Statute Details
- Title: Singapore Tourism (Cess Collection) (Formula 1 Singapore Airlines Singapore Grand Prix 2025) Order 2025
- Act Code: STCCA1972-S600-2025
- Legislative Type: Subsidiary legislation (Order) made under the Singapore Tourism (Cess Collection) Act 1972
- Authorising Act: Singapore Tourism (Cess Collection) Act 1972
- Enacting/Legal Basis: Powers conferred by section 5 of the Singapore Tourism (Cess Collection) Act 1972
- Commencement: 18 September 2025
- Current Version Status: Current version as at 27 March 2026 (per provided extract)
- Legislation Number: No. S 600 (SL 600/2025)
- Tourism Event Covered: Formula 1 Singapore Airlines Singapore Grand Prix 2025
- Key Provisions (from extract): Sections 2, 3, 4, 5, 6, 7, 8, 9; 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 “cess” collection order. In practical terms, it imposes a tourism-related levy on certain hotel accommodation arrangements connected with a specific major event: the Formula 1 Singapore Airlines Singapore Grand Prix 2025.
While the underlying cess framework is set by the Singapore Tourism (Cess Collection) Act 1972, this Order “activates” the cess for the particular tourism event and specifies the taxable period, the types of transactions that trigger cess, the entity responsible for making taxable transactions, and the cess rates. It also contains detailed rules for calculating “gross receipts” (the base on which the cess percentage is applied), including special treatment where consideration is not paid wholly in money.
The Order is therefore not a general hotel tax. It is event-specific and time-limited. It focuses on legally enforceable arrangements for hotel accommodation during the defined taxable period, and it applies to the operator of the relevant hotels listed in the Schedule.
What Are the Key Provisions?
1. Definitions and scope of concepts (Section 2)
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, and “money’s worth” (points, rewards, or similar items under loyalty/member programmes that can be redeemed for accommodation). It also defines “operator” of a hotel as the person responsible for day-to-day operations (either a sole proprietor or a corporate/unincorporate body).
Section 2(2) further clarifies when consideration is treated as being “paid in money”. This includes cash/cheques/vouchers with cash value or discounts, credit/debit card facilities, digital wallet transfers, or combinations of these. This distinction matters because the Order uses different gross receipts rules depending on whether consideration is paid wholly in money (Section 8) or not (Section 9).
2. The tourism event and taxable period (Sections 3 and 4)
Section 3 identifies the tourism event: the Formula 1 Singapore Airlines Singapore Grand Prix 2025. Section 4 then sets the taxable period connected with that event: 2 October 2025 to 5 October 2025 (inclusive). The cess regime applies only to taxable transactions connected with the event that relate to accommodation provided (or to be provided) during that window.
3. Taxable transactions and exclusions (Section 5)
Section 5 is central. It specifies which arrangements are “taxable transactions” connected with the tourism event on which cess is payable.
Section 5(1): Subject to Section 5(2), taxable transactions include a legally enforceable arrangement that is wholly or in part for accommodation provided (or to be provided) at any time during the taxable period, at premises specified in Part 1, 2 or 3 of the Schedule, if used as a hotel, where one party to the arrangement is the operator of the hotel.
Section 5(1)(b): It also includes termination of an arrangement mentioned in Section 5(1)(a). This is important for practitioners dealing with cancellations, forfeitures, and deposits: the cess base may include charges and forfeited deposits arising from termination.
Section 5(2): Infectious disease-related carve-outs
The Order excludes certain arrangements from being taxable transactions. Specifically, Section 5(2)(a) excludes 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, and either:
- one party is the Government or a body established under a public Act for a public purpose; or
- the premises are designated by a public body as a facility providing accommodation to specified crew members of ships.
Section 5(2)(b) also excludes termination of such excluded arrangements. This carve-out reflects a policy choice to avoid imposing event tourism cess on accommodation arrangements made under public health directions.
4. Who is responsible: the “tourism event establishment” (Section 6)
Section 6 identifies the tourism event establishment making the taxable transaction: the operator of the hotel. In other words, the cess liability is tied to the hotel operator (as defined in Section 2) for the premises listed in the Schedule.
5. Cess rates by Schedule category (Section 7)
Section 7 sets the cess payable on taxable transactions connected with the event. The rate depends on which part of the Schedule the hotel premises fall into:
- 30% of gross receipts for premises specified in Part 1 used as a hotel;
- 20% for premises specified in Part 2 used as a hotel;
- 15% for premises specified in Part 3 used as a hotel.
Practically, the Schedule classification is decisive. For compliance, counsel should confirm the hotel’s listing and which part it falls under, because the cess rate can materially change the liability.
