Statute Details
- Title: Singapore Tourism (Cess Collection) (Formula 1 Singapore Airlines Singapore Grand Prix 2025) Order 2025
- Act Code: STCCA1972-S600-2025
- Legislation Type: Subsidiary legislation (SL)
- Authorising Act: Singapore Tourism (Cess Collection) Act 1972
- Enacting Formula: Made under section 5 of the Singapore Tourism (Cess Collection) Act 1972
- Commencement: 18 September 2025
- Current version status: Current version as at 27 March 2026
- Legislative instrument number: S 600/2025 (SL 600/2025)
- Tourism event covered: Formula 1 Singapore Airlines Singapore Grand Prix 2025
- Taxable period: 2 October 2025 to 5 October 2025 (both dates inclusive)
- Key provisions: Sections 2 (definitions), 3 (tourism event), 4 (taxable period), 5 (taxable transactions), 6 (tourism event establishment), 7 (cess rates), 8 (gross receipts where consideration paid wholly in money), 9 (gross receipts in other cases), and the Schedule (premises categories)
What Is This Legislation About?
The Singapore Tourism (Cess Collection) (Formula 1 Singapore Airlines Singapore Grand Prix 2025) Order 2025 is a targeted regulatory instrument that sets the rules for collecting a tourism cess in connection with a specific major event: the Formula 1 Singapore Airlines Singapore Grand Prix 2025. In practical terms, it identifies which hotel-related transactions are subject to the cess, the time window during which those transactions are taxable, the rate of cess depending on the hotel premises category, and how to compute the “gross receipts” on which the cess is charged.
While the underlying framework for the tourism cess is found in the Singapore Tourism (Cess Collection) Act 1972, this Order “turns on” the cess for the 2025 Formula 1 event and specifies the operational details. It is therefore best understood as an event-specific implementation order: it does not create a new tax concept from scratch, but rather applies the Act’s cess mechanism to defined hotel arrangements during a defined taxable period.
For practitioners, the Order is particularly important because it focuses on accommodation arrangements made by hotel operators and provides detailed rules for calculating gross receipts where consideration is paid in money, and where consideration is not wholly in money (for example, where points, rewards, or other “money’s worth” are involved, or where the transaction is complimentary/gift-like). It also includes limited exemptions linked to infectious disease orders under the Infectious Diseases Act 1976.
What Are the Key Provisions?
1. Definitions and scope (Sections 2 and 3)
Section 2 defines key terms used throughout the Order. Notably, it defines “accommodation” (room with bed or sleeping facilities), “hotel” by reference to the Hotels Act 1954, “operator” (the person responsible for day-to-day operations of the hotel), and “money’s worth” (points, rewards or similar things under a loyalty programme that may be used to redeem accommodation). It also clarifies what counts as “consideration paid in money” (including cash, cheques, vouchers with cash value or discounts, card payments, digital wallet transfers, and combinations).
Section 3 identifies the tourism event to which the Order relates: the Formula 1 Singapore Airlines Singapore Grand Prix 2025. This matters because the cess is not imposed generally on all hotel transactions; it is imposed only on transactions that are “connected with” the specified event and fall within the defined taxable period.
2. Taxable period (Section 4)
Section 4 sets the taxable period connected with the event as 2 October 2025 to 5 October 2025 (inclusive). Transactions outside this window are not within the cess regime established by this Order (even if they are otherwise connected to the event).
3. Taxable transactions and exclusions (Section 5)
Section 5 is the core charging provision for identifying what transactions are taxable. In summary, a “taxable transaction” connected with the tourism event (on which cess is payable) includes:
- A legally enforceable arrangement that is wholly or in part for accommodation provided or to be provided during the taxable period, and at premises specified in Part 1, 2 or 3 of the Schedule if used as a hotel when the accommodation is provided; and
- Where one party to the arrangement is the operator of the hotel.
- Termination of such an arrangement is also treated as a taxable transaction.
Section 5(2) then provides specific exclusions. The most notable is an exemption for arrangements where the accommodation is provided (or to be provided) to an individual in connection with an order under section 15 or 17(3) of the Infectious Diseases Act 1976 relating to an infectious disease. The exemption applies where either (A) one party is the Government or a public-purpose body established under a public Act, or (B) the premises are designated by such a body as a facility providing accommodation to relevant crew members.
For practitioners advising hotels, the practical takeaway is that cess liability is triggered by the combination of (i) a legally enforceable accommodation arrangement, (ii) the accommodation being for the taxable period, (iii) the premises being in the Schedule and used as a hotel, and (iv) the operator being a party to the arrangement—subject to the narrow infectious disease-related exclusion.
4. Who makes the taxable transaction (Section 6)
Section 6 identifies the “tourism event establishment making the taxable transaction” as the operator of the hotel. This is important for compliance and enforcement: it clarifies that the operator is the entity responsible for the cess in relation to the taxable transactions described in section 5.
5. Cess rates by Schedule category (Section 7)
Section 7 sets the cess payable as a percentage of gross receipts, tiered by the Schedule category of the premises used as a hotel:
- 30% for premises specified in Part 1 of the Schedule
- 20% for premises specified in Part 2
- 15% for premises specified in Part 3
This tiering is a central commercial feature. It means that the same booking behaviour (for example, early check-in, late check-out, or no-shows) can produce different cess outcomes depending on which scheduled premises category the hotel falls under.
