Special business tax

          Special business tax, or stock sales tax, is a specific business tax on the sale of securities that has been exempt from levy for 30 years.

          In a later decision, the Cabinet decided to revoke the specific business tax exemption on the selling of securities on the stock market (share sales tax), which is scheduled to take effect on May 1, 2023, and is separated into the following two sections:

          Period 1: Charged at a rate of 0.05% (0.055% when including local taxes) from the effective date of the Royal Decree until December 31, 2023.

          Period 2 : Charged at a rate of 0.1% (0.11% when combined with local taxes) from January 1, 2024 onwards.

          For sellers who are still exempt from specific business tax for selling securities on the stock exchange to

          1. Market Maker registered with the SET only sells securities that the person has registered as a market maker of that securities

          2. Social Security Office

          3. Provident Fund

          4. Government Pension Fund

          5. Welfare fund under the law on private schools

          6. Retirement Mutual Fund

          7. National Savings Fund

          8. Mutual funds established under the Securities and Exchange Act for the sale of investment units in mutual funds only to the Social Security Office or the funds under Clause 3-7

          According to tax collection data abroad, it is found that both sales and purchases are taxed as follows:

          Indonesia collects sales tax of 0.10%

          Vietnam collects sales tax of 0.10%

          China collects a sales tax of 0.10%

          Hong Kong collects sales and trading tax of 0.13%

          Malaysia collects sales and purchases tax of 0.15% but not more than RM1000

          South Korea collects sales tax of 0.23%

          Taiwan collects 0.10% tax on the sale of shares or warrants, and 0.10% on the sale of bonds and other securities

          The Philippines collects sales tax 0.60% 

          The UK imposes a 0.50% purchase tax and a Capital Gain Tax

          Even though the stock sales tax raises concerns because it may influence foreign investment decisions due to higher fees than domestic investors, it is believed to be at a lower level or comparable to the attractiveness of the Thai stock market and still has an advantage and is more attractive to attract investment if tax rates collected by Thailand and foreign countries are taken into account. Therefore, from now on it is time to adjust and prepare.

Source: The Revenue Department
Tel: 1161