Hong Kong Property Tax Guide (8) – A checklist for reduction of property tax

A checklist for reduction of property tax

1. Are you a low-income person? If yes, you should elect for personal assessment to remove or to reduce the tax.
2. Have you borrowed money to purchase the property and paid interest? If yes, you should elect for personal assessment to claim deduction of interest.
3. Do you include rent deposits in your rental income? If yes, you should exclude them from the assessable value.
4. Have you received lump-sum premium? If yes, the premium can be spread over 36 months in order to reduce tax.
5. Do you pay management fee as an agent of the tenant? If yes, such fee received from the tenant is not assessable.
6. Do you know what property income are assessable and what are non-assessable?

The checklist is for general guidance only. Indeed, the above guidelines are subject to the various conditions laid down in the Inland Revenue Ordinance as well as the judgments made in court and Board of Review cases. Besides, there are exceptions to which the above guidelines do not apply.