Dubai Municipality Fee for Hotels & Holiday Homes

In the last blog post, we journeyed alongside Ahmed as he navigated the intricacies of the DTCM Tourism Dirham Fee and other tourism taxes and fees in Dubai. Continuing Ahmed's journey, today's post shifts the spotlight to another crucial aspect of doing business in the tourism industry in Dubai - The Municipality Fee. This guide aims to break down the ins and outs of Dubai Municipality Fees for hotels, holiday homes or Airbnb, and other similar establishments, ensuring a seamless, compliant operation.

Dubai Municipality Fee: An Overview

The Dubai Municipality Fee applies to the total sales of movie theatres and various hotel establishments, including hotels, hotel apartments, and guest houses. It also covers any other entity whose activity includes serving or providing alcoholic beverages. Each type of establishment has a set fee rate based on its total sales:

• Movie theatres: 10% of total ticket sales
• Alcoholic beverages: 30% of total sales
• Hotel and Tourism Establishments (as per their classification) and restaurants operating in Dubai: 7% of total sales.

How to Pay the Municipality Fee?

The payment process for the Dubai Municipality Fee has been made simple and efficient for business owners like Ahmed. To pay the fee:

• Login to the Dubai Municipality website's Revenue System.
• Apply for the service and retain the payment voucher.
• Proceed to pay the due fees.

Payment Methods and Options

The Dubai Municipality provides multiple channels for fee payment, adding to the convenience for business owners. These include:

• Smart applications: Dubai Municipality Application and Dubai Now Application
• Website: Dubai Smart Government Portal https://www.dm.gov.ae/easy-payments/
• Al Ansari Exchange: Here, you can make your payment in Cash or through a Due date Cheque. Please note that cheques should be made payable to Al Ansari Exchange.

Deadline for Payment

The deadline for paying the Municipality fee is the 15th of the month following the accrual month. To avoid penalties, it's crucial that businesses stay up-to-date with these payments.

Consequences of Non-payment

The Dubai Municipality imposes stringent penalties on businesses that fail to meet their fee obligations within the set deadline. Non-payment of the due fees by the 16th day of the following month can result in fines of not less than 10% of the unpaid fee value for the first-time offence, rising up to 40% for repeated offences. The fine, in all cases, will not be less than AED 1,000.

Like Ahmed, adhering to these guidelines and ensuring the prompt payment of all due fees is a critical aspect of running a successful holiday home business in Dubai's thriving tourism and hospitality sector. As a responsible business owner, understanding these fees, their deadlines, and penalties for non-compliance can help streamline operations and maintain a healthy relationship with the local authorities. Stay tuned for more updates on Ahmed's journey as he navigates the labyrinth of Dubai's tourism industry regulations.