Statute Details
- Title: Property Tax (Valuation by Gross Receipts for Hotel Premises) Order 2007
- Act Code: PTA1960-S742-2007
- Type: Subsidiary Legislation (SL)
- Authorising Act: Property Tax Act (Cap. 254), section 7
- Commencement: 1 January 2008
- Current status: Current version as at 27 Mar 2026
- Key provisions: Definitions (s 2); annual value methodology for hotel rooms (s 3), hotel food establishments (s 3A), hotel function rooms (s 3B); statement of gross receipts (s 5); non-application/grounds for exclusion (s 6); revocation (s 7)
- Notable amendments (from timeline): Amended by S 810/2010 (w.e.f. 1 Jan 2011); S 696/2008; S 795/2017 (w.e.f. 1 Jan 2018); S 859/2024 (w.e.f. 1 Jan 2025)
- Related legislation (as provided): Casino Control Act 2006; Planning Act 1998; Property Tax Act
What Is This Legislation About?
The Property Tax (Valuation by Gross Receipts for Hotel Premises) Order 2007 (“the Order”) sets out a specific valuation method for property tax purposes for certain parts of hotel premises in Singapore. In plain terms, it tells the tax authority how to calculate the “annual value” of (i) hotel rooms, (ii) hotel food establishments, and (iii) hotel function rooms, by reference to the hotel’s gross receipts.
Under Singapore’s property tax regime, the annual value is a key figure used to determine the tax payable. For most properties, valuation may follow general principles. However, hotels present a particular challenge: revenue is closely linked to occupancy, operations, and commercial performance. The Order therefore provides a revenue-based valuation framework, using a percentage of gross receipts (after certain deductions) to approximate annual value.
The Order also includes procedural and evidential requirements. Hotel owners must submit statements of gross receipts to the Chief Assessor by a specified deadline. If the required information is not provided, is unreliable, or does not fairly reflect comparable hotel performance, the Order may not be applied—meaning the annual value may be assessed using other approaches under the Property Tax Act framework.
What Are the Key Provisions?
1. Definitions and scope (s 2)
The Order defines “gross receipts”, “hotel”, “hotel room”, “hotel food establishment”, and “hotel function room”. “Gross receipts” is revenue from the relevant hotel component, but with an important deduction: it is calculated after deducting any cess levied under orders made under section 5 of the Singapore Tourism (Cess Collection) Act 1972. This ensures that property tax valuation is not inflated by tourism cess components.
“Hotel” is defined by reference to planning and authorisation: premises approved by the competent authority or authorised by the Minister for National Development under the Planning Act 1998 for use as a hotel. A significant exclusion is built in: a hotel within a designated site within the meaning of the Casino Control Act 2006 is excluded (as amended by S 859/2024 w.e.f. 1 Jan 2025). This matters because it carves out casino-hotel premises from the Order’s valuation method.
2. Annual value of hotel rooms (s 3)
Section 3 provides the core formula for hotel rooms. For any calendar year, the annual value of a hotel room is generally 25% of the annual equivalent of total gross receipts from that room, subject to operational timing rules.
If the hotel commences or resumes operation in that year, the annual value is 25% of the annual equivalent of the room’s gross receipts in that year (s 3(1)(a)). If the hotel is already operating (i.e., “in any other case”), the annual value is 25% of the total gross receipts from the room in the preceding calendar year (s 3(1)(b)).
Section 3 also addresses practical occupancy issues. If, after commencing/resuming, the room is never made available for occupation by guests during the calendar year, the annual value is not based on that room’s receipts (which would be nil or atypical). Instead, it is 25% of the annual equivalent of receipts from a comparable hotel room in the same hotel in that year (s 3(2)).
Similarly, if a room is added during the year or is not made available for occupation at any time in that year, the annual value is 25% of receipts from a comparable room, determined by the Chief Assessor, using either the current year or the preceding year depending on the scenario (s 3(3)). This is a targeted anti-distortion mechanism: it prevents anomalous valuation outcomes where a room’s receipts do not reflect normal commercial use.
3. Annual value of hotel food establishments and function rooms (ss 3A and 3B)
For hotel food establishments, section 3A applies a lower percentage: annual value is 10% of gross receipts (after the cess deduction) on the same operational logic as s 3. If the establishment commences or resumes operation in the year, the annual value is 10% of the annual equivalent of gross receipts in that year; otherwise, it is 10% of the gross receipts in the preceding calendar year (s 3A(a)–(b)).
For hotel function rooms, section 3B similarly uses 10% of gross receipts, with the same “commences/resumes” versus “other case” approach. The definition of “hotel function room” covers halls, ballrooms, and function rooms used or intended for meetings, conferences, seminars, courses, exhibitions, or serving meals.
