This tax may be imposed at various rates per square meter (depending on the language) on any signs or billboards which display a name, trademark or product for the purpose of advertising or providing information on businesses.
Keywords: Thailand, Tax, Signboard Tax, Tax rates, Tax calculation, Tax return, Penalties
The local authorities which administer this tax are the 76 provinces, the Bangkok Metropolitan Authority and the City of Pattaya.
Typical examples of signboards that would be taxable:
- Signboards at a hotel
- Company’s nameplate installed in front of the building / office space
- Advertising boards at an airport / bus stop / hotel / shopping center / department store
- Billboards at tollways
- Posters shown in the train station
Who is liable for signage tax?
1. The owner of the signboard; or
2. In the absence of a tax filing or the officer cannot find the owner of that signboard, the tenant that hosts the signboard.
1. Signboards that display only Thai words are taxed at the rate of Baht 3 per 500 square centimeters;
2. Signboards displaying both Thai and foreign words and/or pictures are taxed at Baht 20 per 500 square centimeters;
3. Signboards that display foreign words alone with a picture or logo are taxed at Baht 40 per 500 square centimeters; and
4. Signboards that display foreign words alone or have Thai words below the foreign words are taxed at Baht 40 per 500 square centimeters.
A minimum signboard tax of Baht 200 is payable.
Regardless of the signboard’s shape, the area is calculated from the widest and tallest points on the signboard.
Signage tax is calculated as:
Tax payable = (Width in sq cm x Length in sq cm) / 500 sq cm × signage rate
A signboard containing both Thai and foreign words and covering an area of 10,000 square centimetres.
10,000 sq cm / 500 sq cm = 20
20 x Baht 20 = Baht 400
Exemptions from Signboard Tax
The following categories of signboard are tax exempt:
i. For public places or organisations owned by the government;
ii. For private schools within the compound of the schools;
iii. Displayed at the theatre and movie theatre;
iv. Displayed at events organised from time to time;
v. Attached to a vehicle, human or animal;
vi. On products or containers;
vii. Farmers’ produce signs;
viii. Confined in the internal place of business;
ix. For religious bodies or charitable organisations and associations;
x. Bank of Thailand's Government Housing Bank, Bank for Agriculture and Cooperatives and Financial Industries.
Tax return and filing deadline
Owners of signboards must file the tax return (PP.1) within 31 March of each year and the tax must be paid within 15 days after notification of the tax assessment. The return is filed at the Local District Office. Documentation required in support of the tax return:
1) Photo of the sign or billboard with details of its size and the date the sign or billboard was erected.
2) Copy of the company’s affidavit (issued no more than 6 months previously) certified as a true copy by the company’s director together with the company’s seal affixed.
3) Copy of the previous signage tax receipt (if any)
In case of failure to file a tax return, there is a 10% surcharge on the signboard tax payable. Failing to pay signboard tax carries a 2% surcharge per month on the signboard tax payable.
Setting up or altering an existing sign
A company must notify the Local District Office within 15 days of setting up or altering a sign (for example changing from Thai language to a logo, picture or foreign language).
New businesses in Thailand
Companies that are not clear as to whether their sign or billboard is subject to signboard tax should clarify with the Local District Office within 15 days from the date of erecting the sign in order to avoid any tax surcharge.