Statute Details
- Title: Singapore Tourism (Cess Collection) (Formula 1 Singapore Airlines Singapore Grand Prix 2022) Order 2022
- Act Code: STCCA1972-S742-2022
- Legislation Type: Subsidiary legislation (SL)
- Authorising Act: Singapore Tourism (Cess Collection) Act 1972
- Enacting Formula / Power: Made under section 5 of the Singapore Tourism (Cess Collection) Act 1972
- Commencement: 20 September 2022
- Primary Subject: Collection of tourism cess for a specified tourism event (Formula 1 Singapore Airlines Singapore Grand Prix 2022)
- Key Provisions (from extract): Definitions (s 2); tourism event (s 3); taxable period (s 4); taxable transactions (s 5); hotel operator as “tourism event establishment” (s 6); cess rates (s 7); gross receipts where paid wholly in money (s 8); gross receipts in other cases (s 9)
- Schedule: Specifies hotel premises categories for different cess rates (Part 1 and Part 2)
- Version Status: Current version as at 27 Mar 2026 (timeline indicates original making on 20 Sep 2022; SL 742/2022)
What Is This Legislation About?
The Singapore Tourism (Cess Collection) (Formula 1 Singapore Airlines Singapore Grand Prix 2022) Order 2022 (“the Order”) is a targeted instrument that applies the Singapore Tourism (Cess Collection) framework to a single, named tourism event: the Formula 1 Singapore Airlines Singapore Grand Prix 2022. In practical terms, it identifies the event, fixes the period during which accommodation-related transactions are treated as “taxable”, and sets the cess rate payable by the relevant tourism event establishment—namely, the operator of hotels used to provide accommodation for that event.
Tourism cess is a levy collected from the tourism sector to support tourism-related initiatives. This Order does not create the cess regime from scratch; instead, it operationalises the regime for a specific event by defining what counts as a taxable transaction connected with the event, who must pay, and how the “gross receipts” base is computed. It also includes carve-outs for certain accommodation arrangements connected to public health orders and certain public-purpose facilities.
For practitioners, the key value of the Order is that it translates the general cess law into event-specific mechanics: it tells hotel operators when the cess applies (29 September 2022 to 2 October 2022), which hotel premises fall into which cess-rate category (Part 1 vs Part 2 of the Schedule), and how to calculate the cess base where consideration is paid in money versus “money’s worth” (such as loyalty points or rewards).
What Are the Key Provisions?
1. Definitions and interpretive rules (Section 2)
Section 2 provides definitions that matter for calculating cess. “Accommodation” is defined broadly as accommodation involving the use of a room with a bed or other sleeping facilities. “Hotel” is tied to the Hotels Act 1954, which is important because the cess framework depends on whether premises are “used as a hotel”. The Order also defines “money’s worth” to include points, rewards or similar benefits earned under loyalty or member programmes and redeemable for accommodation. This definition is crucial for determining whether consideration is “wholly in money” (Section 8) or falls into the “other cases” regime (Section 9).
Section 2(2) further clarifies when consideration is treated as “paid in money”. It includes cash and cheques, vouchers with cash value or discounts, credit/debit card facilities, digital wallet transfers, and combinations of these. This interpretive provision reduces uncertainty where hotel bookings involve mixed payment methods.
2. The event and the taxable period (Sections 3 and 4)
Section 3 identifies the tourism event: the Formula 1 Singapore Airlines Singapore Grand Prix 2022. Section 4 then sets the “taxable period” connected with the event: 29 September 2022 to 2 October 2022 (both dates inclusive). This means that only accommodation arrangements that provide (or are to provide) accommodation for use during that window are within the cess net, even if the booking or arrangement is made earlier or later.
3. Taxable transactions and exclusions (Section 5)
Section 5 is the core charging provision for what transactions are taxable. In broad terms, a “taxable transaction” connected with the event includes:
- A legally enforceable arrangement that is wholly or in part for accommodation provided (or to be provided) for use during the taxable period, and at premises specified in Part 1 or Part 2 of the Schedule (and used as a hotel when the accommodation is provided); and
- Where one party is the operator of the hotel.
The inclusion of “termination of an arrangement” (Section 5(1)(b)) is also significant: cess can apply not only to the original accommodation arrangement but also to charges or forfeitures that arise from termination.
Section 5(2) provides important exclusions. Notably, it excludes certain arrangements where the accommodation is provided (or to be provided) to individuals connected with infectious disease orders (including COVID-19 stay orders or orders under the Infectious Diseases Act 1976) and where either (i) one party is the Government or a public-purpose body, or (ii) the premises are designated by a public-purpose body as a facility providing accommodation to specified categories (including ship crew). This carve-out reflects a policy choice to avoid imposing tourism cess on accommodation arrangements that are effectively public health or public-purpose measures rather than tourism-driven commercial hospitality.
For practitioners, the exclusion is fact-sensitive: it requires both a qualifying infectious disease connection and a qualifying Government/public-purpose element (or designated premises element). It is not enough that the accommodation relates to COVID-19; the statutory conditions must be met.
4. Who must pay: the hotel operator as “tourism event establishment” (Section 6)
Section 6 identifies the “tourism event establishment” making the taxable transaction as the operator of the hotel. This aligns with the operational reality that the hotel operator controls day-to-day hotel management and is the party able to compute gross receipts and remit cess. It also means that contractual arrangements involving intermediaries (e.g., booking agents) will not displace the statutory payer if the operator is the relevant party to the taxable arrangement.
5. Cess rates by premises category (Section 7 and the Schedule)
Section 7 sets the cess payable as a percentage of gross receipts, depending on which part of the Schedule the premises fall into:
- 30% of gross receipts for premises specified in Part 1 of the Schedule used as a hotel; and
- 20% of gross receipts for premises specified in Part 2 of the Schedule used as a hotel.
