Specific Business Tax (SBT) is an indirect tax imposed on certain types of businesses for which it is difficult to determine the value added tax. Such businesses are excluded from the VAT system. The SBT will be levied on gross revenue.
Any person or legal entity who is subject to SBT must register within 30 days of its first day of operation and the application must be submitted at the Area Revenue (Branch) Office. If the taxpayer has multiple branches or offices, he must register with the Office located in the same area as the headquarters.
Tax Rates
The tax rate differs based on the nature of the business conducted, as following:
• Commercial banking, finance and similar business: 3% of interest, discounts, service fees, and profits from the exchange of foreign currencies
• Business of finance, securities and credit foncier: 3% of interest, discounts, service fees, and profits from the exchange of foreign currencies
• Life insurance: 2.5% of interest, service fees, and other fees
• Pawn brokerage: 2.5% of interest, fees, and remuneration from selling overdue property
• Businesses with regular transactions similar to commercial banks: 3% of interest, discounts, service fees, and profits from the exchange of foreign currencies
• Sales of immovable property or real estate in a commercial or profitable manner: 0.1% of gross receipts
• Factoring: 3% of interest, discounts, service fees and others fees
• Sale of securities in a securities market: 0.1% of gross receipts or exempted on the Thailand stock exchange
The above rates do not include the municipal tax, which is charged at the rate of 10% on the amount of SBT payable.
SBT Returns and Payment
SBT returns, even nil, must be filled monthly. The form and payment must be submitted to the District Revenue Office within 15 days of the following month.
The taxpayer, who has more than one place of business, must file a return and make a payment for each place of business, unless the Director-General of the Revenue Department deems it otherwise.
Legal Consequences
The penalty for failure to register for SBT or to file monthly SBT returns is twice of the tax due. The penalty for incorrect or underpayment of tax is equal with the tax underpaid. A 1.5% per month surcharge of the tax underpaid is applied, up to the amount of additional tax that was owed.