4. Periods of less than one year (s 4)
Section 4 addresses the situation where gross receipts relate to a period shorter than a calendar year. In such cases, the annual value is based on the annual equivalent of total gross receipts in that period. This is crucial for hotels that open mid-year, resume after closure, or have partial-year operations. It ensures the valuation reflects a full-year basis rather than undercounting revenue.
5. Statement of gross receipts and deadlines (s 5)
Section 5 imposes a compliance obligation on hotel owners. Where annual value is to be assessed under the Order for a calendar year, the owner must furnish to the Chief Assessor a statement showing the gross receipts required for computing annual value. The statement must be in a form notified by the Chief Assessor and must be submitted by the end of March of that year (or such other month as the Chief Assessor may allow).
This provision is often the practical fulcrum in disputes: failure to submit complete, accurate, and timely gross receipts statements can trigger non-application of the Order under s 6.
6. Non-application: when the Order will not be used (s 6)
Section 6 is a set of exclusionary rules. The annual value of a hotel room will not be assessed under the Order if, for example:
- the required statement under s 5 is not furnished in accordance with s 5 (s 6(1)(a));
- the hotel is leased or licensed and the Chief Assessor is satisfied the owner cannot procure the information from the lessee/licensee (s 6(1)(b));
- the Chief Assessor is satisfied the statement is false (s 6(1)(c));
- the gross receipts shown do not fairly reflect total gross receipts of a comparable hotel room (s 6(1)(d));
- the assessment is from (and including) the date the hotel ceases operation (s 6(1)(e)).
For hotel food establishments and function rooms, s 6(2) contains parallel grounds, plus an additional condition: the annual value will not be assessed under the Order if the establishment has no receipts in both the calendar year and the preceding calendar year (s 6(2)(e)). This prevents valuation based on a non-operating or dormant business with no revenue history.
7. Revocation (s 7)
Section 7 revokes the earlier Property Tax (Valuation by Gross Receipts for Hotel Premises) Order (O 4). This indicates that the 2007 Order replaced an earlier valuation instrument and continues the gross-receipts valuation approach under updated definitions and amendments.
How Is This Legislation Structured?
The Order is concise and structured as follows:
- Section 1: Citation and commencement (effective 1 January 2008).
- Section 2: Definitions, including the key concept of “gross receipts” and the scope definitions for “hotel”, “hotel room”, “hotel food establishment”, and “hotel function room”.
- Section 3: Annual value assessment for hotel rooms (25% methodology, with operational timing and comparable-room adjustments).
- Section 3A: Annual value assessment for hotel food establishments (10% methodology).
- Section 3B: Annual value assessment for hotel function rooms (10% methodology).
- Section 4: Annual equivalent approach for periods less than one year.
- Section 5: Statement of gross receipts requirement and submission deadline.
- Section 6: Non-application provisions—circumstances where the Order’s valuation method will not be used.
- Section 7: Revocation of the earlier Order.
Who Does This Legislation Apply To?
The Order applies to owners of hotels (and, in practice, the relevant property tax assessment process administered by the Chief Assessor) where the premises fall within the definition of “hotel” and the relevant components are “hotel rooms”, “hotel food establishments”, or “hotel function rooms”. The valuation method is component-based: different percentages apply to rooms versus food establishments and function rooms.
It does not apply to hotels within a designated casino site under the Casino Control Act 2006, reflecting a deliberate policy separation. It also does not apply where the conditions in s 6 are met (e.g., missing statements, false statements, inability to obtain information from lessees, or cessation of operations).
Why Is This Legislation Important?
For practitioners, the Order is important because it provides a relatively transparent valuation formula tied to commercial receipts, rather than purely rental-based valuation. The percentage approach (25% for rooms; 10% for food and function spaces) can materially affect property tax outcomes, especially for hotels with fluctuating occupancy and event-driven revenue.
Equally important are the procedural and evidential levers. Section 5’s requirement to submit gross receipts statements by end-March (or an extended month) creates a compliance timeline that can drive disputes. Section 6 then gives the Chief Assessor discretion to exclude the Order’s method where statements are missing, false, or not comparable. In practice, this means that record-keeping, audit trails, and the ability to justify comparability are central to defending assessments.
Finally, the Order’s treatment of partial-year operations and non-availability of rooms (via comparable-room rules) helps prevent manipulation or distortion. Where a room is not made available for occupation, the valuation is anchored to comparable performance rather than anomalous receipts. This can be decisive in appeals involving newly opened hotels, renovations, or rooms temporarily taken out of service.
Related Legislation
- Property Tax Act (Cap. 254) (authorising provision: section 7)
- Planning Act 1998 (authorisation/approval basis for “hotel” premises)
- Casino Control Act 2006 (exclusion for hotels within designated casino sites)
- Singapore Tourism (Cess Collection) Act 1972 (cess deduction reflected in the definition of “gross receipts”)
Source Documents
This article provides an overview of the Property Tax (Valuation by Gross Receipts for Hotel Premises) Order 2007 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.