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Other Taxes

4.          Other Taxes

 

Note: For additional information about other taxes, please visit the website of the Revenue Department of Thailand (http://www.rd.go.th/publish/16399.0.html).

 

4.1        Specific Business Tax (SBT) (Source: http://www.rd.go.th/publish/6042.0.html, March 13, 2014)

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 foncier under the law governing operation of the business of finance, securities and credit foncier;

3.     life insurance under the law governing life insurance;

4.     pawn broking 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 of Thailand;

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 of Thailand, the Government Savings Bank, the Government Housing Bank, and the Bank for Agriculture and Agricultural Cooperatives

2.     business of the Industrial Financial Corporation of Thailand

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 broking 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

Tax Base

Tax Rate

(%)

1. Banking, Finance and similar business

Interest, discounts, service fees, other fees, profits from foreign exchange

3.0

2. Business of finance, securities and credit foncier

Interest, discounts, service fees, other fees, profits from foreign exchange

3.0

3. Life Insurance

Interest, service fees and other fees

2.5

4. Pawn Brokerage

Interest, fees, remuneration from selling overdue property

2.5

5. Business with regular transactions similar to commercial banks

Interest, discounts, service fees, other fees, profits from foreign exchange

3.0

6. Real estate

Gross receipts

0.1

7. Sale of securities in a securities market

Gross receipts

0.1

(exempted)

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

 

SBT registration

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 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 ภธ. 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.

 

4.2        Stamp Duty (Source: http://www.rd.go.th/publish/21986.0.html, March 13, 2014)

4.2.1      Persons liable to stamp duty

4.2.1.1   Only instruments listed in the stamp duty schedule are subject to the stamp duty and the persons liable to pay stamp duty are those listed in column 3 of the schedule. They are, for example, the persons executing the instrument, the holders of the instrument or the beneficiary.

 

4.2.1.2   If an instrument liable to duty is executed outside of Thailand, the first holder of the instrument in Thailand shall pay the duty by stamping at the full amount and canceling within 30 days from the date of receiving the instrument. If he does not comply as such, the instrument shall not be deemed duty stamped.

 

If he does not comply with the provisions of Paragraph 1, any holder of the instrument shall pay the duty by stamping at the full amount and canceling, and then he shall be able to submit the instrument for collection, endorsement, transfer or claiming of benefit.

 

Any holder who acquires possession of the instrument in accordance with this Section before the expiration of the time limit specified in Paragraph 1 may pay the duty by stamping at the full amount and canceling, and he has the right of recourse against the previous holders.

 

4.2.1.3   If a bill submitted for payment is not duty stamped, the recipient of the bill may pay the duty by stamping at the full amount and canceling, and may either have the right of recourse against the person liable to duty or deduct the amount of duty from the payment due.

 

4.2.2      Instruments liable to stamp duty

The instruments liable to stamp duty include, inter alia, transfers of land, a lease, stock transfers, debentures, mortgages, life assurance policies, annuities, power of attorney, promissory notes, letters of credit, travelers cheques.

 

4.2.3      How to duty stamped

"Duty stamped" means

1.     in the case of an adhesive stamp, payment of duty is made by affixing a stamp on the paper, before or immediately when an instrument is executed, in an amount not less than the duty payable, and canceling such stamp; or

2.     in the case of an impressed stamp, payment of duty is made by using a paper with an impressed stamp in an amount not less than the duty payable and canceling such stamp, or by submitting an instrument to an official to impress the stamp and paying an amount not less than the duty payable and canceling such stamp; or

3.     in the case of payment by cash, payment of duty is made in cash in an amount not less than the duty payable in accordance with the provisions of this Chapter or in accordance with a regulation prescribed by the Director-General with the Minister’s approval.

 

In stamping duty as prescribed under (1) and (2), the Director-General shall have the power to order the compliance in accordance with (3) instead

 

4.2.4      Rate of stamp duty

Rates of stamp duty are given in the schedule attached to the Chapter VI of Title II of the Revenue Code. The rates of duty range from one Baht to 200 Baht. A sample of stamp duty rates on some selected instrument is as follows:

 

Nature of Instrument/Transaction

Stamp Duty

1.     Rental of land, building, other construction or floating house

For every 1,000 Baht or fraction thereof of the rent or key money or both for the entire lease period

1 Baht

2.     Transfer of share, debenture, bond and certificate of debt issued by any company, association, body of persons or organization.

