A GUIDE TO TAXATION OF THE HOTEL – ACCOMMODATION AND TOURISM SECTOR
VOL 1, ISSUE 3 FY 2022-2023
What is a hotel?
The Income tax act defines an approved hotel as an industrial building licensed by the appropriate authorities for use, at a price, for boarding and lodging with at least;
- Ten bedrooms with minimum facilities of bed and breakfast, toilet and bath or shower room; and
- Restaurant or dining room for provision of food and beverages
What is an Accomodation?
According to the International Standard Industrial Classification of all Economic Activities (ISIC), Accommodation includes the provision of short-stay accommodation for visitors and other travellers. Also included is the provision of longer-term accommodation for students, workers and similar individuals. Some units may provide only accommodation while others provide a combination of accommodation, meals and recreational facilities
What are the main activities in the hotel- accommodation sector?
The main activities include;
- resort hotels
- suite / apartment hotels
- motor hotels