The TCI Government announced a number of measures in response to and contained in its COVID- 19 Stimulus Package.
Under the Emergency Powers (COVID-19) (Economic Relief Measures) Regulations 2020 (hereinafter the Regulations), the Government has approved the following:
- The payment of any tax (accommodation tax) which is due and payable on the 21st April 2020, in accordance with section 13 (1) of the Hotel, Restaurant & Tourism Tax Ordinance (hereinafter HRTT) is hereby waived; and
- The payment of any tax (accommodation tax) which is due and payable on 21st May 2020 and 21st June 2020, in accordance with section 13 (1) of the HRTT has be deferred until 21st July 2020.
Note that under section 4(2) of the Regulations no penalty shall be incurred in respect of the payment of taxes under sub-regulation (1)(b) if the taxes are paid in full on or before 21st July 2020.
- Completed Tax Waiver Request (TWR-2020) form;
- Provide proof that a remittance of tax was made during March 2020; and
- Provide proof of the number of employees currently on full pay, terminated or on reduced hours.
Kindly note, tax data submitted will be subject to Audit verification, by the Revenue Department, at a later date. Additionally, taxpayers will be required to provide a detailed written submission, by the end of July 2020, on how the HRTT waiver provided was utilized.
Lastly, although the waiver and deferral of the HRTT has been granted, Taxpayers are reminded that in accordance with section 24 (1) of the HRTT Legislation taxpayers are still required to remit tax data to the Revenue Department on the monthly return form.
The Revenue Department wishes for you to remain safe during this time and looks forward to your continued cooperation.