Thailand Specific Business Tax — 5-Category Comparison 2026 (Banking 3.3% · Life 2.75% · Pawn 2.75% · Real Estate < 5yr 3.3% · Repo 0.11%)

SBT (Specific Business Tax) is an indirect tax under Thai Revenue Code Sec.91-91/21 imposed on 5 specific business categories that are exempt from VAT: (1) Banking/Finance/Fonciere Credit (2) Life Insurance (3) Pawnshop (4) Real Estate sold within 5 years (5) Repo/Securities Lending. Key differences from VAT: (a) VAT is on 'value added' with Input Credit → SBT is on 'gross receipts' with no Input Credit · (b) VAT files PP.30 → SBT files PT.40 (Phor.Thor.40) · (c) SBT adds 10% Local Tax on top · (d) SBT has no threshold — once you enter the category you pay from day one. NYC Legal casework: 89 filings + 24 disputes (2021-2025).

🎯 Effective rates (10% Local Tax already included per Sec.91/10): (1) 🏦 Banking/Finance = 3.3% of gross receipts (Interest + Fee + FX) · (2) 🛡️ Life Insurance = 2.75% of gross premium · (3) 💍 Pawnshop = 2.75% of interest + auction proceeds · (4) 🏘️ Real Estate < 5 years = 3.3% of sale/appraisal price (whichever higher) · (5) 📈 Repo/SBL = 0.11% of yield (lowest — 30x lower than Banking SBT). All computed on gross receipts, no cost deduction. Local Tax 10% is allocated to the municipality where the business is located.

No — 5 exemptions apply even under 5 years: (1) 🏠 Residential use + registered in tabien baan (house registration) ≥ 1 year before transfer (most important — switches from 3.3% SBT to 0.5% Stamp Duty, saving 2.8% of sale price) · (2) Inheritance · (3) Gift from ascendants (parents/grandparents) · (4) Government expropriation · (5) Land swap with government agency. Over 5 years = no SBT (still WHT + 0.5% Stamp Duty). Example: selling THB 10M condo held 3 years without residence = SBT 330k · with residence + tabien baan 1 year = only Stamp Duty 50k. NYC Legal structure advisory 45k is highly cost-effective.

Banking SBT is on 'gross receipts before deducting expenses' including: (a) Interest Income on loans · (b) Fee Income (ATM, credit card, wire transfer) · (c) FX gain (realized + unrealized) · (d) Bond trading profit. Collected before deducting Cost of Fund. Differs from CIT 20% which is on 'net profit' after cost. Example: Bank with Interest 1,000M + Cost of Fund 600M + Fee 200M → SBT 3.3% × 1,200M = 39.6M · CIT 20% × 400M (net) = 80M · total tax 119.6M. Non-banking subsidiaries (IT · consulting) should register separately under VAT to save 3.3% SBT.

🚨 Legal grey zone — Pawnshop Act 1962 requires physical shop with license. Online Pawn (crypto-collateralized lending · NFT pawn) is likely treated by Revenue Department as 'business akin to banking' = 3.3% SBT (not 2.75%) + requires BoT/SEC license. Operators lending through Facebook/Line without registration face: (a) Prison ≤ 2 years + fine 100k under Anti-Usury Act · (b) Retroactive SBT 5 years + 100% penalty + 1.5%/month surcharge · (c) AMLO asset forfeiture. NYC Legal recommends setting up as Nano Finance License (BoT) or P2P Lending License (SEC) instead.

🌏 Yes — SBT 3.3% applies to all sellers regardless of nationality (no nationality exemption). Withheld at Land Department on transfer day. 3.3% × sale/appraisal price (whichever higher). Foreign Buyer example: bought condo THB 15M in 2022, sold 20M in 2025 (held 3 years) → SBT 3.3% × 20M = 660k · plus WHT (progressive on gain, roughly 5-15%). Foreigners avoiding SBT: (1) Actually reside + obtain Yellow Book (Tor.Ror.13) ≥ 1 year (2) Hold > 5 years (3) Transfer to heirs as inheritance. Apostille 14 Feb 2026 helps certify Tax Residency Certificate for Foreign Tax Credit in home country.

Must split clearly: (1) Insurance Protection (Mortality Charge + Rider) = 2.75% SBT · (2) Investment Component (invested into fund) = no SBT (enters mutual fund system under SEC). Revenue Department accepts split only if: (a) Policy clearly separates components · (b) OIC (Insurance Regulator) reporting separates · (c) Investment portion immediately transferred to sub-fund. If unclear split, RD treats entire premium as SBT 2.75%. Example: ULIP Premium 100k/year · Insurance Component 15k · Investment 85k → SBT on 15k × 2.75% = 412 THB (vs 2,750 if unsplit). NYC Legal product structure review saves insurers THB 40-70M/year.

🔍 Depends on structure: (1) Repo/Reverse Repo with GMRA/ICMA Master Agreement + TSD collateral transfer = 0.11% (Royal Decree 469/2008) · (2) SBL with ISLA Master Agreement + TSD intermediation = 0.11% · (3) Unsecured Interbank Lending (Call Money · Term Deposit) = 3.3% (standard banking rate) · (4) FX Swap Line = 3.3% (banking) · (5) IRS speculative = 3.3%; hedging with proven substance may be excluded. Investment arms should structure with standard Repo Master Agreement to save 30× (from 3.3% to 0.11%). NYC Legal Master Agreement review + restructure THB 180-450k/year.

10% Local Tax on SBT (Municipal Surcharge) per Sec.91/10. Allocation: (1) 10% of SBT paid additionally to Revenue Department (not directly to municipality) · (2) Revenue then transfers to local government where business is located. PT.40 filing: (a) Enter SBT amount · (b) Enter Local Tax = SBT × 10% · (c) Total = SBT + Local Tax · (d) Multi-branch businesses must file separately per municipality. Example: SBT 100k → Local Tax 10k → total 110k. e-Filing PT.40 computes Local Tax automatically. Deadline 15th (paper) / 23rd (e-Filing).

🎯 5 Apostille use cases for SBT: (1) SBT Certificate (Phor.Thor.20) for foreign investor — 5-10 days (previously 4-6 weeks) · (2) Land transfer docs + Chanote for home-country tax filings · (3) Life insurance contract Apostilled for cross-border claims · (4) Repo Master Agreement notary + Apostille for cross-border documentation · (5) Tax Residency Cert for Foreign Tax Credit. NYC Legal end-to-end SBT services: (a) SBT Registration + Monthly PT.40 filing THB 8,500-45,000/month · (b) Real Estate SBT Structure Advisory (saving 2.8% of sale price) THB 25,000-85,000 · (c) Banking/Insurance SBT Compliance + Local Tax Multi-Branch THB 180,000-1,200,000/year · (d) Pawnshop License + SBT setup THB 45,000 · (e) SBT Audit Defense + Refund (Kor.10) THB 320,000-1,500,000. Casework 89 filings + 24 disputes + 91% success rate. Call +66-93-296-3639 · Line @nyclegal · free 30-min consultation.