The Schedule therefore functions as a classification mechanism. For counsel advising hotel operators, the first practical step is to confirm whether the relevant hotel premises are listed in Part 1 or Part 2, because the rate difference is material.
6. Computing gross receipts where consideration is wholly in money (Section 8)
Section 8 applies where consideration for the taxable transaction is paid wholly in money. It also contains a “to avoid doubt” clarification dealing with mixed consideration scenarios: if a taxable transaction relates to another taxable transaction where consideration is payable in money’s worth (or both money and money’s worth), and none of the consideration for the first transaction is forfeited as a result of the second transaction, then the gross receipts for the second transaction are still treated as being paid wholly in money.
Section 8(3) defines gross receipts for accommodation arrangements (Section 5(1)(a)) as the total of:
- the consideration paid for the taxable transaction; and
- additional payments, including sums for early check-in or late check-out, and sums for additional sleeping facilities in the same accommodation.
This is a broad base: it captures ancillary charges that increase the total amount paid for the accommodation package.
Section 8(4) defines gross receipts for termination-related taxable transactions (Section 5(1)(b)) as the total of charges paid for termination and deposits forfeited because of termination.
7. Computing gross receipts in other cases (Section 9)
Section 9 addresses taxable transactions where consideration is not wholly in money—particularly where consideration is paid in “money’s worth” (e.g., loyalty points) or where the transaction is complimentary/gift-like, or where the taxable transaction is a consequence of another transaction not connected with the event.
Section 9(1) sets out when it applies, including:
- complimentary or gift arrangements where consideration is paid in money’s worth (or both);
- transactions that are a consequence of another transaction not connected with the event; and
- termination-related taxable transactions where the whole of the consideration mentioned in Section 9(1)(a)(ii) is forfeited.
Section 9(2) introduces a formula-based approach for “amount treated as gross receipts” for premises used as a hotel. It uses a ratio TGR ÷ N, where TGR is the total gross receipts for every taxable transaction in the relevant category (calculated under Section 8(3) and (4)), and N is the aggregate number of rooms on each day of the taxable period required to be provided under those transactions, including rooms used by guests and rooms not used due to no-shows. This effectively imputes a gross receipts value for transactions paid in money’s worth or otherwise outside the “wholly in money” regime.
Section 9(3) provides a fallback where TGR is zero (the extract is truncated, but the structure indicates a default valuation method). For practitioners, this underscores that the cess base may be imputed even where no cash is paid, to prevent avoidance through loyalty points, gifts, or internal arrangements.
How Is This Legislation Structured?
The Order is structured as follows:
- Enacting Formula: states the legal basis (section 5 of the Singapore Tourism (Cess Collection) Act 1972) and the making authority.
- Part/Sections 1–9:
- Section 1: citation and commencement (20 September 2022).
- Section 2: definitions and interpretive rules (including “money’s worth” and when consideration is paid in money).
- Section 3: identifies the tourism event.
- Section 4: sets the taxable period.
- Section 5: defines taxable transactions connected with the event and provides exclusions.
- Section 6: identifies the hotel operator as the tourism event establishment making the taxable transaction.
- Section 7: sets cess rates (30% vs 20%) by Schedule category.
- Sections 8–9: define gross receipts computation for different payment/consideration scenarios.
- THE SCHEDULE: lists hotel premises in Part 1 and Part 2, which determine the applicable cess rate.
Who Does This Legislation Apply To?
The Order applies to hotel operators who make legally enforceable arrangements for accommodation connected with the specified Formula 1 event during the taxable period. The statutory payer is the operator of the hotel (Section 6), and the taxable transactions must relate to premises specified in the Schedule and used as a hotel when accommodation is provided.
It also applies to termination scenarios: if an arrangement within Section 5(1)(a) is terminated, the resulting termination charges and forfeited deposits may be taxable (Section 5(1)(b), with gross receipts rules in Sections 8 and 9). However, the Order’s exclusions mean that certain accommodation connected to infectious disease orders and public-purpose arrangements may fall outside the cess regime.
Why Is This Legislation Important?
This Order is important because it operationalises tourism cess for a major, time-bound international event. For hotel operators and their advisers, the Order determines (i) whether a booking or arrangement is taxable, (ii) the applicable cess rate based on the hotel’s Schedule category, and (iii) how to compute the cess base where payment is not purely cash.
From an enforcement and compliance perspective, the inclusion of “money’s worth” and imputed gross receipts under Section 9 is particularly significant. It reduces opportunities to structure transactions to avoid cess by using loyalty points, complimentary arrangements, or non-cash consideration. The formulaic approach (TGR ÷ N) also provides a defensible method for valuation where direct consideration is not in money, which is likely to be central in any dispute about the cess base.
For practitioners advising on contract structuring, billing, and accounting treatment, the Order’s detailed gross receipts provisions (including early check-in/late check-out and additional sleeping facilities) highlight that ancillary charges can increase the cess base. Similarly, termination charges and forfeited deposits are not peripheral—they are expressly captured.
Related Legislation
- Singapore Tourism (Cess Collection) Act 1972
- Hotels Act 1954 (definition of “hotel”)
- Infectious Diseases Act 1976 (infectious disease orders and related concepts)
- Infectious Diseases (COVID-19 — Stay Orders) Regulations 2020 (referenced for the exclusion in Section 5(2)(a))
Source Documents
This article provides an overview of the Singapore Tourism (Cess Collection) (Formula 1 Singapore Airlines Singapore Grand Prix 2022) Order 2022 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.