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HOTEL OCCUPANCY TAX GUIDE  

General
Hotel Occupancy Tax is charged under the authority of the Miscellaneous Taxes Act l976 and the Miscellaneous Taxes (Rates) Act l980 and their respective Amendments.

Scope
Hotel Occupancy Tax (introduced in l973) is charged on the proprietors of hotels licensed under the Hotels (Licensing and Control) Act l969. It is calculated as a percentage of the rack rate charged to hotel guests. The term ‘rack rate charge’ means the total charge made by an hotel to its guests for accommodation and includes meals where a separate charge has not been made.

Exemption
A person entitled under the Consular Relations Act 1971 or the Diplomatic Privileges Act 1980 is exempt from paying taxes on charges incurred by him for hotel accommodation.

Tax Period
Tax period means each and every calendar month.

Rate
The tax is charged at the rate of 7 1/4% and is payable on a monthly basis.

Payment
Every person chargeable to tax shall pay the tax due in respect of any tax period at the same time as he furnishes a return with respect of such tax period. Tax must be paid by the fifteenth of the month following the tax period.

Penalties
Tax returns filed late or underpaid are subject to a penalty. If tax, further tax, or additional tax is not paid at or before the time fixed by or under the legislation, a penalty for late payment will be levied. The penalty is 5% of the Payroll Tax due for each month or part of a month that the tax is unpaid or underpaid to a maximum of 30%. An additional tax equivalent to the amount of tax may also be levied.

Note
The information contained on this page is merely a guide for the taxpayer and is not a comprehensive statement of the Legislative requirements. These requirements are contained primarily in the Miscellaneous Taxes Act 1976, the Taxes Management Act 1976 and the Miscellaneous Taxes (Rates) Act 1980 as amended.  Bermuda Laws Online can be accessed at
www.bermudalaws.bm

Enquiries
Further enquiries may be made by contacting us.

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