The Specific Business Tax (SBT) is a type of tax under Thai law, collected from certain types of businesses specifically defined by law. It replaces the abolished trade tax and is collected separately from the Value Added Tax (VAT).

However, some types of businesses are exempt from paying the Specific Business Tax, which are as follows:

• Operations of the Bank of Thailand, the Government Savings Bank, the Government Housing Bank, and the Bank for Agriculture and Agricultural Cooperatives.
• Operations of the Industrial Finance Corporation of Thailand.
• Operations of the Savings Cooperatives, specifically for lending to members or other Savings Cooperatives.
• Operations of the Pension Fund, as per Pension Fund law. 
• Operations of the National Housing Authority, specifically for selling or leasing real estate.
• Pawnbroking operations of ministries, departments, and local administrations.
• Securities selling operations, according to Thai Securities Market law.
• Operations of Small Industry Finance Corporation.
• Operations of Small Industry Credit Guarantee Corporation.
• Operations of the Export-Import Bank of Thailand.
• Operations of the Environment Fund, as per National Environment Quality Promotion and Conservation Act.
• Operations of the Financial Institution Reform Agency.
• Operations of Financial Institutions Asset Management Companies.
• Operations of Special Purpose Entities (SPEs), in relation to asset securitization, only in specific cases.
• Operations of companies, partnerships, or other entities in relation to asset securitization, only if it occurs as a result of transferring assets to SPEs or receiving such assets back from SPEs.
• Operations of Real Estate Investment Trusts, Real Estate Problem Solving Institution Funds, and Problem Solving Financial Institution Funds, established under the Securities and Exchange Act, specifically for ordinary commercial bank operations and for the sale of real estate for trade or profit.
• Operations of the Secondary Mortgage Corporation.
• Operations of the National Housing Authority, specifically for lending under the Urban Poor Development Project.
• Operations of Service Cooperatives.
• Operations of financial institutions, as per the Financial Institutions' Assets Management Act.
• The business of selling real estate is a form of trade or profit-making, due to:
  
  • The repossession of property from a sale by deposit, or the repossession of property from a sale by deposit through a property placement with the Property Placement Office within the contractually determined period or within the period stipulated by law.
  • The sale of property after repossession from a sale by deposit, where the combined period of property acquisition before the sale by deposit, the period during the sale by deposit, and the period after the sale by deposit, exceeds 5 years.
• The business of state enterprises, with regard to income received from selling real estate, resulting from the conversion of part or all of its capital into shares in the form of a limited company or a public company under the State Enterprise Capital Act.
• The business of the Community Organization Development Institute (Public Organization), particularly in conducting regular commercial banking operations.
• The business of the Student Loan Fund under the Student Loan Fund Act.
• The business of the Revolving Fund for Private School Development of the Office of the Private Education Commission.
• The business of the Civil Servant Pension Fund under the Civil Servant Pension Fund Act, effective from the date the Civil Servant Pension Fund Act comes into force.
• The business of real estate and claims mutual funds, established under the Securities and Exchange Act, particularly in conducting regular commercial banking operations and selling real estate for trade or profit.
• The business of the Office of Land Reform for Agriculture, particularly in conducting regular commercial banking operations and selling real estate for trade or profit, effective from January 1, 1992, onwards.
• The business of the Islamic Bank of Thailand, specifically the transfer of property rights to transferees due to the leasing of real estate.
• The business of the Small and Medium Enterprise Development Bank of Thailand under the Small and Medium Enterprise Development Bank of Thailand Act, effective from December 20, 2002, onwards.
• The business of selling forward contracts, in accordance with the Law on Agricultural Commodity Forward Trading, in the Agricultural Commodity Futures Market of Thailand, starting from 28th May, 2004.
• The business of selling futures contracts, under the Law on Futures Trading, in the Futures Trading Center, starting from the opening day of futures trading in the Futures Trading Center.
• The business of the Office of Economic Cooperation with Neighboring Countries (International Organization), specifically lending to governments, state enterprises, or financial institutions of neighboring countries, under the 2005 Royal Decree establishing the Office of Economic Cooperation with Neighboring Countries (International Organization).
• The business of the Deposit Protection Institute, according to the Deposit Protection Institute Act.
• The transfer of real estate resulting from the segregation of life insurance and non-life insurance operations, under paragraph two of Section 127 of the 1992 Life Insurance Act, or under paragraph two of Section 121 of the 1992 Non-Life Insurance Act.
• The sale of real estate by the Asset Management Corporation or Limited Company, which is a financial institution established under the 1997 Royal Decree establishing the Asset Management Corporation, for the purpose of managing real estate loans, with the approval of the Bank of Thailand.
• The sale of real estate by the business operator to the aforementioned Corporation or Limited Company in item #36.

Data updated on November 16, 2020

Source: The Revenue Department, 90 Phaholyothin 7, Phayathai, Phayathai, Bangkok 10400

Tel. +66 2272 8000

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