Did you know that thousands of Hong Kong property owners successfully reduce their rates bills each year? If you believe your property has been overvalued, you have the legal right to challenge the assessment. This comprehensive guide walks you through the entire appeal process, from gathering evidence to navigating the Lands Tribunal, ensuring you have the knowledge to potentially save thousands in property rates.

Understanding Hong Kong Property Rates and Rateable Value

Property rates in Hong Kong are a form of taxation levied on property ownership or occupation. Unless specifically exempted under the Rating Ordinance (Chapter 116), all properties are liable for rates, calculated as a percentage of the property’s rateable value. The current rates percentage is 5% for 2024-25, though this can vary by year based on government budget decisions.

What Exactly is Rateable Value?

Rateable value represents the estimated annual rental value of a property in the open market at a specific valuation reference date. For the 2025-26 assessment period, the valuation reference date is October 1, 2024, with rateable values taking effect from April 1, 2025. The calculation assumes:

• The property is vacant and available for letting
• The tenant pays all usual tenant’s rates and taxes
• The landlord pays Government rent, repair costs, insurance, and other maintenance expenses
• The valuation reflects what the property would command in the open market

Valid Grounds for Appealing Your Assessment

You can object to your property’s rateable value if you’re aggrieved on one or more of these legal grounds:

Common Reasons for Successful Appeals

• Comparable rental evidence showing lower market rents for similar properties
• Property defects or conditions not properly reflected in assessment
• Incorrect property particulars (size, facilities, features)
• Changes in local area affecting rental values
• Errors in application of valuation methodology

The Two-Stage Appeal Process: Step-by-Step

Stage 1: Objection to Commissioner of Rating and Valuation

This mandatory first step requires lodging a formal objection with the Commissioner. The form and deadline depend on your situation:

Stage 2: Appeal to the Lands Tribunal

If unsatisfied with the Commissioner’s decision, you may appeal to the Lands Tribunal within 28 days. This is the final administrative stage before entering the court system.

7-Step Guide to Successfully Appealing Your Assessment

1. Step 1: Review Your Rates Demand Notice
   Carefully check the rateable value, property particulars, valuation reference date (October 1, 2024 for 2025-26), and effective date. Verify details online at RVD’s Property Information Online (PIO) website or visit their enquiry counter.
2. Step 2: Gather Strong Comparable Evidence
   Collect actual lease agreements for similar units signed within 12 months of the valuation reference date. Include market rental data, property condition photos, engineering reports, and rateable values of comparable properties.
3. Step 3: Determine Correct Form and Deadline
   Use Form R20A/e-R20A for annual revaluations (March 17-May 31) or Form R23A/e-R23A for interim valuations (28 days from notice).
4. Step 4: Complete and Submit Objection Form
   Download forms from RVD website or submit electronically via their “Electronic Submission of Forms” service. Include your details, property information, proposed rateable value, grounds for objection, and supporting evidence.
5. Step 5: Continue Paying Rates During Appeal
   This is crucial! Rates must continue to be paid based on the original rateable value. Late payments incur a 5% surcharge. If successful, you’ll receive adjustments and refunds.
6. Step 6: Await Commissioner’s Decision
   For annual objections: decision before December 1. For interim objections: within 6 months after objection period expiry. You’ll receive Notice of Decision (Form R22A).
7. Step 7: Consider Lands Tribunal Appeal if Necessary
   If unsatisfied, file Form 19 with Lands Tribunal within 28 days of receiving Notice of Decision. Serve copy on Commissioner and pay required filing fee.

What Makes Strong Evidence for Your Appeal?

The quality of your evidence determines your success. Here’s what the RVD and Lands Tribunal value most:

Real-World Success Stories

Case Study: Residential Apartment Reduction

Mr. Chan’s 600 sq ft Kowloon apartment received a 2025-26 rateable value of $30,000/month (up from $26,000). He researched and found three similar apartments in his building rented between September-November 2024 for $27,000-$28,000. Submitting Form e-R20A by May 15, 2025 with two tenancy agreements as evidence, he proposed $27,500. In November 2025, the Commissioner reduced it to $28,000.

Result: $2,000/month reduction = $1,200 annual rates savings (at 5% rate).

Case Study: Commercial Property Lands Tribunal Appeal

A property management company challenged a $500,000/month commercial building assessment. After Commissioner upheld the value, they filed Lands Tribunal appeal within 28 days, engaging a professional surveyor who analyzed 15 comparable transactions and proposed $450,000. The Tribunal set the value at $470,000.

Result: $30,000/month reduction = $18,000 annual savings, though professional fees were incurred.

Common Mistakes That Can Derail Your Appeal

• Missing deadlines: The #1 error – Commissioner has no discretion for late submissions
• Using wrong form: Form R20A vs R23A confusion leads to rejection
• Insufficient evidence: Objections without proper comparable rental data fail
• Stopping rate payments: Leads to 5% surcharges on overdue amounts
• Irrelevant arguments: Personal hardship isn’t relevant to market rental value
• Ignoring valuation reference date: Use evidence from around October 1, 2024 for 2025-26 assessments

Successfully appealing your property rates assessment requires careful preparation, strong evidence, and strict adherence to deadlines. While the process may seem daunting, thousands of Hong Kong property owners achieve reductions each year. Start by reviewing your assessment, gathering comparable evidence, and submitting your objection before the deadline. Remember: even a modest reduction can yield meaningful savings over time.