Singapore Tourism (Cess Collection) (Formula 1 Singapore Airlines Singapore Grand Prix 2023) Order 2023

No. S 598

Singapore Tourism (Cess Collection) Act 1972

Singapore Tourism (Cess Collection)
(Formula 1 Singapore Airlines
Singapore Grand Prix 2023) Order 2023

In exercise of the powers conferred by section 5 of the Singapore Tourism (Cess Collection) Act 1972, the Minister for Trade and Industry makes the following Order:

Citation and commencement

1. This Order is the Singapore Tourism (Cess Collection) (Formula 1 Singapore Airlines Singapore Grand Prix 2023) Order 2023 and comes into operation on 1 September 2023.

Definitions

2.—(1) In this Order —

“accommodation” means accommodation consisting of or including the use, for any length of time, of a room that is provided with a bed or other sleeping facilities;

“hotel” has the meaning given by section 2 of the Hotels Act 1954;

“money’s worth” means any points, rewards or other similar thing (whether in physical or electronic form) earned by a person under any member or loyalty programme and that may be used to redeem any accommodation;

“operator”, in relation to a hotel, means the person responsible for the day‑to‑day operations of the hotel, being —

(a)	an individual, if so responsible as a sole proprietor; or
(b)	any body of persons, corporate or unincorporate;

“taxable period” has the meaning given by paragraph 4.

(2) In this Order, consideration is paid in money if the consideration is paid by any of the following means:

(a)	the presentation of a physical or an electronic payment instrument, such as cash, a cheque, a cashier’s order, or a voucher bearing a cash value or providing a discount;
(b)	the use of any credit or debit facility, such as by use of a charge card, credit card or debit card, or a credit or debit arrangement without the use of any such card;
(c)	the transfer of funds by any digital or electronic means, including by the use of a digital wallet;
(d)	a combination of any means in sub‑paragraph (a), (b) or (c).

Tourism event

3. The tourism event to which this Order relates is the Formula 1 Singapore Airlines Singapore Grand Prix 2023.

Taxable period

4. The taxable period connected with the tourism event is the period between 14 September 2023 and 17 September 2023 (both dates inclusive).

Taxable transactions on which cess is payable

5.—(1) Subject to sub-paragraph (2), the following arrangements are taxable transactions connected with the tourism event on which cess is payable:

(a)

a legally enforceable arrangement —

(i)

that is wholly or in part for accommodation —

(A)	provided or to be provided for use at any time during the taxable period; and
(B)	at premises specified (whether by name or address) in Part 1 or 2 of the Schedule, if used as a hotel when the accommodation is so provided; and

(ii)

where one party to the arrangement is the operator of the hotel;

(b)

a termination of an arrangement mentioned in sub‑paragraph (a).

(2) The following arrangements are not taxable transactions connected with the tourism event on which cess is payable:

(a)

an arrangement mentioned in sub‑paragraph (1)(a) where —

(i)

the accommodation that is provided or to be provided under the arrangement, is or is to be provided to an individual in connection with —

(A)	an order made under regulation 3(1) of the Infectious Diseases (COVID‑19 — Stay Orders) Regulations 2020 (G.N. No. S 182/2020); or
(B)	an order under section 15 or 17(3) of the Infectious Diseases Act 1976 relating to COVID‑19 or any other infectious disease; and

(ii)

either of the following applies:

(A)	one party to the arrangement is the Government or a body established by or under a public Act for a public purpose;
(B)	the premises at which the accommodation is or is to be provided are designated by a body established by or under a public Act for a public purpose, as a facility providing accommodation to individuals mentioned in sub‑paragraph (i), that are members of the crew of any ship;

(b)

a termination of an arrangement mentioned in sub‑paragraph (a).

(3) In this paragraph —

“COVID‑19” means the infectious disease known as Coronavirus Disease 2019;

“infectious disease” has the meaning given by section 2 of the Infectious Diseases Act 1976.

