Property Tax

Hong Kong property tax is charged on persons who are the owners of any land or buildings located in Hong Kong and who earn rental income from this land or those buildings. Certain additional deductions (e.g. mortgage interest) are available when the taxpayer concerned elect for personal assessment, subject to certain conditions and proper application.

 

How is Property tax Calculated?

 

It is computed at the standard rate of 15% on the net assessable value of the property for the relevant year of assessment. A year of assessment runs from 1 April to 31 March of the following year. It is computed by following a tax formula that includes the following variables: rental income, irrecoverable rent, rates paid by the owner, and statutory allowance for repairs and outgoings. To this net assessable value (“NAV”) the standard rate is applied unless personal assessment is chosen.

 

Holdover of Provisional Property Tax

 

According to tax authorities, an application for holding over of provisional property tax may be made on one of the following grounds:

  • The assessable value for the year of assessment for which provisional tax was charged is, or is likely to be, less than 90% of the assessable value for the preceding year or of the estimated assessable value in respect of which you are liable to pay provisional tax.
  • For example, if you are assessed to provisional property tax based on an assessable value of $300,000, you may apply for holding over of payment of provisional tax if the assessable value for the relevant year is, or is likely to be, less than $270,000.
  • Full particulars of the rental received and receivable should be furnished in support of your application.
    You have ceased, or will before the end of the year of assessment for which provisional tax was charged cease, to be an owner of property, and the cessation of ownership will result in a reduction of the assessable value on which provisional tax was charged.
  • Full particulars of the cessation of ownership and the rental received and receivable should be furnished in support of the application.
    You have elected to be personally assessed for the year of assessment for which provisional tax was charged, and the election is likely to reduce your liability to tax.
    You have objected to your property tax assessment for the year preceding the year of assessment for which provisional tax was charged.

We can advise our clients on their property tax matters and stamp duty. Meanwhile, we help clients to have the property tax filing on an appropriate tax return within the deadlines to avoid late filing fees or penalties.

 

Contact us to learn more about our services

 

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About Us

HKWJ Tax Law & Partners Limited is an international boutique firm providing its clients tailor-made tax services, audit, accounting & company incorporation and advisory services in Hong Kong and around the globe. HKWJ Tax Law & Partners Limited is a proud member of the HKWJ Group.

Our Services

Our services include not only tax law advice on beneficial structures for corporations and private individuals, but also tax compliance services, such as Hong Kong tax returns, Hong Kong employers returns and Hong Kong transfer pricing documentation. When required, we assist our clients with their tax disputes, investigation or litigation that may arise during the course of their businesses or their private life. Within the HKWJ Group, various other services are provided such as business advisory, consultancy services, digital marketing, and human resources solutions.

In addition, we are much more than a tax firm as we offer accounting & audit services, incorporation of company & company secretarial services and process agent services. All our services are carried with the utmost confidentiality and respecting our strict privacy policy.

Our Vision

The tax system in Hong Kong is simple but not straight forward. Globalisation has resulted into Hong Kong accepting various international tax standards, making its tax laws more complicated. At HKWJ Tax Law & Partners Limited, we are guiding our clients through this challenging tax law climate, thereby contributing to the growth of their success. Only together, we all grow.

Our People

Our accountants and tax law advisors have all a professional background in either accounting or tax laws and gained in-depth accounting & tax knowledge from large accounting & law firms. As your trusted accounting and tax advisor, we can make your taxes issues less stressful and worrisome, and hopefully, make them even go away. In addition, our in-house consultants can assist with business advisory services, risk management, compliance, digital marketing, and human resources solutions.

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