Cess

Provided by EnterpriseOne

Cess is a tax of 1% levied on cessable items, such as hotel rooms
and towel charges, sold by tourist establishments. Here is a quick
overview of Cess and how it affects your business. It is not meant to
be an in-depth guide on Cess.

     What Is Cess?
     What Are Cessable Items?
     When Do I Have To Pay Cess?
     When Can I Collect Cess?
     How Do I Register?
     How Do I File My Cess Returns?
     When Do I Pay Cess Collected To IRAS?
     Where Can I Get Help?

What Is Cess?

•  Cess is a tax of 1% levied on all cessable items sold by tourist
     hotels, tourist food establishments and tourist public houses.

•  Cess is collected by the Singapore Tourism Board ( STB ) under
     the Singapore Tourism ( Cess Collection )   Act. The Inland
     Revenue Authority of Singapore (IRAS) administers and collects
     Cess on behalf of STB.

•  With effect from 1 July 2007, Cess has been reduced to
     0%. Submission of Cess forms for periods up to 30 June 2007
     still applies.
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What Are Cessable Items?

•  Good   and services that  are subject to Cess are known as
     cessable items.

•  They include hotel rooms, towel charges, sale of food and drink
     and hire of coats and ties. Items such as laundry and telephone
     services are non-cessable.
      See: List of cessable items
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When Do I Have To Pay Cess?

•  You have to pay Cess when you buy goods or services from
     tourist establishments.

•  Cess does not replace GST or any other tax. It is an additional
     tax.

When Can I Collect Cess?

•  When your business is:
     - a tourist hotel
     - a tourist food establishment
     - a tourist public house (selling liquor to the public)
       See: Businesses that must collect Cess
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How Do I Register?

•  From September 2005, you will be automatically registered for
     Cess collection if your business is:
     - a tourist hotel
     - a tourist food establishment
     - a tourist public house (selling liquor to the public)

•  Registration is free but you need to place a security deposit.

      Note: To help businesses tide over the tourism downturn due to SARS, the need
                to a security deposit worth up to 5 months of Cess colection has been
                waived until December 2005.

•  You need to de-register from Cess if you are no longer entitled
     to collect Cess. For instance, when your business has ceased
     or you have given up your Public House Liquor Licence.

      See: De-registration of Cess
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How Do I File My Cess Returns?

•  You need to file Cess returns quarterly, monthly and yearly.

Description	Form	When to File
Cess Payment Form (All establishments)	F2 (download- WORD)	Quarterly. Forms must be received within one month from the end of each quarter.
Return for Food & Beverage Establishments (Except Hotels)	Form R-FB (download- WORD)	Monthly. Forms must be received by the 10th of the following month.
	Form ACR (download- WORD)	Yearly. Forms must be received by 15th May for Cess collected in the previous year.
Return for Hotel Rooms / Food & Beverage (For Hotels only)	Form H-RM (download- WORD) and Form H-FB (download- EXCEL)	Monthly. Forms must be received by the 10th of the following month.
Return for Hotel Establishments	Form ACRH (download- WORD)	Yearly. Forms must be received by 15th May for Cess collected in the previous year.

       See: Completion & Submission of your returns / forms
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When Do I Pay Cess Collected To IRAS?

•  Cess is paid quarterly at the same time as submitting your
     Cess Payment Form F2 (WORD).

     You should always pay on time to avoid penalty fees.

     See: Making payments
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Where Can I Get Help?

•  Visit these websites and web resources for more in-depth
     information on Cess or consult with your accountant.
     - IRAS website on Cess
     - Frequently Asked Questions on Cess
     - Download all tax forms

•  You can also contact IRAS:
     - Tel:    (65) 6351 3647 / 49
     - Fax:    (65) 6351 2828
     - Email: irascess@iras.gov.sg
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This article is a simplified write-up of taxation in Singapore and is not intended to
replace advice from a tax professional. You should speak to your accountant or
contact the Inland Revenue Authority of Singapore (IRAS) for more information.