Specific Taxes of Thailand

In Thailand, besides corporate and personal income taxes, other specific taxes imposed include:

• Value-Added Tax (VAT): A tax on the value added to goods and services at each stage of production or distribution. The standard VAT rate is 7%, with certain goods and services subject to a reduced rate of 0% or exempted altogether. Generates revenue for the government and promotes fairness by taxing consumption rather than income. VAT revenues contribute to funding government expenditures and public services.
• Specific Business Tax (SBT): Levied on certain types of businesses, such as financial institutions, pawnshops, and insurance companies. The tax rate varies depending on the type of business activity. Designed to ensure that certain businesses pay their fair share of taxes based on their specific activities. SBT revenues contribute to government revenues and public welfare programs.
• Excise Tax: Applied to specific goods, such as alcohol, tobacco, petroleum products, and certain luxury items. Excise tax rates vary depending on the type and quantity of the goods. Aims to discourage the consumption of harmful or luxury goods, promote public health, and generate revenue for the government.
• Stamp Duty: Imposed on certain documents, transactions, and instruments, such as contracts, leases, and share transfers. Stamp duty rates vary depending on the nature and value of the document. Provides revenue for the government and serves as a means of formalizing transactions and protecting legal rights.
• Property Tax: Levied on the ownership of land and buildings. The tax rate is based on the assessed value of the property. Supports local government services and infrastructure development, promotes efficient land use, and discourages speculative property investments.

Taxpayers Subject to Specific Taxes:

• VAT: Businesses engaged in the sale of goods or provision of services, including importers, wholesalers, retailers, and service providers.
• Specific Business Tax (SBT): Businesses engaged in specified activities subject to SBT, such as financial institutions, pawnshops, and insurance companies.
• Excise Tax: Manufacturers, importers, and sellers of excisable goods, such as alcohol, tobacco, and petroleum products.
• Stamp Duty: Parties involved in transactions or executing documents subject to stamp duty, such as buyers, sellers, lessors, and lessees.
• Property Tax: Property owners, including individuals, companies, and other legal entities.

The legal statutes and regulations governing specific taxes in Thailand include:

• Revenue Code of Thailand: Provides the legal basis for VAT, specific business tax, and excise tax.
• Excise Tax Act: Encompasses provisions related to excise tax rates, exemptions, and administrative procedures.
• Stamp Duty Act: Outlines the types of documents subject to stamp duty, applicable rates, and stamp duty exemptions.
• Local Land and Building Tax Act: Establishes the legal framework for property tax, including assessment procedures, tax rates, and exemptions.