Property Tax (Valuation by Gross Receipts for Hotel Premises) Order 2007

Status:

Published in Subsidiary Legislation Supplement
on 28 Dec 2007

No. S 742

Property Tax Act

(Chapter 254)

Property Tax (Valuation by Gross Receipts for Hotel Premises) Order 2007

In exercise of the powers conferred by section 7 of the Property Tax Act, the Minister for Finance hereby makes the following Order:

Citation and commencement

1. This Order may be cited as the Property Tax (Valuation by Gross Receipts for Hotel Premises) Order 2007 and shall come into operation on 1st January 2008.

Definitions

2. In this Order —

“gross receipts”, in relation to a hotel room, includes receipts from rental of any bed therein;

“hotel” means any premises registered as a hotel under the Hotels Act (Cap. 127);

“hotel room” means any guest room, suite or dormitory space in a hotel.

Assessment of annual value

3.—(1) Subject to the provisions of this Order, the annual value of a hotel room in a hotel for any calendar year shall be —

(a)	if the hotel commences or resumes operation in that year, 20% of the annual equivalent of the total gross receipts from the room in that year; and
(b)	in any other case, 20% of the total gross receipts from the room in the preceding calendar year.

(2) For the purposes of sub-paragraph (1)(a), where the hotel room is not made available for occupation at any time in the calendar year after the hotel commences or resumes operation, the annual value of the room for that year shall be 20% of the annual equivalent of the total gross receipts from a comparable hotel room in that hotel in that year.

(3) For the purposes of sub-paragraph (1)(b), where the hotel room is added to the hotel in the calendar year or is not made available for occupation at any time in that year, the annual value of the room for that year shall be 20% of the total gross receipts from a comparable hotel room in that hotel in that year or the preceding calendar year, as determined by the Chief Assessor.

Assessment for part relating to period less than one year

4. Where, for the purpose of an assessment under paragraph 3(1)(b) and (3), the total gross receipts of a hotel room relate to a period of less than a year, the annual value of the room shall be based on the annual equivalent of the total gross receipts in that period.

Statement of gross receipts

5. Where the annual value of hotel rooms in a hotel is to be assessed for any calendar year under this Order, its owner shall furnish to the Chief Assessor, in a form notified by the Chief Assessor to him, by the end of March of that year or such other month as the Chief Assessor may allow, a statement showing such gross receipts as the Chief Assessor may require for computing the annual value of those rooms.

Non-application of Order

6. The annual value of a hotel room in a hotel shall not be assessed under this Order —

(a)	if the statement required under paragraph 5 for that room has not been furnished in accordance with that paragraph;
(b)	if the hotel has been leased or licensed by its owner to another and the Chief Assessor is satisfied that the owner is unable to procure from the lessee or licensee information required to furnish the statement under paragraph 5;
(c)	if the Chief Assessor is satisfied that the statement furnished under paragraph 5 for that room is false;
(d)	if, in the opinion of the Chief Assessor, the total gross receipts shown in the statement furnished under paragraph 5 in relation to that room does not fairly reflect the total gross receipts of a comparable hotel room; or
(e)	from the date the hotel ceases operation.

Revocation

7. The Property Tax (Valuation by Gross Receipts for Hotel Premises) Order (O 4) is revoked.

Made this 27th day of December 2007.

TEO MING KIAN

Permanent Secretary,
Ministry of Finance,
Singapore.

[MOF R42.14.0001 V3; AG/LEG/SL/254/2002/1 Vol. 3]

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