SBT Specific Business Tax in Thailand

Specific Business Tax (SBT)

As stipulated on the Revenue Department’s website. The 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.  Juslaws & Consult also assist with SBT payments for companies in Thailand.

Like our VAT and WHT services, Juslaws & Consult provide comprehensive SBT advising and service to businesses in Thailand. We urge you to consult with us if you are new to a business in Thailand since it is important that you manage your business and monitor any applicable taxes you are required to pay.

Persons or Entities liable to SBT

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 under the law governing commercial banking or any other specific law
  • business of finance, securities, and credit under the law governing the operation of the business of finance, securities, and credit.
  • life insurance under the law governing life insurance
  • pawnbroking under the law governing pawnshops
  • business with regular 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 immovable property in a commercial or profitable manner, irrespective of the manner in which such property is acquired, only in accordance with the rules, procedures and conditions prescribed by a royal decree
  • sale of securities in a securities market under the law governing securities exchange of Thailand
  • life insurance under the law governing life insurance

Exemptions

Like the other applicable and payable taxes, there are activities of certain entities are exempted from SBT such as:

  •  business of the Bank of Thailand, the Government Savings Bank, the Government Housing Bank, and the Bank for Agriculture and Agricultural Cooperatives  
  • business of the Industrial Financial Corporation of Thailand .
  • business of a savings cooperative, only in respect of loans provided to its members or to another savings cooperative
  • business of a provident fund under the law governing provident funds  
  • business of the National Housing Authority, only in respect of sale or hire-purchase of an immovable property  
  • pawnbroking business of a ministry, sub-ministry, department, and a local government authority
  • any other business under section 91/2 as prescribed by a royal decree

Tax Base and Tax Rates in Thailand

1. Banking, Finance, and similar business

  • Tax Base
    Interest, discounts, service fees, other fees, profits from foreign exchange
  • Percentage of Tax Rate
    3%

2. business of finance, securities, and credit foncier

  • Tax Base
    Interest, discounts, service fees, other fees, profits from foreign exchange
  • Percentage of Tax Rate
    3%

3. Life Insurance

  • Tax Base
    Interest, service fees, and other fees
  • Percentage of Tax Rate
    2.5%

4. Pawn Brokerage

  • Tax Base
    Interest, fees, remuneration from selling overdue property
  • Percentage of Tax Rate
    2.5%

5. Businesses with regular transactions similar to commercial banks

  • Tax Base
    Interest, discounts, service fees, other fees, profits from foreign exchange
  • Percentage of Tax Rate
    3%

6. Real estate

  • Tax Base
    Gross receipts
  • Percentage of Tax Rate
    0.1%

7. sale of securities in a securities market

  • Tax Base
    Gross receipts
  • Percentage of Tax Rate
    0.1% (exempted)

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

SBT Registration

As advised by the Revenue Department of Thailand, any entity or person who is subject to SBT must register to be SBT registered person or entity (Form ภธ. 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 taxpayers have several branches or offices, registration applications must be submitted to the Area or District Revenue Office where the headquarter is situated.  

In the case of an operator who is a foreign resident, a person who is an agent of such operator shall be responsible for undertaking specific business tax registration for the operator who is a foreign resident.

The Filing of SBT

SBT taxable period is a calendar month. SBT return (Form ภธ. 40) must be filed on a monthly basis regardless of 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 the taxpayer has more than one place of business, each place of business must file its return and make the payment separately unless there is approval from the Director-General.

Summary

Juslaws & Consult also offer SBT filing and registration services and all related services. We have been in the industry for many years and we are confident of our ability to assist you with any taxation matters in Thailand.

We offer comprehensive action plan and tax planning services and we are sure of our skills to serve you. If you have any questions or inquiries, we urge you to contact us and we will be happy to assist and serve you.