Property Tax in Hong Kong

Property Tax in Hong Kong

Property Tax is charged on the owners of land and/or buildings in Hong Kong and is computed at the standard rate on the net assessable value of the property. The standard rate is 15% from the year of assessment 2015/16 onwards.

The assessable value is computed by reference to the actual consideration payable to the owner in respect of the right of use of the property. The net assessable value is the assessable value, after deduction of rates agreed to be paid and paid by the owner (but not other payments, e.g. government rent and management fee), less a 20% statutory allowance for repairs and outgoings.

Which type of properties are taxable under the Property Tax?

Property Tax applies to the rental income generated from letting out real property, which includes:

  • Residential Property: Rental income from apartments, houses, and other residential units.
  • Commercial Property: Rental income from offices, shops, and other commercial spaces.

Allowable Deductions

Property owners can deduct certain allowable expenses from the rental income before calculating the Property Tax liability. These expenses may include:

  • Rates and Government Rent: Payments made to the government for property rates and rent.
  • Management Fees: Fees paid for property management services.
  • Repairs and Maintenance: Costs incurred for repairing and maintaining the property.

Filing Process

Owners of properties subject to Property Tax must complete and submit a tax return (Form IR56F) to the Inland Revenue Department (IRD). The process involves:

  • Gathering Information: Collect relevant documents, such as rental agreements and receipts of expenses related to the property.
  • Completing the Form: Fill out the tax return form, indicating the rental income and any allowable expenses.
  • Submission: File the tax return either online or through paper submission to the IRD.


The tax return should be filed:

  • On or before April 30 for individuals who receive a notice of assessment.
  • Within one month of receiving the tax return if not issued a notice of assessment.


Understanding Property Tax in Hong Kong involves grasping the concepts of assessable value, allowable deductions, tax rates, and the filing process.

Contact our tax professional and accurately declaring rental income and expenses, to ensure compliance with tax regulations and optimize financial management.

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