ASEAN excise tax

The diagram showing structure of authority within the Department.

• Owner of bonded warehouse in accordance with Section 42 of the Excise Tax Act B.E. 2527 (1984)
• Industrial operator or service operator whom is newly established after a merger, or after the said industrial operator or service operator accepted the transfer of an industrial operator in accordance with Section 57 of the Excise Tax Act B.E. 2527 (1984)
• Person with privileges in accordance with Section 102 (3) of the Excise Tax Act B.E. 2527 (1984) for goods that the industrial operator is entitled to accept the return of or be exempted from tax in accordance with Section 12 paragraph 2
• Person entitled to an exemption from or reduction of tax rate for imported goods in accordance with Section 11 paragraph 2 and 3 of the Excise Tax Act B.E. 2527 (1984)
• Transferor and transferee of privileges in accordance with Section 102(3) of the Excise Tax Act B.E. 2527 that the industrial operator is entitled to accept the return of or be exempted from tax in accordance with Section 12 paragraph 2(2)
• Transferor and transferee of imported goods that is entitled to an exemption from or reduction of tax rate in accordance with Section 11 paragraph 2(2) and (3) of the Excise Tax Act B.E. 2527 (1984)
• Executor or heir who inherit imported goods entitled to an exemption from or reduction of tax rate in accordance with Section 11 paragraph 2(4) of the Excise Tax Act B.E. 2527 (1984)
• Executor, heir or inheritance possessor, curator or defender in accordance with Section 56 of the Excise Tax Act B.E. 2527 (1984)
• Liquidator and director or manager who occupied a position prior to the date that the business ceases operations in the event that the industrial operator or service operator is a juristic person and ceases operations along with liquidation in accordance with Section 58 of the Excise Tax Act
• Automobile modifier in accordance with Section 144(5) of the Excise Tax Act B.E. 2527 (1984)
• Person who committed an offence with regards to possession, sale and possession for sale in accordance with Section 161 and 162 of the Excise Tax Act B.E. 2527 (1984)

• Oil and oil products
• Beverages
• Electrical appliances
• Crystal glass and other glass crystals
• Automobiles (passenger cars, pick-ups and buses with seats not exceeding 10 people)
• Yachts and water vehicles for the purpose of recreation
• Perfumes, perfume essences and fragrant oils
• Carpets and other textiles (made of animal fur only)
• Motorcycles
• Batteries
• Night clubs and discotheques
• Shower or steam facilities
• Horsing racing courses
• Golf courses
• Telecommunications businesses (currently tax exempt)
• Lottery (currently tax exempt)
• Liquor
• Tobacco
• Cards

• Tax Base in Accordance with Quantity. Excise tax calculation by quantity can be calculated by the formula below:

  Excise Tax = Quantity of Goods × Excise Tax Rate

  
  
• Tax Base in Accordance with Value. Excisetax calculation by value can be calculated by the formula below:
  
  
  
  • Goods Produced in the Kingdom In calculating excise tax, “value” refers to the selling price at the factory, which is inclusive of excise tax that must be paid (Excise Tax Act B.E. 2527 (1984) Section 8(1))

    Excise Tax Base = Price at the Factory

    
    
  • Goods Imported into the Kingdom Excise tax calculation for import goods uses tax base calculated form CIF price of goods and duty

    Excise Tax Base = CIF of Goods + Taxes

    
    
  • Services The base for calculating the excise tax of service places is the income of such place. For instance, the income of a horse-racing course is the entrance fees and income withheld from horse-racing gamblers. On the other hand, the income of a golf course is the membership fees and service fees of the golf course.

    Excise Tax Base = Income of Service Place

  • Automobile Modification In case of car modification, base for excise tax calculation is value of a car from modification, which is labor costs and parts and materials including costs to find parts and materials, but must not less than the minimum criteria as prescribed by director.

    Excise Tax Base = Value from Modification (refers to the total sum of wages and costs of materials and equipment or painting costs, which must not be lower than the minimum standard as prescribed by the Director-General)

• Goods Produced in the Kingdom  Excise tax collection in domestic goods is divided toa liability of pay tax in two cases, which are goods in manufactory and goods in bonded warehouse.
  
  
  • Goods in Factories
           Excise tax burdens are incurred when taxpayers transport goods from the factory or bring goods for use in the factory, unless the goods are transported from the factory for the purpose of storage in a bonded warehouse (in accordance with the Law on Customs, Tax-Free Zones or Export Processing Zones). Taxpayers must submit a tax list form and pay the relevant tax prior to incurring tax liabilities.
  • Goods in Bonded Warehouses (in accordance with the Law on Customs, Tax-Free Zones or Export Processing Zones)
           Excise tax burdens are incurred when taxpayers transport goods from the bonded warehouse, unless the goods are transported from the bonded warehouse for the purpose of returning such goods for storage in an factory or in another bonded warehouse (in accordance with the Law on Customs, Tax-Free Zones or Export Processing Zones). Taxpayers must submit a tax list form and pay the relevant tax prior to incurring tax liabilities.
           In the case that VAT liabilities arise, whether wholly or partially, prior to the transportation of goods from the factory or bonded warehouse, excise tax burdens are incurred by taxpayers at the same time with VAT. Taxpayers must submit a tax list form and pay the relevant tax within the 15th of the following month from the month of incurring tax liabilities or prior to the transportation of such goods, whichever occurs first.

