Specific Business Tax in Thailand

 

      Specific Business Tax (SBT) is another kind of indirect tax introduced in 1992 to replace Business Tax. Certain businesses that are excluded from VAT will instead be subject to SBT.

 

1.  Taxable Person

     Any person or entity who engages in certain businesses in Thailand is subject to SBT instead of VAT. Businesses that are subject to SBT include;

    -     Banking, Financial and similar business,
    -     Life Insurance,
    -     Pawn Brokerage,
    -     Real Estate,
    -     Any other business specified by the Royal Decree i.e. business engages in repurchasing agreement (REPO) and factoring.

2.  Exemptions

       Activities of certain entities are exempted from SBT such as:

    2.1     

Activities of Bank of Thailand, Government Savings Bank, Government Housing Bank and Bank for Agriculture and Agricultural Cooperatives;
    2.2     

Activities of the Export-Import Bank of Thailand, the Industrial Finance Corporation of Thailand, Asset Management Corporation, Small Industrial Finance Cooperation and Secondary Mortgage Corporation;
    2.3     

Activities of National Housing Authority, Government Pawn Brokerage and Pension Fund; and
    2.4     

Activities of selling securities listed in the Stock Exchange of Thailand.

3. Tax Base and Tax Rates

    
Business     Tax Base     Tax Rate
(%)
1.  Banking, Finance and similar business     Interest, discounts, service fees, other fees, profits          from foreign exchange     3.0
2.  Life Insurance     Interest, service fees and other fees     2.5
3.  Pawn Brokerage     Interest, fees, remuneration from selling overdue property     2.5
4.  Real estate     Gross receipts     3.0
5.  Repurchase Agreement     The difference between selling price and repurchasing price     3.0
6.  Factoring     Interest, discounts, service fees and other fees     3.0

Remark : Local tax at the rate of 10 % is imposed on top of SBT.

4.  SBT Registration

      Any entity or person who is subject to SBT must register to be SBT registered person or entity (Form SBT 01) within 30 days of its first day of operation at the Area Revenue Office if it is situated in Bangkok or at District Revenue Office it is situated elsewhere. Should taxpayer have several branches or offices, registration application must be submitted to Area or District Revenue Office where the headquarter is situated.

5.  Tax Return and Payment

      SBT taxable period is a calendar month. SBT return (Form SBT 40) must be filed on a monthly basis regardless whether or not the business has income. SBT return and payment must be submitted to the District Revenue Office within 15 days of the following month. If taxpayer has more than one place of business, each place of business must file its return and make the payment separately unless there is an approval from the Director-General

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