Property Tax
FAQs
Property Tax is charged on the owners of land and/or buildings in Hong Kong and is computed at the standard rate of 15% on the net assessable value of the property.
The Net Assessable Value is rental income (A) ,
Less –
irrecoverable rent (B)
rates paid by owners (C), and
20% statutory allowance for repairs & outgoings (20% x (A-B-C)) (D) .
Net Assessable Value = A-B-C-D
A year of assessment runs from 1 April to 31 March of the following year. Owner is required to pay current year’s final property tax (based on current year’s net assessable value less any provisional tax already paid) and a provisional tax for the following year (also based on the current year’s net assessable value).
You may apply in writing for holding over of provisional property tax on Form IR1121, on the following grounds:
– The assessable value for the provisional tax year is likely to be less than 90% of the assessable value for the preceding year.
– You have ceased, or will before the end of the provisional tax year, to be an owner of property and result in a reduction of the assessable value on which provisional tax was charged.
– 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 provisional tax year.
Time Limit – application should be lodged not later than 28 days before the due date for payment, or 14 days after the date of issue of the notice for payment, whichever is later.