The Cabinet has approved a major overhaul of the signboard tax law, introducing monthly tax calculation based on actual installation periods instead of an annual flat rate. The payment deadline is extended to 30 days, online tax filing is enabled, tax reductions up to 90% are allowed, the tax rate ceilings are adjusted, and fines for signboards illegally encroaching on public spaces are doubled.
3 Nov 2026 GMT+7 Ms. Lalida Pertwivatana, Deputy Spokesperson for the Office of the Prime Minister announced that the Cabinet meeting resolved to approve the principles of the draft Signboard Tax Act (No. ..) B.E. .... as proposed by the Ministry of Interior to update the Signboard Tax Act B.E. 2510 (1967) to align with current economic conditions and business practices. The key revisions include fairer tax collection based on actual signboard installation periods, extended payment deadlines, introduction of electronic processing channels, and tax relief measures to ease public hardship, alongside improving local administrative revenue collection efficiency.
The new tax collection system adjusts to tax based on the actual period of signboard installation. If the signboard is not installed year-round, tax is calculated monthly, with any part of a month counted as a full month. This replaces the previous system which could impose tax on the full year, potentially burdening businesses beyond the actual usage period, thus promoting fairness. “Pay tax according to the actual time the signboard is used.” This measure will reduce the burden on businesses, especially those that use advertising signs only during festivals, promotional events, or seasonal operations.
The draft law extends the signboard tax payment deadline from 15 to 30 days from the date of assessment notification. It also enables taxpayers to file tax returns, request refunds, and submit appeals electronically for convenience and speed.
The draft law includes tax relief measures for periods when citizens and businesses face economic crises or disasters, allowing ministerial regulations to reduce the signboard tax by up to 90%. It also reduces signboard categories from three to two: those with Thai characters or numerals only, and other types. The tax rate ceilings are adjusted to reflect current times.
ExamplesSignboards with Thai characters and moving text or numbers
These ceilings are proposed in the draft law; actual tax rates will be set by relevant ministerial regulations and do not imply immediate tax increases for all types.
To regulate public areas, signboards installed without permission and encroaching on public land must pay double the calculated tax. However, paying this tax does not grant legal rights to use the public space and compliance with other related laws remains required.
The draft law revises tax exemptions for government agency signboards, limiting exemptions to those operated without profit-making objectives to ensure fair competition with the private sector.
Additionally, late payment penalties are set at 2% per month, capped at the total tax due to prevent excessive charges. Procedures for refund claims after tax assessment appeals are also defined, requiring claims within one year of the final decision notice.
Ms. Lalida stated that the Ministry of Interior has completed public consultations on the draft law, receiving feedback from 1,737 respondents with 96.69% in favor. An impact analysis report and plans for related secondary legislation have been prepared. After Cabinet approval of the principles, the draft law must still undergo legislative review and enactment processes before coming into effect.
“This signboard tax law revision aims to create fairness for citizens and businesses, especially those not using signs year-round, by taxing based on actual usage periods. It extends payment deadlines and facilitates electronic processing. At the same time, it introduces support mechanisms for businesses affected by economic or disaster conditions. The government prioritizes modernizing the law to reduce unnecessary burdens and ensure fair tax collection while enhancing local revenues for public services.” Ms. Lalida added.