PROPERTY TAX
General information
Taxpayers have the obligation to complete and submit a tax return for reporting rental income from letting properties situated in Hong Kong.
Property tax returns (BIR57) are issued to joint owners. If you are the sole owner of the property, you should report your rental income in Tax Return – Individuals (BIR60).
The return has to be filed to IRD within 1 month from the date of issue of the Tax Return.
Late filing of tax return, it is an offence. It will lead to a fine or even prosecutions.
Basis period
From 1 April to 31 March of the following year.
Tax calculation
Property tax is computed at the standard rate (2008/09 onwards: 15%) on the net assessable value of the property for the relevant year of assessment.
The net assessable value is computed as follows:
| [A] | Rental Income |
| [B] Less: | Irrecoverable Rent/td> |
| [C] | (A-B) |
| [D] Less: | Rates paid by owner(s) |
| [E] | (C-D) |
| [F] Less: | Statutory allowance for repairs and outgoings (E x 20%) |
| Net Assessable Value (E-F) |