Law No. 3 of 2021On Imposing Destination Fee in Emirate of Ras Al-Khaimah We, Saud Bin Saqr Bin Mohamed Al Qasimi Ruler of Ras Al Khaimah After perusal of the Constitution; And Federal Law No. 3 of 1987 on issuing Penal Code, as amended; And Federal Law No. 11 of 1992 on issuing Civil Procedures Code, as amended; And Federal Law No. 35 of 1992 on issuing Criminal Procedures Code, as amended; And Emiri Decree No. 5 of 2011 on Establishing Ras Al Khaimah Tourism Development Authority, as amended; And after the approval of the Executive Council; Have promulgated the following Act: Article (1) In implementation of the provisions of this Law, the following phrases and words shall have the meanings indicated opposite each of them, unless the context of text requires otherwise: Emirate: Emirate of Ras Al Khaimah. Ruler: Ruler of the Emirate. Authority: Ras Al Khaimah Tourism Development Authority. President: Chief Executive Officer of the Authority. Sales: Services rendered by hotel establishments to their customers and visitors including rooms or hotel apartment fare, food, drinks and recreation activities prices and all other services rendered under tourist custom. Article (2) The provisions of this law shall apply to all hotel establishments in the emirate including those existing in RAK Economic Zones. Article (3) A fee named Destination Fee shall be collected at rate of 7% of total value of sales of hotel establishments to guests and visitors thereof paid already or shall be paid whatsoever the method of payment. The value of this fee shall be added to the total amount that shall be paid by the commodity purchaser or service recipient and it shall be referred to in articles of this law as The Fee. Article (4) Issuance of invoice shall be the incident that creates the fee. If the establishment neglected issuance thereof, the creating incident shall be the delivery of the sold product or service performance. Article (5) The following establishments shall be considered hotel ones: 1- Hotels, hotel apartments, lodges, holiday houses and different facilities thereof. 2- Tourist camps that provide overnight accommodation. 3- Restaurants and nightclubs existing within establishments referred thereto in the previous article that practice their activity by license independent of the license of such establishments. 4- All authorities, companies and corporations operate within the hotel establishment, or render their services or activities to guests and visitors of the establishment. 5- Restaurants licensed to serve alcoholic drinks including restaurants of clubs or any other authorities. 6- Authorities licensed to operate in the emirate in the field of operating land and sea trips and their activity includes serving alcoholic drinks 7- Any authority renders services to guests and visitors of hotel establishments and is independent thereof. Article (6) The Authority may exempt sales of any hotel establishment from being subject to this fee, according to the terms and controls issued by resolution from the Authority Article (7) The establishment, subject to the provisions of this law, shall commit to the following: 1- Transfer the collected or due fees to the Authority before the end of the fourteenth day of the following month of their collection or due. 2- Maintain regular accounting books and records in which all its operations are recorded according to the standard accounting principles. 3- Keep the accounting records for not less than five years. 4- State value of due fee and any other fees in the announced price of the sales and record this clearly in the invoice issued to the guest or service recipient and in all accounting documents, records and books and financial systems used thereby. 5- Prepare monthly statement of all sales thereof and send the same to the Authority on due fee payment date. 6- Approve its closing accounts at the end of each fiscal year by an account auditor licensed to work in the emirate. 7- Provide the Authority with closing accounts and balance sheets within maximum period of six months from the end date of the establishment’s fiscal year. Article (8) If the establishment stopped operating permanently or temporary, the Authority should be notified within one week of this stoppage and reasons thereof and transfer the collected fee for the period preceding this stoppage along with supporting papers and documents. Notification shall be by means specified by the Authority. Article (9) Commitment of any of the following acts shall be considered as evading from fee payment: 1- Failure to abide by the provisions of article 7 of this law. 2- Manipulate accounting statements or provide incorrect, forged or incomplete information, records or statements in respect of sales and percentage due from the fee. 3- Obstruct or prevent the competent employees of the Authority from conducting works of monitoring, inspection and auditing. 4- Notify of permanent or temporary stoppage of practicing the activity on contrary with reality. 5- Perform any other act that would evade fee payment. Article (10) Without prejudice to any more severe penalty stipulated by other law, anyone commits an act of evasion or violated provisions of this law or resolutions issued in implementation thereof, shall be punished by the financial fine stated in violations & fines schedule attached to this law. The fine shall be doubled in case of repeating the same violation during one year from the date of committing the previous one. Imposing this fine shall not prevent collecting the fee due for the Authority. Article (11) In addition to the fine penalty referred to in article (10), the Authority shall be entitled, in coordination with competent authorities in the emirate, to take any of the following procedures against the violating establishment: 1- Close the establishment or one of the facilities thereof for a period not exceeding three months. 2- Close the establishment till it removes reasons of violation. Article (12) Collection of unpaid amounts of fee and fines due to the Authority shall be by a claim made by the President stating therein name of the debtor establishment, legal representative thereof and fee or fine value. This claim shall be considered as writ of execution to be executed by the competent execution judge according to Civil Procedures Law. Article (13) It is permissible to appeal with the President against taken resolutions or procedures under this law within fifteen days from the date of appealed resolution or procedures notice. This appeal shall be decided on within thirty days from the date of submitting it by a committee formed by the President and the issued resolution on the appeal shall be final. Article (14) The employees of the Authority shall be empowered with law officer capacity in proving acts that occur in violation of provisions of this law or resolutions issued in implementation thereof. For this purpose, they are entitled to enter the establishments or any of their facilities, preview books, records, documents and financial systems held thereby and seize the same, make necessary seizure reports in this regard. Article (15) In order to apply provisions of this law, the Authority is entitled to seek assistance of government departments and authorities in the emirate, including RAK Police General Headquarters. Article (16) The proceeds of fee and fines resulted from applying this law shall devolve upon Authority’s account and it may allocate a percentage not less than 20% of fee proceeds to support hotel establishments in the emirate and if the percentage exceeds this, it should be approved by the Ruler. Article (17) The President shall issue necessary resolutions and instructions to implement provisions of this law. Article (18) This Act shall come into force as date of first of May 2021 and be published in the Official Gazette. Saud Bin Saqr Al Qasimi, Ruler of RAK Issued by us on this day eighth of Sha’ban 1442 H. Corresponding to twenty second of March 2021 G.