Hotel And Restaurant (Taxation) Ordinance 2013

On October 15th 2013 the New Hotel and Restaurant (Taxation) Ordinance 2013 came into effect. This ordinance amends the former Hotel and Restaurant (Taxation) Ordinance which was into effect prior to October 15th.

There are a wide range of new provisions which clients should be aware of.

PREMISES TO WHICH THE ORDINANCE APPLIES

The first and far reaching effect of the new Ordinance is that the provisions of the Ordinance applies to any premises used for providing board and lodging or lodging only regardless of whether the proprietor receives a reward or does not. The consequence of this is the fact that all premises which are used to accommodate persons other than Belongers, PRC holders and work permit holders even in instances where the proprietor does not receive a reward are included under the terms of the Ordinance and must adhere to its provisions including registration with revenue authorities, filing returns etc.

Moreover a key change is also to what it means for a proprietor to receive reward. Reward has been defined as money or otherwise and so can include non-financial compensation.

GUEST REGISTERS, GUEST STATEMENTS and ACCOUNTS

Proprietors are now required to keep their guest registers, guest statements and accounts for a period of 24 months instead of the former 12 months.

The documents proprietors are required to keep for a period of 24 months have been extended to include original return form; statements showing the service provided, the charges incurred and the service received; financial statement, notes clarifying transactions; bank deposits; sales books and ledgers.

TAXABLE CATEGORIES

The categories on which accommodation tax is payable on has been extended. Guests now not only have to pay a total of 12% on the total of charges including sleeping accommodation meals, beverages, lighting, fuel, water, furniture, domestic appliances and equipment and laundering, but also on the new categories of any privilege, amenity, facility or service for any cultural or recreational activity or pursuit as well as any other privilege, amenity or facility in connection with the guests accommodation.

DETAILS OF AGENT TO BE FILED WITH PERMANENT SECRETARY FOR NON-RESIDENT PROPRIETORS

The practice of filing the name of a representative who will be acting on behalf of a non-resident proprietor with the revenue control authorities has now been made a legislative requirement.

NOTICE OF NON BOOKINGS

In addition to filing a return in months where...

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