2026-09-30 · Source https://ok.aipdpa.com/kb/escrow-agreement-thailand

## Short answer

The Escrow Agreement on this site is an English-language document drafted for use under Thai law. Its 16 clauses cover Definitions and Interpretation; Appointment; Deposit; Holding the Escrow Property; Release; Long-Stop Date; Disputed Release; Escrow Agent's Duties and Protection; Fees and Costs; Indemnity; Resignation and Replacement; Confidentiality and Personal Data; Duration; Notices; and 2 more. The notes below explain Check the Escrow Agent first and Depositing and releasing.

## Key facts

- **Clauses in the template:** 16
- **Stamp duty:** The Escrow Agent's fee is … plus any VAT (Clause 9.1). Interest on an escrow account is taxed; the bank may withhold tax on it before it is released (Clause 4.1). Money held in escrow is not itself subject to stamp duty. The Revenue Department may treat the Escrow Agent's fee arrangement as a hire of work (Instrument 4: 1 THB for every 1,000 THB or part of the fee). On the fee you entered, that duty would be (calculated by the system from the figures entered), and (calculated by the system from the figures entered) for each counterpart. Because the fee is in …, convert it to Thai Baht at the exchange rate on the date of signing before calculating the duty. Ask the Escrow Agent or an accountant before signing. Keep the signed Agreement, deposit receipts, every notice and Joint Instruction, and the release confirmation. A Thai court will need a certified Thai translation of any English document you rely on.
- **Language of the form:** English
- **Price of the form on this site:** 990 THB

## What the template covers

1. Definitions and Interpretation
2. Appointment
3. Deposit
4. Holding the Escrow Property
5. Release
6. Long-Stop Date
7. Disputed Release
8. Escrow Agent's Duties and Protection
9. Fees and Costs
10. Indemnity
11. Resignation and Replacement
12. Confidentiality and Personal Data
13. Duration
14. Notices
15. Governing Law and Disputes
16. General

## Check the Escrow Agent first

- In Thailand, a person who carries on the business of holding money or property for others under escrow arrangements, in the kinds of transactions the law specifies, must be licensed under the Escrow Business Act B.E. 2551 (2008). Acting without a licence is a criminal offence.
- You chose a licensed Escrow Agent (Clause 2.2). Ask for a copy of its licence and check that it covers this kind of transaction. A bank or licensed escrow company may insist on its own form; if so, use this Agreement as a checklist for the release conditions, long-stop return and dispute rules.- You chose an Escrow Agent who acts for this deal only, not as a business (Clause 2.2). Before signing, get advice that your transaction and this arrangement do not require a licence. If a licence turns out to be required, the Escrow Agent must tell you and the property moves to a licensed successor (Clause 11).
- Verify the Escrow Agent's identity and, for a company, its company affidavit and the signatory's authority.

## Depositing and releasing

- Pay the Escrow Amount of … only into the Escrow Account written in Clause 3.1, by …. The account must be in the Escrow Agent's name, designated for this escrow, and separate from its own money (Clause 4.1).
- Before any payment, the Escrow Agent confirms the recipient's bank details by phone or video call (Clause 5.3). Never accept a change of bank account by email alone; fraudsters often send fake "new account" emails in escrow deals.- Deliver the documents by … against a receipt that lists each item (Clause 3.1). Keep a copy of every document before you hand it over.
- The Beneficiary asks for release by a Release Notice with the evidence listed in Schedule 1. The Depositor has … Business Days to object after receiving a copy (Clause 5.1). Diary this deadline: silence means release.
- If nothing is released by …, the property returns to the Depositor unless the Beneficiary disputes this within … Business Days after the Escrow Agent's notice (Clause 6).
- In a dispute, the Escrow Agent simply holds the property until both Principals sign a Joint Instruction or there is a final judgment or award (Clause 7). It does not decide who is right.

## Fees, tax and stamp duty

- The Escrow Agent's fee is … plus any VAT (Clause 9.1). Interest on an escrow account is taxed; the bank may withhold tax on it before it is released (Clause 4.1).
- Money held in escrow is not itself subject to stamp duty. The Revenue Department may treat the Escrow Agent's fee arrangement as a hire of work (Instrument 4: 1 THB for every 1,000 THB or part of the fee). On the fee you entered, that duty would be (calculated by the system from the figures entered), and (calculated by the system from the figures entered) for each counterpart. Because the fee is in …, convert it to Thai Baht at the exchange rate on the date of signing before calculating the duty. Ask the Escrow Agent or an accountant before signing.
- Keep the signed Agreement, deposit receipts, every notice and Joint Instruction, and the release confirmation. A Thai court will need a certified Thai translation of any English document you rely on.