• Goods Imported into the Kingdom Taxpayers incur excise tax burdens at the same time with customs duties in accordance with the Law on Customs, unless the goods are imported for the purpose of storage in a bonded warehouse (in accordance with the Law on Customs, Tax-Free Zones or Export Processing Zones). Taxpayers must incur such burdens once the goods are transported from the bonded warehouse (in accordance with the Law on Customs, Tax-Free Zones or Export Processing Zones), as the case may be. Taxpayers must submit a tax list and pay the relevant tax when the customs entry form is issued in accordance with the Law on Customs.
• Services Taxpayers incur excise tax burdens when service users have paid the service fees. In the case that VAT liabilities arise, whether wholly or partially, prior to receiving payment of the service fees, taxpayers are liable for excise tax and VAT. Taxpayers must submit a tax list and pay the relevant tax within the 15th of the following month from the month of incurring tax liabilities.
• Automobile Modification Taxpayers incur excise tax burdens once the modification is completed. Taxpayers must submit a tax list and pay the relevant tax within the 15^th of the following month from the month that the modification is completed.
• Automobiles Brought for Display or Kept in Automobile Showrooms for Sale Taxpayers incur excise tax burdens at the same time with VAT. Taxpayers must submit a tax list and pay the relevant tax within the 15^th of the following month from the month of incurring tax liabilities.

(1) Tax Exemption or Tax Return for Goods Exported out of the Kingdom or Imported into Tax-Free Zones. Persons entitled to request a tax exemption or tax return for goods exported out of the Kingdom or imported into tax-free zones are listed below:



• Industrial operators are entitled to request a tax exemption or tax return in accordance with the Law on Excise Tax
• Persons who purchase or receive goods produced in the Kingdom from industrial operators for the purpose of exporting out of the Kingdom or importing into tax-free zones, who are authorized by such industrial operator, are entitled to request a tax exemption or tax return
• Juristic persons (who are not industrial operators) that initially purchase or receive goods produced in the Kingdom from industrial operators for the purpose of exporting out of the Kingdom or importing into tax-free zones, who are not authorized by such industrial operator, are entitled to request a tax return
• Other persons that did not initially purchase or receive goods produced in the Kingdom from industrial operators are entitled to request a tax return

(2) Tax Exemption for Goods Exported out of the Kingdom or Imported into Tax-Free Zones to be Stored in Warehouses. Persons entitled to request a tax exemption for goods exported out of the Kingdom or imported into tax-free zones to be stored in warehouses are listed below:



• Industrial operators in accordance with the Law on Excise Tax B.E. 2527 (1984) and
• Persons who purchase or receive goods produced in the Kingdom from industrial operators for the purpose of exporting out of the Kingdom or importing into tax-free zones, who are authorized by such industrial operator

(3) Excise Tax Reduction. Industrial operators can submit a statement of intent to request a tax reduction along with related documents at the Excise Office in the area of which their factory is located. The statement of intent to request a tax reduction must be submitted with Form PorSor.01-29 and Form PorSor.01-30 along with details of the capital structure, production formulas, tax invoices, the account of goods brought for use as raw materials in the production and the notification form for the selling price. Goods that industrial operators can request for a tax reduction in accordance with Section 11 of the Excise Tax Act B.E. 2527 (1984) and related ministerial rules are listed below:



• Oil and oil products
• Automobiles
• Air-conditioners
• Motorcycles
• Batteries
• Beverages

(1) Fines. Taxpayers shall subject to a fine in the cases and at the rates as listed below:


• In the case that the tax list is not submitted within the stipulated period, whether excise tax registration is made or not, taxpayers shall be subject to a fine of twice the tax amount
• In the case that the tax list is submitted in an incorrect manner, causing a reduction of the tax amount that must be paid, taxpayers shall be subject to a fine of twice the missing tax amount

(2) Surcharges. Taxpayers who do not pay the tax within the stipulated period or partially paid the tax amount that must be paid shall be subject to a surcharge of 1.5% of the tax amount that must be paid (exclusive of fines) per month. The calculation of surcharges must not be compounded or exceed the tax amount that must be paid (exclusive of fines).

(3) Penalties



• Industrial operators or service operators who do not submit an excise tax registration or a notification of moving or closing down the factory or service place within the stipulated period shall be subject to a fine not exceeding Baht 5,000
• Industrial operators or service operators who do not openly disclose their excise tax registration certificate, or have torn or lost their tax registration certificate and did not ask for a replacement within 30 days from the date of being informed, and within 15 days in the case of their bonded warehouse license being torn or lost, shall be subject to a fine not exceeding 4,000 Baht
• Any persons who do not notify the selling price at the factory or the service fee within the stipulated period shall be subject to a fine not exceeding Baht 5,000
• Taxpayers who do not submit a tax list within the period stipulated by law shall be subject to a fine of twice the tax amount. In the case that a tax list is submitted in an incorrect manner, causing a reduction of the tax amount that must be paid, taxpayers shall be subject to a fine of twice the missing tax amount
• Taxpayers who do not pay the tax within the period stipulated by law shall be subject to a surcharge of 1.5% of the tax amount that must be paid (exclusive of fines) per month. The calculation of surcharges must not be compounded or exceed the tax amount that must be paid (exclusive of fines)
• Any persons who give false statements or false answers, or bring false evidence, or submit false accounts or documents to avoid the payment of tax shall be subject to a period of imprisonment not exceeding 7 years and a fine not exceeding 300,000 Baht