For every 1,000 Baht or fraction thereof of the paid-up value of shares, or of the nominal value of the instrument, whichever is greater

1 Baht

3.     Hire-purchase of property.

For every 1,000 baht or fraction thereof of the total value

1 Baht

4.     Hire of work

For every 1,000 Baht or fraction thereof of the remuneration prescribed

1 Baht

5.     Loan of money or agreement for bank overdraft

(a)   For every 2,000 Baht or fraction thereof of the total amount of loan or the amount of bank overdraft agreed upon

(b)   Duty on the instrument of this nature calculating into an amount exceeding 10,000 Baht shall be payable in the amount of 10,000 Baht

1 Baht

6.     Insurance policy

(a)     Insurance policy against loss

For every 250 baht or fraction thereof of the insurance premium

(b)     Life insurance policy

For every 2,000 baht or fraction thereof of the amount insured

(c)     Any other insurance policy

For every 2,000 baht or fraction thereof of the amount insured

(d)     Annuity policy

For every 2,000 baht or fraction thereof of the principal amount, or, if there is no principal amount, for every 2,000 baht or fraction thereof of 33 1/3 times the annual income

(e)     Insurance policy where reinsurance is made by an insurer to another person

(f)      Renewal of insurance policy
 

 

1 Baht

 

1 Baht

 

1 Baht

 

1 Baht

 

 

1 Baht

1 Baht

(Half the rate for the original policy)

7.     Authorization letter i.e., a letter appointing an agent, which is not in the form of instrument or contract including a letter appointing arbitrators:

(a)     authorizing one or more persons to perform an act once only;

(b)     authorizing one or more persons to jointly perform acts more than once;

(c)     authorizing to perform acts more than once by authorizing several persons to perform acts separately; the instrument will be charged on the basis of each individual who is authorized.

 

 

10 Baht

30 Baht

30 Baht

8.     Proxy letter for voting at a meeting of a company

(a)     Authorized for one meeting only

(b)     Authorized for more than one meeting

 

20 Baht

100 Baht

9.      

(1)    Bill of exchange or similar instrument used like bill of exchange for each bill or instrument

(2)    Promissory note or similar instrument used like promissory note for each note or instrument

 

3 Baht

 

3 Baht

10.  Bill of lading

2 Baht

11.   

(1)    Share or debenture certificate, or certificate of debt issued by any company,  association, body of persons or organization

(2)    Bond of any government sold in Thailand

For every 100 baht or fraction thereof

 

5 Baht

 

1 Baht

12.  Cheque or any written order used in lieu of cheque for each instrument

3 Baht

13.  Receipt for interest bearing fixed deposit in a bank

5 Baht

14.  Letter of credit

(a)    Issued in Thailand

·        For value less than 10,000 Baht

·        For value of 10,000 Baht or over

(b)   Issued abroad and payable in Thailand for each payment

 

 

20 Baht

30 Baht

20 Baht


15.  Traveler’s cheque

(a)     For each cheque issued in Thailand

(b)     For each cheque issued abroad but payable in Thailand

 

3 Baht

3 Baht

16.  Each goods’ receipt

issued in connection with carriage of goods by waterway, land and air, namely, an instrument signed by an official or cargo master of a transport vehicle which carries goods as specified in that receipt upon issuing the bill of lading

1 Baht

17.  Guarantee

(a)     For an unlimited amount of money

(b)     For an amount exceeding 1,000 baht

(c)     For an amount exceeding1,000 baht but not exceeding 10,000 baht

(d)     For an amount exceeding 10,000 baht

 

10 Baht

1 Baht

5 Baht

10 Baht

18.  Pawn broking

(a)     For every 2,000 baht or fraction thereof of the debt

(b)     If the pawn broking does not limit the amount of debt

 

1 Baht

1 Baht

19.  Warehouse receipt

1 Baht

20.  Delivery order

1 Baht

21.  Agency

(a)     specific authorization

(b)     general authorization

 

10 Baht

30 Baht

22.  Decision given by an arbitrator

(a)     In the case where the dispute is concerned with the amount of money or price for every 1,000 baht or fraction thereof

(b)     In the case where no amount of money or price is mentioned

 

1 Baht

 

10 Baht

23.  Duplicate or counterfoil of an instrument,

namely, an instrument having the same contents as the original document or contract and signed by the person executing the instrument in the same manner as the original

(a)     If the duty payable for the original does not exceed 5 baht

(b)     If the duty exceeds 5 baht

 

 

 

1 Baht

5 Baht

24.  Memorandum of association of a limited company submitted to the registrar.

200 Baht

25.  Articles of association of a limited company submitted to the registrar.

200 Baht

26.  New articles of association, copy of amended memorandum of association or articles of association submitted to the registrar.

