Bangkok:The Cabinet has approved several amendments to the sign tax law, which include imposing taxes based on the actual installation date, extending the payment deadline by 30 days, and reducing taxes by up to 90%.
According to Thai News Agency, Ms. Lalida Periswiwatana, Deputy Spokesperson for the Prime Minister's Office, announced that the Cabinet meeting has approved the principles of the draft Bill on Sign Tax (Amendment No. ...) B.E. ...., as proposed by the Ministry of Interior. The amendment aims to update the Bill on Sign Tax B.E. 2510 to align with the current economic conditions and business models. Key aspects of the amendment include adjusting the tax collection method to be fairer for businesses that do not install signs year-round, extending the tax payment deadline from 15 days to 30 days from the date of receiving the assessment notice, and allowing the submission of billboard tax returns, tax refunds, and appeals electronically while maintaining existing service channels.
The new system will calculate billboard tax based on the actual duration of installation or display. For signs not installed throughout the year, the tax will be calculated monthly, with any partial month counted as a full month. This change ensures businesses are taxed based on actual usage, reducing excessive burdens. Additionally, the amendment allows for ministerial regulations to reduce sign taxes by up to 90% in cases such as natural disasters or business closures, though these reductions are subject to specific criteria.
The draft law also reduces the number of sign categories from three to two signs with only Thai letters or numbers, and other types of signs. The tax ceiling is adjusted to reflect current economic conditions, with signs featuring Thai letters and moving text or numbers capped at 50 baht per 500 square centimeters, while other signs are capped at 25 baht per 500 square centimeters. However, these are only ceiling adjustments; actual rates will comply with ministerial regulations. A surcharge of 2% per month will apply to late payments, not exceeding the tax owed, and refund requests must be submitted within a year of the final decision.
Ms. Lalida emphasized that the amendment seeks to create fairness in tax collection by aligning payments with actual sign usage, extending deadlines, and facilitating electronic payments. The measures also aim to support those impacted by economic downturns and natural disasters, while modernizing the law to improve local revenue efficiency for public services development.