6. Gross receipts where consideration is paid wholly in money (Section 8)
Section 8 applies when consideration for the taxable transaction is paid wholly in money. It defines “gross receipts” 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 providing additional sleeping facilities in the same accommodation.
For taxable transactions involving termination (Section 5(1)(b)), Section 8(4) provides that gross receipts include:
- all charges paid for the termination; and
- all deposits forfeited because of the termination.
Section 8(2) also contains an anti-avoidance/clarification rule: it includes a taxable transaction relating to another transaction where the earlier transaction’s consideration may include “money’s worth”, but the later transaction’s consideration is paid wholly in money and none of the earlier consideration is forfeited as a result of the later transaction.
7. Gross receipts in other cases (Section 9)
Section 9 applies to taxable transactions where consideration is not paid wholly in money, and it also addresses certain complimentary/gift scenarios and forfeiture consequences.
Section 9(1) applies to:
- taxable transactions described as complimentary or gift where consideration is paid in “money’s worth” or both money and money’s worth; or where the taxable transaction is a consequence of another transaction not connected with the event; and
- termination taxable transactions where the whole of the consideration mentioned in Section 9(1)(a)(ii) is forfeited as a result of that taxable transaction.
Section 9(2) then sets a formula-based approach to determine the amount treated as gross receipts for premises used as a hotel (called “H”). The formula indicated in the extract is TGR ÷ N, where:
- TGR is the total amount of gross receipts for every taxable transaction mentioned in Section 8(1) relating 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.
Section 9(3) provides a fallback where TGR is zero, though the extract truncates the remainder of the provision. For practitioners, this means that the calculation methodology may shift depending on whether there are any taxable transactions with money consideration from which TGR can be derived.
How Is This Legislation Structured?
The Order is structured as a short, event-specific instrument with a standard legislative flow:
- Enacting Formula and commencement (Section 1): citation and when the Order comes into operation.
- Definitions (Section 2): key terms including “accommodation”, “money’s worth”, “operator”, and the treatment of “consideration paid in money”.
- Event and time window (Sections 3 and 4): identifies the Formula 1 Grand Prix 2025 and sets the taxable period (2–5 October 2025).
- Taxable transactions (Section 5): defines what arrangements are taxable and provides infectious disease exclusions.
- Responsible establishment (Section 6): identifies the operator of the hotel as the entity making taxable transactions.
- Cess rates (Section 7): tiered percentages based on Schedule parts (30%/20%/15%).
- Gross receipts rules (Sections 8 and 9): detailed calculation mechanics depending on whether consideration is wholly in money or not, including termination deposits/charges and formula-based valuation for complimentary/gift/money’s worth scenarios.
- Schedule: lists premises and divides them into Parts 1, 2, and 3, which directly determine the cess rate.
Who Does This Legislation Apply To?
The Order applies to operators of hotels whose hotel premises are specified in the Schedule (Parts 1, 2, or 3) and that enter into legally enforceable arrangements for accommodation connected with the Formula 1 Singapore Airlines Singapore Grand Prix 2025 during the taxable period (2–5 October 2025).
In practice, the compliance burden will fall on hotel operators and their finance/tax teams, because the taxable transactions are defined by reference to arrangements where one party is the operator. The infectious disease carve-out means that certain Government/public health accommodation arrangements under the Infectious Diseases Act 1976 are excluded, but otherwise the Order is aimed at typical hotel booking and cancellation flows during the event window.
Why Is This Legislation Important?
This Order is important because it converts a general statutory cess framework into a concrete, enforceable levy for a high-demand event. For hotels, it affects pricing, booking terms, cancellation policies, and accounting for deposits, forfeitures, and ancillary charges (such as early check-in and late check-out).
From a legal and compliance perspective, the most significant practical issues are:
- Schedule classification: the cess rate (30%/20%/15%) depends on which part the premises fall under.
- Transaction mapping: taxable transactions include both accommodation arrangements and their termination, so cancellation and forfeiture mechanics must be assessed for cess impact.
- Consideration type: the gross receipts base differs where consideration is wholly in money (Section 8) versus where it involves “money’s worth”, complimentary/gift arrangements, or certain forfeiture consequences (Section 9).
- Public health exclusions: infectious disease-related accommodation under the Infectious Diseases Act 1976 may be excluded, requiring careful documentation where such scenarios arise.
For practitioners advising hotel operators, event booking platforms, or hospitality groups, the Order’s detailed definitions and gross receipts rules make it essential to review booking systems, loyalty programme redemption practices, and cancellation/deposit terms to ensure correct cess computation for the taxable period.
Related Legislation
- Singapore Tourism (Cess Collection) Act 1972
- Hotels Act 1954 (definition of “hotel”)
- Infectious Diseases Act 1976 (infectious disease exclusions referenced in Section 5)
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.