It’s another kind of indirect tax introduced in 1992 so as to replace Business Tax. What really happens is that there are certain types of businesses that are excluded from Value Added Tax (VAT), those will instead be liable to Special Business Tax (SBT).
So, does your business need to pay SBT, let’s find out.
Person subjected to SBT
- “Sale of an immovable property in a commercial or profitable manner, regardless of the way in which the property is acquired, only in accordance with the rules, procedures and conditions prescribed by a royal decree;
- Banking under the law that governs commercial banking or other specific law;
- Pawn broking under the law governing pawnshops;
- Business with daily transactions similar to commercial banks, such as provision of loans, provision of guarantees, exchange of currencies, issuance, purchase or sale of bills or transfer of money abroad by different means;
- Sale of securities in a securities market under the law governing securities exchange of Thailand;
- Life insurance under the law governing life insurance;
- Any other business as prescribed by a royal decree.”
Businesses that may be subjected to SBT
|
Type of business according to Section 91/2 |
Tax bases according to Section 91/5 |
Tax rate according to Section 91/6 |
|
Commercial Banking |
(a) Interest, discounts, fees, services, gross profits from buying, selling or receiving bills of exchange or debt notes |
(a) 3.0% |
|
(b) gross profits from exchanging, buying and selling foreign currency, from issuing any bills of exchange or debt notes, and from transferring money to a foreign country |
(b) 3.0% |
|
|
Finance, securities, and credit foncier |
(a) Interest, discounts, fees, services, gross profits from buying, selling or receiving bills of exchange or debt notes |
(a) 3.0% |
|
(b) gross profits from exchanging, buying and selling foreign currency, from issuing any bills of exchange or debt notes, and from transferring money to a foreign country |
(b) 3.0% |
|
|
Life insurance |
Interests, fees, services |
2.5% |
|
Pawnshop business |
Interests, fees, and money, assets, compensation, or any valuable interest received or receivable from selling the overdue pawned property |
2.5% |
|
Business with regular transactions similar to commercial banking |
(a) Interest, discounts, fees, services, gross profits from buying, selling or receiving bills of exchange or debt notes |
(a) 3.0% |
|
(b) gross profits from exchanging, buying and selling foreign currency, from issuing any bills of exchange or debt notes, and from transferring money to a foreign country |
(b) 3.0% |
|
|
Sale of immovable property or real estate in a commercial or profitable manner |
Gross receipts |
3.0% |
|
Sale of securities in a securities market |
Gross receipts |
0.1% Currently under the exemption |
|
Any other business prescribed by the royal decree |
According to the royal decree |
According to the royal decree |
Source: https://www.siam-legal.com/thailand-law/specific-business-tax-in-thailand/
SBT Registration
Those who are subjected to Special Business Tax, they must register their entity within 30 days of its operation at the Area Revenue Office. In case of a foreign resident, the individual who is an agent of the operator shall be responsible to undertake the Specific Business Tax registration.
SBT return should be filed at the District Revenue Office within 15 days on a monthly basis whether or not the business earns an income.
