Scope of Charge
Property tax is charged on the property owner who has derived rental income form leasing of properties situated in Hong Kong and is computed at the standard rate of 15% on the net assessable value of the property.
From 1 April of each year to 31 March of the next year
The Basis of Assessment
The net assessable value shall be the current year's rental income (after deduction of rates paid by the owner), less an allowance of 20% for repairs and outgoing expenses. Any other expense than the foregoing cannot be deducted, except for irrecoverable rents, which can be deducted. Subsequently recovered rents shall be recognized as income in the year they are recovered.
A limited company, which owns properties to collect rents, is exempt from property tax and is subject only to profits tax.
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