The HKSAR Government resuming the collection of Hotel Accommodation Tax

On 28 February 2024, the Financial Secretary of Hong Kong, Mr. Paul Chan Mo-po, delivered 2024-25 Budget. He proposed to resume the collection of the hotel accommodation tax at a rate of 3% with effect from 1 January 2025. This proposed amendments is subject to review and approval by the Legislative Council of Hong Kong.

Subject to the enactment of the law, the Collector of Stamp Revenue will issue the first quarterly hotel accommodation tax (“HAT”) return to the operator of hotel / guesthouse on 2 January 2025. For the subsequent quarters, the Collector will issue the quarterly HAT returns on the first working day of April, July, October and January in each year.

The manager of that hotel / guesthouse should complete and sign the quarterly HAT return and then send it to the Collector within 14 days after the quarters ending on 31 March, 30 June, 30 September and 31 December in each year.

The normal 10% service charge added to the accommodation charge is exempted from HAT. For example, if the room rate of $1,000 includes 10% service charge and 3% HAT, the HAT is $26.55, which is calculated as: HK$$1,000 / 113% × 3% = HK$26.55.

Kaizen suggests you consult the professional advice of tax advisors before taking actions. Should you have any questions in relation to the proposals, please feel free to contact our CTAs in Hong Kong.

Benjamin HP Yen
Tax Partner
T: +852 2270 9768
E：benjamin.yen@kaizencpa.com

Vicki Wong
Tax Planning Manageress
T: +852 2270 9725
E: vicki.wong@kaizencpa.com