20

Mar 2014

Category: TAX
Written by Super User
655

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.

Person 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:

(1)    banking under the law governing commercial  banking or any other specific law
(2)    business of finance, securities and credit fancier under the law governing operation of the business of finance, securities and credit fancier
(3)    life insurance under the law governing life insurance
(4)    pawn braking under the law governing pawnshops
(5)    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;
(6)    sale of an 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
(7)    sale of securities in a securities market under the law governing securities exchange ofThailand
(8)    any other business as prescribed by a royal decree.

Exemptions
Activities of certain entities are exempted from SBT such as:
 

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

Tax base and tax rates
The tax base for a business in accordance  with  the provisions of this Chapter  shall be the following gross receipts received or receivable from the business carried on by a person liable to tax
 

Business

TaxBase

TaxRate

(%)

1.Banking,Finance andsimilarbusiness

Interest,discounts,service fees,otherfees,profits fromforeignexchange

3.0

2.businessoffinance,securitiesandcredit foncier

Interest,discounts,service fees,otherfees,profits fromforeignexchange

3.0

3.LifeInsurance

Interest,servicefees andotherfees

2.5

4.PawnBrokerage

Interest,fees,remunerationfrom sellingoverdue property

2.5

5.businesswith regulartransactions similarto commercialbanks

Interest,discounts,servicefees,otherfees,profits fromforeignexchange

3.0

6.Realestate

Grossreceipts

0.1

7.saleofsecuritiesinasecuritiesmarket

Grossreceipts

0.1(exempted)

Remark:Local tax at therate of 10% is imposed on topofSBT.

 
SBT registration
Any entity or person who  is subject  to SBT must register to be SBT registered  person  or entity (Form  t8lt8l.
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 headquarters 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 in undertaking specific business tax registration for the operator who is a foreign resident.

File a tax return and payment
SBT taxable period is a calendar month. SBT return (Form. 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.

 


 Source:www.rd.go.th, July2013

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