Bangkok:The Cabinet has approved significant amendments to the sign tax law, allowing taxes to be collected based on the actual months a sign is installed, rather than requiring payment for a full year.
According to Thai News Agency, the amendments, proposed by the Ministry of Interior, aim to align the Bill on Sign Tax B.E. 2510 with current economic conditions and business models. The changes include adjusting the tax collection method to be fairer to businesses that do not install signs year-round, extending payment deadlines, increasing electronic payment options, and establishing tax reduction measures to alleviate public hardship.
The key change involves adjusting the sign tax collection criteria to align with the actual duration of installation or display. Taxes will now be calculated monthly, with any fraction of a month counted as a full month, replacing the previous method that could burden businesses with taxes exceeding the actual usage period. This aims to reduce the burden on businesses, particularly those using advertising signs only during festivals, promotional activities, or seasonal operations.
Additionally, the deadline for paying sign tax has been extended from 15 days to 30 days from the date of receiving the assessment notice. Electronic submissions of sign tax returns, refund requests, and appeals are now available, alongside traditional processing methods. The draft law also includes measures to alleviate the tax burden during times of economic distress or special events, allowing for sign tax reductions up to 90% under certain circumstances.
The draft law revises the number of sign categories from three to two and adjusts the tax ceiling to reflect current economic conditions. Measures to maintain order in public areas have been strengthened by imposing a tax of double the calculated amount on signs encroaching on public areas, though this does not grant legal rights to use such areas.
Exemption criteria for government agencies have also been revised to ensure fair competition with the private sector. Criteria for late tax payments have been adjusted with a surcharge of 2% per month, not exceeding the tax due. Guidelines for requesting a refund after tax assessment appeals require filing within one year of the decision notification.
Feedback from public consultation showed strong support for the amendments, with 96.69% of participants agreeing. Despite Cabinet approval in principle, the draft law must still undergo review and enactment processes before coming into effect.