Hong Kong to resume hotel accommodation tax in 2025

It will reimpose HAT at a rate of 3%.

The government has announced plans to resume the Hotel Accommodation Tax (HAT) starting 1 January 2025. 

The decision, outlined in the 2024-25 Budget, will see HAT reimposed at a rate of 3%.

The tax applies to accommodation charges paid by guests at hotels and guesthouses. 

Previously reduced from 3% to 0% in 2008, the reinstated HAT is expected to generate $1.1b annually for the government, aiding in fiscal consolidation efforts without significantly impacting the general public or deterring tourists.

The Secretary for Financial Services & the Treasury will move the resolution in the Legislative Council on 23 October, with publication in the Gazette on 25 October.

To facilitate a smooth transition, the Financial Services & the Treasury Bureau and the Inland Revenue Department (IRD) are working closely with the hotel and guesthouse industry. 

The IRD is also providing support through briefings, informational materials, a dedicated hotline, and a helpdesk.