Tourism event establishment making taxable transactions

6. The tourism event establishment making the taxable transaction connected with the tourism event mentioned in paragraph 5(1) is the operator of the hotel.

Amount of cess

7. The cess payable on a taxable transaction connected with the tourism event is as follows:

(a)	30% of the gross receipts derived or treated as derived from each taxable transaction concerning premises specified in Part 1 of the Schedule used as a hotel;
(b)	20% of the gross receipts derived or treated as derived from each taxable transaction concerning premises specified in Part 2 of the Schedule used as a hotel.

Gross receipts where consideration paid wholly in money

8.—(1) This paragraph applies to every taxable transaction connected with a tourism event where consideration for the taxable transaction is paid wholly in money.

(2) To avoid doubt, sub‑paragraph (1) includes a taxable transaction in paragraph 5(1)(b) (called in this sub‑paragraph T2) —

(a)	that relates to a taxable transaction in paragraph 5(1)(a) (called in this sub‑paragraph T1) whose consideration is payable in money’s worth, or in both money and money’s worth; and
(b)	where none of the consideration for T1 is forfeited as a result of T2, and the consideration for T2 is paid for wholly in money.

(3) The gross receipts derived from a taxable transaction in paragraph 5(1)(a) connected with the tourism event is the total of the following:

(a)

the consideration paid for the taxable transaction;

(b)

all additional payments as follows:

(i)	any sum paid for what is commonly known as early check‑in or late check‑out;
(ii)	any sum paid for providing additional sleeping facilities in the same accommodation.

(4) The gross receipts derived from a taxable transaction in paragraph 5(1)(b) connected with the tourism event is the total of the following:

(a)	all charges paid for the termination;
(b)	all deposits forfeited because of the termination.

Gross receipts in other cases

9.—(1) This paragraph applies to —

(a)

every taxable transaction in paragraph 5(1)(a) connected with the tourism event, where —

(i)	the taxable transaction is described as complimentary or as a gift;
(ii)	the consideration for the taxable transaction is paid in money’s worth, or in both money and money’s worth; or
(iii)	the taxable transaction is a consequence of another transaction that is not a taxable transaction connected with the tourism event; and

(b)

every taxable transaction in paragraph 5(1)(b) connected with the tourism event, where the whole of the consideration mentioned in sub‑paragraph (a)(ii) is forfeited as a result of that taxable transaction.

(2) Subject to sub‑paragraph (3), the amount treated as the gross receipts derived from a taxable transaction to which this paragraph applies concerning premises used as a hotel (called in this paragraph H), must be calculated in accordance with the formula TGR ÷ N, where —

(a)

TGR is the total amount of gross receipts for every taxable transaction mentioned in paragraph 8(1) in relation to H, calculated in accordance with paragraph 8(3) and (4); and

(b)

N is the aggregate of the number of rooms on each day of the taxable period required to be provided under the taxable transactions in sub‑paragraph (a), and which —

(i)	were used by guests of H; or
(ii)	were not used due to the intended guests of the rooms failing to arrive at H (commonly known as a no show).

(3) Where the TGR under sub‑paragraph (2) is zero, the amount treated as the gross receipts derived from a taxable transaction to which this paragraph applies concerning premises used as H is —

(a)

the amount calculated in accordance with the formula in sub‑paragraph (2) as applied in relation to H for an event that —

(i)	the Board determines is equivalent to the tourism event mentioned in paragraph 3; and
(ii)	took place before 2023, or, if there is more than one such event, the most recent of such events; or

(b)

if there is no such amount under sub‑paragraph (a) — the amount calculated in accordance with the formula in sub‑paragraph (2) as applied, for the tourism event mentioned in paragraph 3, in relation to another hotel that the Board determines is comparable to and in the vicinity of H.

Made on 30 August 2023.

BEH SWAN GIN

Permanent Secretary
(Development),
Ministry of Trade and Industry,
Singapore.

[MTI 119-01-0012; AG/LEGIS/SL/305C/2020/1 Vol. 1]

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