Thailand’s Specific Business Tax (SBT) is levied on certain businesses for which it is difficult to determine a value addition. These businesses are considered as operating outside the value added tax (VAT) system.
Companies that are subject to SBT include those in the following sectors
- Banking and finance
- Life insurance
- Pawn brokerage
- Real Estate
- Others such as those engaged in re-purchasing agreements and factoring and those specified by the Royal Decree.
These businesses are not subject to VAT.
Activities of some organizations in the sectors listed above are exempted from SBT. The list of organizations includes the Bank for Agriculture and Agricultural Cooperatives, the Government Housing Bank, the Government Savings Bank and the Bank of Thailand.
Entities subject to SBT must register with their Area Revenue Office within 30 days of their first day of business operations.
SBT is computed on gross monthly receipts. Returns must be filed each month with the District Revenue Office regardless of whether the business had income for that month.