Singapore Hotels

Singapore Hotels Higher Property Taxes

Singapore hotels will pay higher property taxes from next year due to changes in the way the tax is calculated.

Starting next year, the annual value of a hotel will be calculated based on 20 percent of gross room receipts in the preceding year, up from the current 15 percent, the report said, quoting a spokeswoman from the Inland Revenue Authority of Singapore (IRAS).

Hotel owners have to pay 10 percent of the annual value to the IRAS as property tax.

Hotels will also have to pay more tax for their food and beverage outlets from next year, when the tax formula will based on the estimated current market rent of food and beverage outlets instead of 5 percent of gross food and beverage revenue.

The Business Times said hotels' annual value a would be adjusted again in 2009 when it would be based on 25 percent of gross room receipts.