Udon Thani:The Cabinet has approved significant amendments to the sign tax law aimed at increasing flexibility and fairness for businesses. The new provisions allow for tax collection based on the actual months of sign installation, replacing the previous requirement for a full year's payment. The changes were approved during a Cabinet meeting held at the Montathip Convention Center in Udon Thani.
According to Thai News Agency, the amendments include extending the tax payment deadline to 30 days and enabling online tax filing. Businesses will also be eligible for tax deductions of up to 90% on signage. Additionally, the reforms introduce stricter regulations on signs encroaching on public spaces, doubling the tax rate for such signs.
Ms. Lalida Periswiwatana, Deputy Spokesperson for the Prime Minister's Office, explained that the draft Bill on Sign Tax (Amendment No. ...) B.E. ...., proposed by the Ministry of Interior, seeks to align the law with current economic conditions and business models. Key changes involve adjusting tax collection to reflect actual usage periods, extending the payment deadline, increasing electronic payment options, and implementing tax reduction measures to alleviate public hardship while improving local revenue collection efficiency.
The draft law also revises the sign tax structure, reducing the number of categories from three to two and adjusting the tax ceiling. This aims to better reflect economic conditions without immediately increasing all tax categories. Measures to prevent illegal sign installations in public areas have also been strengthened, with doubled tax rates for non-compliance. However, paying the tax does not grant legal rights to use public areas, and compliance with other laws remains mandatory.
The amendments include criteria for exemption from signage tax for government agencies operating without profit, promoting fair competition with the private sector. Adjustments have been made to the penalties for late tax payments, capping surcharges to prevent excessive penalties. Additionally, guidelines for requesting refunds after appealing tax assessments have been established.
The Ministry of Interior conducted public consultations on the draft law, receiving positive feedback from 1,737 people, with 96.69% in agreement. A report on the potential impacts of the law and related subordinate legislation has been prepared. Despite Cabinet approval in principle, the draft law must still undergo legislative review and enactment processes before coming into effect.