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:

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.

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