Singapore’s hike in property tax on hotels next year will not apply to service residences, the Inland Revenue Authority of Singapore (IRAS) said yesterday.
Service residences, many of which provide food and cleaning services, have emerged as an alternative to hotels in recent years for business travellers on longer stays.
Singapore-listed Ascott Group, the largest service residence operator in Europe and Asia, has about 600 units for rent in Singapore.
The annual value of a hotel next year will be calculated based on 20 per cent of gross room receipts in the preceding year, and at 25 per cent in 2009, up from the current 15 per cent, according to the IRAS. Hotel owners have to pay 10 per cent of the annual value to IRAS as property tax. — Reuters
Source : Business Times - 25 Oct 2007