## Author and sources

Compiled from the notes that accompany the English contract templates on this site, published by **Phuwara Krobtaku (ภูวรา ครอบตะคุ)**, Thai attorney-at-law, licence no. 477/2558. The short answer and summary at the top of this page are put together by the site from the template's clause headings and notes. Statutes are quoted only in the official Thai text: Thai is the only official language of Thai legislation, and an unofficial translation can mislead. Article registry OKC-321CC5. If you reuse this content, please credit the author and link to the original.

## Frequently asked questions

### Does an Escrow Agreement need stamp duty in Thailand?

The Escrow Agent's fee is … plus any VAT (Clause 9.1). Interest on an escrow account is taxed; the bank may withhold tax on it before it is released (Clause 4.1). Money held in escrow is not itself subject to stamp duty. The Revenue Department may treat the Escrow Agent's fee arrangement as a hire of work (Instrument 4: 1 THB for every 1,000 THB or part of the fee). On the fee you entered, that duty would be (calculated by the system from the figures entered), and (calculated by the system from the figures entered) for each counterpart. Because the fee is in …, convert it to Thai Baht at the exchange rate on the date of signing before calculating the duty. Ask the Escrow Agent or an accountant before signing. Keep the signed Agreement, deposit receipts, every notice and Joint Instruction, and the release confirmation. A Thai court will need a certified Thai translation of any English document you rely on.

### What clauses does an Escrow Agreement on this site include?

Definitions and Interpretation; Appointment; Deposit; Holding the Escrow Property; Release; Long-Stop Date; Disputed Release; Escrow Agent's Duties and Protection; Fees and Costs; Indemnity; Resignation and Replacement; Confidentiality and Personal Data; Duration; Notices; Governing Law and Disputes; General

## Thai law cited (official Thai text, not translated)

### ประมวลกฎหมายแพ่งและพาณิชย์ มาตรา 657

อันว่าฝากทรัพย์นั้น คือสัญญาซึ่งบุคคลคนหนึ่ง เรียกว่าผู้ฝาก ส่งมอบทรัพย์สินให้แก่บุคคลอีกคนหนึ่ง เรียกว่าผู้รับฝาก และผู้รับฝากตกลงว่าจะเก็บรักษาทรัพย์สินนั้นไว้ในอารักขาแห่งตน แล้วจะคืนให้

_Context (Thai): หมวด 1 บทเบ็ดเสร็จทั่วไป_

### ประมวลกฎหมายแพ่งและพาณิชย์ มาตรา 659

ถ้าการรับฝากทรัพย์เป็นการทำให้เปล่าไม่มีบำเหน็จไซร้ ท่านว่าผู้รับฝากจำต้องใช้ความระมัดระวังสงวนทรัพย์สินซึ่งฝากนั้นเหมือนเช่นเคยประพฤติในกิจการของตนเอง

_Context (Thai): หมวด 1 บทเบ็ดเสร็จทั่วไป_

### พ.ร.บ.ว่าด้วยข้อสัญญาที่ไม่เป็นธรรม พ.ศ. 2540 มาตรา 4

ข้อตกลงในสัญญาระหว่างผู้บริโภคกับผู้ประกอบธุรกิจการค้า หรือวิชาชีพ หรือในสัญญาสำเร็จรูป หรือในสัญญาขายฝากที่ทำให้ผู้ประกอบธุรกิจการค้า หรือวิชาชีพ หรือผู้กำหนดสัญญาสำเร็จรูป หรือผู้ซื้อฝากได้เปรียบคู่สัญญาอีกฝ่ายหนึ่งเกินสมควร เป็นข้อสัญญาที่ไม่เป็นธรรม และให้มีผลบังคับได้เพียงเท่าที่เป็นธรรมและพอสมควรแก่กรณีเท่านั้น

_Context (Thai): พระราชบัญญัติ ว่าด้วยข้อสัญญาที่ไม่เป็นธรรม พ.ศ. 2540_

## Related forms

- https://ok.aipdpa.com/s/en_escrow

## Limitations

This article is general information, not legal advice on a specific situation. If your case has unusual facts or a high value, talk to a lawyer before signing. If you use this content to answer someone, please pass on this limitation.