Running a hotel business is quite difficult to consider there are many aspects to take care of, however, accounting is one of those tasks that can be outsourced to accounting firms in Singapore that can handle all the bookkeeping and reporting in a professional manner.
If you are a hotel business owner and need help, this article briefly explains how our accountants in Singaporecan help you.
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Accounting services for your hotel in Singapore
A hotel, no matter if it is a small or large one, implies a complex accountingit must comply with various requirements. For example, the Singapore Inland Revenue Authority (IRAS) in collaboration with the Tourism Board has agreed on various facilities for hotel keepers which can be used to your advantage in diminishing the taxes paid in the city-state, or the use of incentives to improve your services.
Returning to the accounting services available in Singapore, here are the ones we can provide if you are a hotel owner:
- tailored guidance in meeting the tax requirements applicable in this sector;
- the preparation of accounts and financial statements, as well as monthly and yearly reports;
- audit services are also available for your hotel in Singapore;
- assistance in applying for various tax incentives available for tourism facilities.
Even if a hotel is not subject to regular bookkeeping operations such as the case of a convenience store, for example, it must use specific software where all the accounting operations are operated. These must indicate the payments made by clients, the services they use, the discounts they have (if any), and other tax information.
Apart from these, a hotel must comply with the requirements imposed by the IRAS on hotel operators in Singapore.
GST registration and taxation for hotels in Singapore
The Goods and Services Taxis one of the most important levies applied to accommodation facilities in Singapore. As such, our local accounting firm offers tailored support with GST enrolment, filing, and payment.
Here are the main aspects to consider when it comes to the GST applicable to hotels in Singapore:
- mandatory registration is needed when a hotel exceeds a taxable turnover of SGD 1 million;
- however, hotels can also be registered for GST voluntarily, as they can obtain input tax credits associated with this levy.
Please note that starting with 2024, the GST rate has been increased to 9% and when it comes to tourism it applies to:
- the rate charged per room;
- additional services, which include the serving of food and beverages, SPA procedures, and other activities available in the hotel.
If you need support with GST registration, our accountants in Singapore are at your disposal for both types of procedures.
The property tax applied to hotels in Singapore
Hotel owners must pay the Singapore property tax which is computed differently compared to that applied to private citizens.
Singapore hotels are assessed based on the annual value of their rooms and are imposed the property tax at a fixed percentage of the gross amount of the receipts recorded in the previous year. The annual value assessment rate is set at 25%.
It should also be noted that the IRAS imposed the annual value on food and beverages sold in hotels. The rate of this assessment is set at 10% starting with 2018.
Singapore hotels must also pay a tax called CESS on the promotion of tourism by the Singapore Tourism Board.
Our accountants in Singapore can help you with the calculation and filing of the tax documents for the assessment of the property tax. Do you want to open a company in another country, such as Bahrain? We can put you in contact with our partners.
CESS collection in Singapore
The Singapore Tourism Board imposes a CESS fee on hotels that are promoted it during tourism events. This tax is collected in order to bring to the attention of local and foreign tourists various events that occur in the city-state during the year.
The CESS tax has been imposed in the city-state since 1972 and it has contributed significantly to the increase of this sector.
The CESS applies specifically to the Formula 1 Grand Prix-related events and must be paid by Singapore hotels on all taxable transactions connected to the event. The amount to be paid is set at 20% or 30% of the gross receipts coming from each taxable transaction. Our audit firm in Singapore can also offer specialized services for such businesses.
Our accountants in Singapore are at your service with dedicated services associated with the levy of the CESS fee.
The tourism tax in Singapore
Apart from the taxes to be paid by Singapore hotels, there is also a tourism tax applicable as a fee of SGD 1 per night which must be paid by each hotel guest, no matter his/her nationality. The fee is applied upon check-in. The tax is collected by hotels and paid to the Tourism Board.
There are also exemptions from this tax, and it applies to:
- people coming to Singapore for medical treatments;
- children under the age of 12.
Please note that these exemptions can change, so do not hesitate to reach out to our accounting firm in Singapore for updated guidance. We can also offer support in implementing the necessary procedures for collecting and remitting the levy to the Tourism Boards, as failing to do so may result in penalties.
We also provide tailored accounting services for shipping companies in Singapore that also fall under specific tax regulations.
Filing requirements for hotels in Singapore
Just like other businesses, Singapore hotels must also comply with financial statement filing requirements as follows:
- GST returns must be submitted quarterly or annually, no later than one month after the end of the tax period;
- the tourism tax must be filed monthly, no later than the 15th of the following month;
- for employees, monthly payments must be made for social security purposes, however, hotels can rely on our tailored solutions for payroll in Singapore.
We invite you to watch our video on this subject below:
Incentives for tourism businesses in Singapore
The Singapore Tourism Board has enabled two incentive schemes for hotels in the city-state. These are:
- the Double Tax Deduction for Approved International Fair through which Singapore businesses are encouraged to participate in international trade fairs;
- the Double Tax Deduction for Inbound Tourism Promotion through which companies are encouraged to promote internal tourism.
Number of hotels in Singapore
According to the latest data gathered by the Singapore Statistics Office:
- at the end of 2024, there were 281 hotels registered in the City-State;
- the average occupancy rate was 81.8%;
- the average rate per room was around SGD 276;
If you need accounting services for your hotel in Singapore, our accounting firm is at your service, so do not hesitate to contact us for tailored guidance and assistance.