Signboard tax: what size triggers it, where to file, and which sign design costs least

Almost every storefront sign is taxable — even a sign that's pure image with no text at all. Here's how to calculate signboard tax, where to file, and which sign design saves the most money.

Nearly every business with a storefront has some kind of sign — a shop name, a logo, or an advertising board. Many owners don't realize that these signs are subject to tax under the law, and that failing to file correctly can result in surcharges. This article covers which signs are taxable, how to calculate the tax, where to file, and which sign design saves the most money.

What is signboard tax?

Signboard tax (ภาษีป้าย) is a local tax levied on signs displaying a name, brand, or mark used to conduct trade or business for income, regardless of the material used (canvas, wood, acrylic, sticker, LED screen). It is collected by the local administrative organization in the area where the sign is located, and is payable annually.

What size of sign is taxable?

The general rule is that almost any sign used for trade or to generate income is taxable, though the law does provide exemptions for certain types of signs. Under Section 8 of the Signboard Tax Act B.E. 2510 (1967), these include:

• Signs displayed inside a building used for trade, with an area not exceeding 3 square meters per sign
• Signs attached to a vehicle, with an area not exceeding 500 square centimeters
• Signs displayed at a theater and on theater premises to advertise a performance
• Signs of government agencies, state enterprises, or non-profit organizations (subject to conditions set by law)

If a business's sign doesn't fall within these exemptions, no matter how small, it must still be filed and taxed under the law — only the amount payable will be smaller or larger depending on the sign's area.

A common point of confusion: does a sign with only an image and no text at all still get taxed?

Many people mistakenly believe that a sign with no text at all — just a logo or symbol — is exempt from signboard tax, on the assumption that it isn't a "shop name sign" in the ordinary sense. Under the law, however, the opposite is true: a purely pictorial sign is not only taxable, it falls into the most expensive tax category.

The reason is that the law classifies sign categories based primarily on "the presence or absence of Thai script." When a sign has no Thai text at all — whether because it's purely an image or because it uses only foreign text — it is automatically classified as Category 3, which carries the highest tax rate of 50 baht per 500 sq cm, compared to just 5 baht per 500 sq cm for a sign in Thai text only — a tenfold difference.

A worked example

A coffee shop displays a storefront sign showing a logo of a coffee bean and a cup, with no text at all. The owner assumed that because there was no shop name written on it, it wasn't a sign subject to tax. In reality, however, this sign still qualifies as a "sign used to conduct trade," because the logo functions in place of the shop name to advertise the business, and so it is taxable. Because it contains no Thai text at all, it would be classified as a Category 3 sign at the highest tax rate, rather than the much cheaper Category 1.

The real exemption applies to signs that are not used for trade or to generate income at all — for example, decorative wall art unrelated to a brand name or product — or that meet the exemption conditions under Section 8 mentioned above (such as an in-building sign no larger than 3 sq m). It is not enough for a sign simply to have "no text" on it.

Where do you file?

The sign owner must file and pay signboard tax at the local authority where the sign is actually located, not the company's registered address, as follows:

• Bangkok — file at the district office covering the area where the sign is located
• Upcountry (outside municipal areas) — file at the Subdistrict Administrative Organization (อบต.)
• Upcountry (within municipal areas) — file at the municipality office
• Pattaya City — file at Pattaya City Hall

If a business has multiple branches with signs in multiple locations, it must file separately for each location — you cannot file everything together in one place.

How is signboard tax calculated?

Formula: Signboard tax = (sign area ÷ 500 sq cm) × the tax rate for the sign category

Step 1: Calculate the sign area Measure the widest point multiplied by the longest point of the sign's boundary (in centimeters). If the result includes a remainder greater than half of 500 sq cm, round up to a full 500 sq cm; if half or less, round down.

Step 2: Look up the tax rate for the sign category Under the Ministerial Regulation on Signboard Tax Rates B.E. 2563 (2020), there are three main categories:

If the calculated tax is less than 200 baht, the law sets a minimum of 200 baht per sign.

Calculation example: A Category 2 sign measuring 200 × 100 cm = 20,000 sq cm → (20,000 ÷ 500) × 26 = 1,040 baht

Which sign design costs the least?

From the tax rate table, you can see that a sign using Thai text only (Category 1) has the lowest tax rate, at 5 baht per 500 sq cm — more than 5 times cheaper than Category 2, and 10 times cheaper than Category 3.

So, if you want to minimize signboard tax, consider the following:

• Design the sign using Thai text only, without mixing in English or images, if your business doesn't need to communicate in a foreign language.
• If you need an English brand name, consider splitting it into several smaller signs instead of one large sign, to reduce the total area used in the calculation (but check with the local authority first, as some areas may combine adjacent signs into a single sign for tax purposes).
• Avoid LED display signs or signs with changeable text if not necessary, since these types of signs are often taxed at a higher rate than ordinary signs.

When do you file?

• For a sign that has already been taxed before, file form PP 1 (ภ.ป.1) and pay the tax between January 1 and March 31 of each year.
• For a sign newly installed during the year, you must file within 15 days of the installation date.
• After filing, the officer will issue an assessment notice (form PP 2 / ภ.ป.2), and the tax must be paid within 15 days of receiving the assessment notice.
• If the tax payable exceeds 3,000 baht, you may request to pay in 3 equal installments, provided you apply before the payment due date.

What happens if you don't file, or file late?

• Failing to file within the deadline incurs a surcharge of 10% of the tax payable.
• Filing incorrectly, resulting in a lower calculated tax than the correct amount, incurs a surcharge of 10% of the additionally assessed tax.
• Failing to pay the tax within the deadline incurs a surcharge of 2% per month on the outstanding tax.

What documents do you need to prepare?

• The previous year's signboard tax receipt (for an existing sign)
• A copy of the sign owner's ID card
• A commercial registration certificate, or a company registration certificate
• A simple map showing the sign's location
• A power of attorney (if you cannot file in person)

Summary

Signboard tax is a local tax that business owners often overlook, yet it applies to almost every type of sign used for trade, with only a few exceptions for certain small signs specified by law. The tax calculation depends on both the sign's area and the type of text it carries — a sign in Thai text only is taxed at the lowest rate, while a purely pictorial sign with no text at all is still taxed at the highest rate. Business owners should file and pay the tax on time in the area where the sign is actually located, to avoid surcharges. If you're unsure whether your business's sign is subject to tax, consult an accounting and tax professional, or check directly with the local authority.