6. 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 an anti-avoidance clarification: a taxable transaction may still fall within section 8 even where the transaction relates to another transaction involving “money’s worth,” provided that (i) none of the consideration for the earlier transaction is forfeited as a result of the later transaction, and (ii) the later transaction’s consideration is paid for wholly in money.
Section 8(3) defines gross receipts for the accommodation arrangement (the “T1” transaction) as:
- the consideration paid for the taxable transaction; and
- all additional payments, including sums paid for early check-in/late check-out and sums paid for additional sleeping facilities in the same accommodation.
Section 8(4) defines gross receipts for termination-related taxable transactions as:
- all charges paid for termination; and
- all deposits forfeited because of the termination.
For billing and accounting teams, section 8 is therefore not limited to the room rate. It expressly captures certain ancillary charges and termination economics.
7. Gross receipts in other cases (Section 9)
Section 9 governs gross receipts where section 8 does not apply—particularly where consideration is paid in “money’s worth,” where the transaction is described as complimentary or a gift, or where the taxable transaction is a consequence of another transaction not connected with the event. It also addresses cases where consideration is forfeited.
Section 9(2) introduces a formula-based approach for calculating the amount treated as gross receipts for premises used as a hotel (called “H”). The formula is expressed as TGR ÷ N, where:
- TGR is the total gross receipts for every taxable transaction mentioned in section 8(1) in relation to H (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 the relevant taxable transactions, and which were either used by guests or not used due to no-shows.
This is a significant compliance point: where consideration is not wholly in money, the Order does not simply take the “stated value” of the non-cash consideration. Instead, it allocates gross receipts using an operational denominator (rooms required and actually used/no-show) and a numerator derived from cash-based gross receipts for the hotel during the taxable period.
Section 9(3) provides a special rule where TGR is zero (the extract indicates a further calculation method, though the remainder is truncated in the provided text). Practitioners should therefore obtain the full text of section 9 to ensure correct handling where there are no cash-based gross receipts for the hotel in the relevant period.
How Is This Legislation Structured?
The Order is structured as follows:
- Enacting Formula: states the legal basis (powers under section 5 of the Act) and that the Minister makes the Order.
- Section 1: citation and commencement (18 September 2025).
- Section 2: definitions, including “hotel,” “operator,” “money’s worth,” “taxable period,” and the meaning of “consideration paid in money.”
- Section 3: identifies the tourism event (Formula 1 Singapore Airlines Singapore Grand Prix 2025).
- Section 4: sets the taxable period (2–5 October 2025).
- Section 5: defines taxable transactions connected with the event, including terminations, and sets out exclusions for certain infectious disease-related accommodation arrangements.
- Section 6: identifies the tourism event establishment making the taxable transaction (the hotel operator).
- Section 7: sets cess rates by Schedule part (30%/20%/15%).
- Sections 8 and 9: provide gross receipts computation rules depending on whether consideration is wholly in money or not.
- THE SCHEDULE: lists the premises categories (Parts 1, 2, 3) that determine the cess rate.
Who Does This Legislation Apply To?
The Order applies to hotel operators (as defined by section 2) who make legally enforceable accommodation arrangements connected with the Formula 1 Singapore Airlines Singapore Grand Prix 2025 during the taxable period. The taxable transactions are limited to accommodation provided (or to be provided) at premises specified in the Schedule and used as a hotel when the accommodation is provided.
In addition, the Order contains a narrow exclusion affecting certain accommodation arrangements made in connection with infectious disease orders under the Infectious Diseases Act 1976. Where those conditions are met, cess is not payable for the excluded arrangements (and their terminations).
Why Is This Legislation Important?
This Order is commercially and operationally important because it directly affects hotel pricing, invoicing, and accounting during a high-demand event window. The cess is calculated as a percentage of gross receipts, and the gross receipts base includes not only the room charge but also specified ancillary payments (early check-in, late check-out, and additional sleeping facilities) and termination-related charges/deposits.
From a legal compliance perspective, the Order’s most consequential features are: (i) the identification of taxable transactions (including terminations), (ii) the tiered cess rates tied to the Schedule category of the premises, and (iii) the complex gross receipts methodology for non-cash or “money’s worth” consideration and complimentary/gift-like arrangements. Hotels and their counsel should therefore pay close attention to how bookings are structured (cash vs loyalty points vs mixed consideration) and how no-shows and room allocation are recorded, because these facts can determine the gross receipts computation under section 9.
Finally, the infectious disease exclusion demonstrates that the cess regime is not absolute; it is designed to accommodate public health measures. Practitioners should ensure that any reliance on the exclusion is supported by documentation showing the relevant Infectious Diseases Act order and the applicable Government/public-purpose designation criteria.
Related Legislation
- Singapore Tourism (Cess Collection) Act 1972 (authorising framework for tourism cess)
- Hotels Act 1954 (definition of “hotel”)
- Infectious Diseases Act 1976 (basis for certain accommodation exemptions)
Source Documents
This article provides an overview of the Singapore Tourism (Cess Collection) (Formula 1 Singapore Airlines Singapore Grand Prix 2025) Order 2025 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.