Cess is a tax of 1% levied on cessable items, such as hotel rooms and towel charges, sold by tourist establishments. Here is a quick overview of Cess and how it affects your business. It is not meant to be an in-depth guide on Cess.
What Is Cess?
What Are Cessable Items?
When Do I Have To Pay Cess?
When Can I Collect Cess?
How Do I Register?
How Do I File My Cess Returns?
When Do I Pay Cess Collected To IRAS?
Where Can I Get Help?
What Is Cess?
- Cess is a tax of 1% levied on all cessable items sold by tourist hotels, tourist food establishments and tourist public houses.
- Cess is collected by the Singapore Tourism Board (STB) under the Singapore Tourism (Cess Collection) Act. The Inland Revenue Authority of Singapore (IRAS) administers and collects Cess on behalf of STB.
- With effect from 1 July 2007, Cess has been reduced to 0%. Submission of Cess forms for periods up to 30 June 2007 still applies.
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What Are Cessable Items?
- Good and services that are subject to Cess are known as cessable items.
- They include hotel rooms, towel charges, sale of food and drink and hire of coats and ties. Items such as laundry and telephone services are non-cessable.
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When Do I Have To Pay Cess?
- You have to pay Cess when you buy goods or services from tourist establishments.
- Cess does not replace GST or any other tax. It is an additional tax.
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When Can I Collect Cess?
When your business is:
- a tourist hotel
- a tourist food establishment
- a tourist public house (selling liquor to the public)
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How Do I Register?
- From September 2005, you will be automatically registered for Cess collection if your business is:
- a tourist hotel
- a tourist food establishment
- a tourist public house (selling liquor to the public)
- Registration is free but you need to place a security deposit.
You need to de-register from Cess if you are no longer entitled to collect Cess. For instance, when your business has ceased or you have given up your Public House Liquor Licence.
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How Do I File My Cess Returns?
- You need to file Cess returns quarterly, monthly and yearly.
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When Do I Pay Cess Collected To IRAS?
- Cess is paid quarterly at the same time as submitting your Cess Payment Form F2.
- You should always pay on time to avoid penalty fees.
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Where Can I Get Help?
- Visit these websites and web resources for more in-depth information on Cess or consult with your accountant.
- You can also contact IRAS:
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