Special business tax in Thailand

At this point, when it comes to taxes, Thailand also has its tax system. Above all, it is well established and precise so that every entrepreneur and businessman knows exactly how much they have to pay. In short, if you are a foreigner willing to open a business in Pattaya, Thailand, you need to learn more about the tax system. Also, about the special business tax in Thailand. It is one of the most important pieces of information you need to know about before proceeding further. 

Are you lost in all the information regarding the tax system in Thailand? For that reason, J&E Concierge Pattaya comes to your rescue and provides you with all the information essential to your and your business’s well-being! 

Summing up, the better you understand the special business tax in Thailand, the easier it will be to have a clear perspective on your future business. 

A guideline for special business tax in Thailand

At first, you have to know what exactly is the special business tax in Thailand. That is to say, it is a tax that only applies to certain businesses in Thailand. In short, the government adopted it as a specific business tax in 1992.

For that reason, this guideline helps you understand how the special business tax works, who is liable, and who is exempt. It is essential to know relevant information related to taxes before proceeding any further with business registration. Although Thailand is well known for its friendliness towards new business ideas, it is always safer to collect all the relevant information beforehand. 

Together with information about non-immigrant visa B for businesses, documents for business registration, and business licenses, this guideline completes the series of business information relevant to all new entrepreneurs in Thailand. 

What you should know?

At this point, in Thailand, the special business tax is an indirect tax that applies only to businesses excluded from value-added tax (VAT). All businesses that operate in Thailand and have a turnover that exceeds 1.8 million THB have to pay VAT. However, if you open a small business in Thailand and you do not exceed this amount then your business falls under the special business tax.

What businesses are subject to this type of tax?

Moreover, some businesses are subject to this specific tax, while others are exempt. Further on we will discuss each category so that you will have a clear view of this. 

So, the types of businesses that are subject to those taxes:

• banking companies that follow the law governing the commercial banking
• financial and crediting companies
• life insurance companies
• pawn and broking companies
• companies operating money exchange transactions and transfer of money
• sale of property

These are the types of organizations or activities that are subject to the special tax. 

What business types are not subject to it?

Now that we have discussed businesses subject to the special business tax in Thailand, we will also present to you the businesses and activities that are exempted from it. 

Although they may have similar activities to the ones presented before, they are larger organizations, with national heritage.

• The Bank of Thailand
• The Government Savings Bank
• The Government Housing Bank
• The Bank of Agriculture
• Industrial Financial Corporation of Thailand
• Pawn activities of local government 

All these mentioned above are national institutions directly subject to the government of Thailand. 

How do you register your business for the special business tax in Thailand?

Every business that is subject to this tax must register and submit a specific form within 30 days from the start of the business activity. All documents have to be submitted at the Area Revenue Office in Bangkok or at the District Revenue Office across Thailand. The special business tax in Thailand has to be paid by the 15th of each month.

To keep good track of your financial statements, you have to hire a bookkeeping specialist and accountant. If you need help finding one, J&E Concierge can assist you through this process. The financial audit of your business is obligatory. You have to keep track of all expenses and income. 

J&E Concierge Pattaya helps you apply for 

Are you ready to start your new business in Thailand? Do not neglect the tax system and the regimentations. Contact J&E Concierge Pattaya and we can help you apply for special business tax in Thailand if your business is subject to such a tax. The better you keep track of your taxes and finances, the safer you will be on the business market!