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:

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

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:

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