A Hotel Occupancy Tax of 7.25 per cent is charged to all hotel owners in Bermuda in accordance with the Miscellaneous Taxes Act - 1976 and the Miscellaneous Taxes (Rates) Act - 1980.
Scope of Hotel Occupancy Tax
Hotel Occupancy Tax is charged to all hotels owners licensed under the Hotels Licensing and Control Act – 1969 and is based on the total charge levied to guests for accommodation. Anyone starting a hotel must register to pay Hotel Occupancy Taxes seven days within the end of the month in which the hotel started operating.
Exemptions to the Hotel Occupancy Tax
Diplomats and consular staff are exempt from paying taxes on charges for hotel accommodation in Bermuda. Anyone eligible for a refund must submit an Application for Repayment of Hotel Occupancy Tax to Consular and Diplomatic Persons to the Office of the Tax Commissioner.
Paying Hotel Occupancy Tax
Tax payments are due on the 15th day of the month following the tax period. Payments are due each month. Late or underpaid taxes are subject to a penalty .