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SPECIFIC BUSINESS TAX

  Specific Business Tax 

        At the time of the introduction of VAT into Thailand, it was apparent that in certain businesses there were difficulties in defining their added value, such as the financial and real estate businesses. In order to avoid the complexities of defining the added value, certain businesses were excluded from the VATsystem, but continue to be subject to tax on the basic of gross receipts instead of VAT in the same manner as under the former Business Tax system.

        At present, the Specific Business Tax is imposed on various business transactions, such as banking, or similar business, finance, credit foncier and securities business, insurance, pawn brokerage, dealing in immovable property and sale of securities in the Stock Exchange of Thailand (SET).

       The Specific Tax rates range between 2.5 – 3.0 percent, as shown in Table 3. These rates are exclusive of surcharge tax for local government. The surcharge tax for local government amounted to 10 percent of the Specific Business Tax must also be added.

       The filing of the return and payment of the tax shall not be later than the 15th day of the month on gross receipts of the preceding month.
Business
Tax Base

Tax rate
(as percentage) of gross receipts
Banking or similar business,
finance, credit foncier and
securities business
 Interest, discounts, fees, service charge or profit before any deduction of expenses from the purchase or sales of negotiable instruments or instruments evidencing debts and gross profits before any deduction of expenses from
exchange or sale of currencies, issuance of negotiable instruments of outward remittance of money.
3.0
Life Insurance
 Interest, fees or service charge
2.5
Pawn Brokerage
 Interest, fee, and money, property, remuneration or any benefit of value received or receivable from the sale of overdue pawn property
2.5
Dealing in immovable property
 Receipts before any deduction of expenses.
3.0
Sale of securities in SET.
 Receipts before any deduction of expenses.
3.0
(currently is exempted)
Factoring
 Interest, discounts, service fees and other fees.
3.0


Note: for further information, please directly contact The Revenue Department at Tel. (662) 617-3000-9. 

Souce: Tax Policy Division, Fiscal Policy Office, Ministry of Finance of Thailand 

***This page is maintained by Office of Economic and Financial Affairs, Washington, DC who can be reached at econ-fin@ari.net. *** 

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