Hong Kong Tax Agency Posts FAQs on Hotel Accommodation Tax

The Hong Kong Inland Revenue Department Dec. 27 posted online FAQs on the resumption of the hotel accommodation tax (HAT). Topics covered include: 1) the 3 percent HAT rate effective Jan. 1, 2025; 2) clarification that HAT applies to accommodation charges for lodging, excluding service charges, dining, facility use, business services, concierge services, and consumables; 3) exemptions for long-term stays and service apartments, including room thresholds and business setup; 4) HAT computation scenarios, recordkeeping requirements, adjustments for extended accommodations or force majeure situations, online travel agent (OTA) payments, and accommodation charges; and 5) filing, payment, and enforcement. [Hong Kong, Inland ...