50 Baht

27.  Partnership contract

(a)     Contract on the establishment of a partnership

(b)     Amendment of the contract on the establishment of a partnership

 

100 Baht
50 Baht

28.  Receipt only as specified below:

(a)     Receipt issued for government lottery prizes;

(b)     Receipt issued in connection with a transfer of, or creation of any right in, an immovable property, if the juristic act which gives rise to such receipt is registered under the law;

(c)     Receipt issued in connection with a sale, sale with right of redemption, hire-purchase or transfer of ownership in a vehicle, only if the vehicle is registered under the law governing such vehicle. If the receipt under (a) (b) (c) has an amount of 200 Baht or more: for every 200 Baht or fraction thereof

1 Baht

 

 

 

 

 

 

 

 

4.3        Petroleum Income Tax (Source: http://www.rd.go.th/publish/38686.0.html, March 13, 2014)

Petroleum Income Tax (PT) is a direct tax, levied annually (for each accounting period of 12 months duration) on net profit of a “petroleum taxpayer”, who is carrying out the business of petroleum exploration and production. It is also levied on the disposal of profits outside of Thailand. The rules and regulations for Petroleum Income Tax are covered under Petroleum Income Tax Act and other related law. The rates, penalties, surcharge, etc. are different from that of Corporate Income tax.

 

4.3.1      Tax Base

The term ‘petroleum taxpayer’ covers anybody who:

(1)     holds a concession under petroleum law or has a joint interest in it; or

(2)     purchases crude oil produced by any concessionaire, all of which is intended for export.

 

There are two important amendments to the Petroleum Income Tax Act (in the years B.E. 2522 and B.E. 2532) creating three different versions. Each Petroleum Taxpayer is covered under one or more of the three versions (referred as status of taxpayer). Filing requirement is that taxpayer should submit one return per TIN per period per status. In case a taxpayer has to file returns under more than one status, he has to do so treating each status as a separate company. (in matters of allowances, adjusting of carried forward loss, etc.)

 

The important differences in tax calculation/remittance between the three versions of the Act are as follows:

Act 2514 (status 1)        Only annual return. No need for half year return. Interest not allowed as expense. Royalty allowed as tax credit. No levy of special remuneratory benefit tax. High tax rate of 50%

Act 2522 (status 2)        Only annual return. No need for half year return. Interest allowed as expense. (but a high withholding tax of 50% on interest paid is levied. Royalty allowed as expense. No levy of special remuneratory benefit tax. Low tax rate of 35% High profit remittance tax of 23.08%

Act 2532 (status 3)        Annual and half yearly returns required. Interest not allowed as expense. Royalty allowed as expense. Additional levy of special remuneratory benefit tax. High tax rate of 50%

 

All Petroleum Taxpayers are required to pay withholding tax @50% on profits on transfers (transfer proceeds less loss carried forward) when petroleum property or right is transferred and if the total amount of such income is not definitely determinable.

While calculating net profit, following items are included as revenue:

(1)     Gross Income from sale of petroleum;

(2)     Value of petroleum disposed of;

(3)     Value of petroleum delivered as payment of royalty in kind;

(4)     Gross income arising from a transfer of any property or right related to petroleum business, if the total amount of such gross income is definitely determinable;

(5)     Any other income arising from conducting petroleum business.

 

4.3.2      Tax Rates

Tax rate is linked to the status of taxpayer. At present, the tax rates are as follows:

(a)     Petroleum Income Tax Rates

Act B.E 2514 (status 1)                   50%

Act B.E 2522 (status 2)                   35%

Act B.E 2532 (status 3)                   50%

Disposal of profits                          23.08%

 

(b)     Withholding Tax Rates

For transfer of petroleum

Property or rights                           50%

(Specifically for income gained from transfer which may be able to specify certain total amount)

Payment of interest                        50%

Payment of dividend                       23.08%

Payment of interest                        15%

Payments for other services             Depends on service

 

4.3.3      Tax Payment

Petroleum companies are required to submit their annual return within five months from the date of closing of their accounting period. Payment of tax has to be made at the time of filing of the return.

 

Return for profit remittance has to be submitted within seven days from the date of remittance.

 

In addition to the annual tax payment, petroleum companies falling under status 3 are required to submit half year return (based on estimate of profit. Under this system, the petroleum company has to estimate its annual profit and pay half of the amount of tax calculated on such basis within two months after the end of first six months of its accounting period. The estimated tax payment is creditable against the annual tax liabilities of the company.

 

4.4        Excise Tax

Excise tax is levied on selected goods (mainly luxury goods) such as petroleum products, tobacco, liquor, beer, soft drinks, crystal glasses, perfume and cosmetic products, air conditioners not over 72,000 BTU and passenger cars with ten seats or less.

 

Excise tax is calculated as ad valorem or at a specific rate, whichever is greater. All goods subject to excise tax remain subject to VAT. The excise tax is collected by the Excise Department and is usually imposed at the time of delivery of the goods from factories.

 

For current information about excise tax on specific products, please visit the website of the Excise Department of Thailand (http://excise-english.excise.go.th/PEOPLE/KNOWLEDGE/GOODS_KNOW/index.htm).

 

Page Updated: November 2015