Could be, if your company specializes in finance, real estate, sale of life insurance policies, sales of securities on the Stock Exchange of Thailand, commercial banking, or pawnshop! However, selling of immovable properties may apply to companies or individuals in Thailand. Even though there are some exceptions are applicable, the majority of the sales are subjected to SBT.
Now, why this special business tax is imposed?
The special business tax (SBT) is imposed on these businesses as the difference between value added and production cost cannot be defined well. Both SBT and VAT have been mandated to replace the business tax. Under section 91/5 of the Revenue Code outlines tax bases for SBT, differing on the basis of the type of business, including interests, profits from buying and selling bills of exchange, service fees, gross receipts, and discounts. Just so you know a municipality tax of 10% is also imposed to SBT. However, the tax rate, under 91/5 section will vary from 2.5% to 3% based on the business type.
If you are still not sure whether SBT will be included while calculating your corporate income tax, you can refer to your agency and the expert will be able to tell you better.
