📋 Key Facts at a Glance

• Tax Rate: 15% flat rate on net assessable rental income
• Standard Deduction: 20% automatic allowance for repairs and maintenance
• Filing Deadline: 1 month from issue date (paper) / 2 months (eTAX online)
• Tax Year: 1 April to 31 March (e.g., 2024/25 runs from 1 April 2024 to 31 March 2025)
• Form Required: BIR57 for jointly-owned properties / BIR60 for solely-owned properties
• Payment Schedule: Provisional tax payable in two instalments (typically November and April)
• Record Keeping: Maintain all documents for at least 7 years

⚠️ Important: Property tax is calculated on a territorial basis—only rental income from properties physically located in Hong Kong is taxable. Overseas properties are not subject to Hong Kong property tax.

Calculation Step	Description	Example (Annual)
Gross Rental Income	Total rent + premiums + non-refundable deposits	HK$360,000
Less: Rates Paid by Owner	Only government rates you actually paid	HK$15,000
Adjusted Assessable Value	Gross income minus rates paid	HK$345,000
Less: 20% Standard Allowance	Automatic deduction for repairs/maintenance	HK$69,000
Net Assessable Value	Taxable amount after all deductions	HK$276,000
Property Tax @ 15%	Final tax payable	HK$41,400

💡 Pro Tip: The 20% standard allowance for repairs and maintenance is automatically applied by the IRD—you don’t need to claim it separately. This covers typical maintenance costs without requiring detailed expense records.

Ownership Type	Form Required	Key Features
Sole Ownership	BIR60 (Tax Return – Individuals)	Report rental income in your individual tax return
Joint Ownership (1-3 co-owners)	BIR57 (Property Tax Return)	Separate form for each jointly-owned property
Corporate Ownership	Profits Tax Return	Corporations can elect to have rental income assessed under Profits Tax

💡 Pro Tip: Always use eTAX for electronic filing. You get an automatic one-month extension, receive confirmation receipts, and can track your filing status online. The platform is mobile-responsive and supports iAM Smart login for enhanced security.

Step 3: Complete Your Property Tax Return

When completing Form BIR57 (for jointly-owned properties), pay special attention to these sections:

• Property Information: Full address, nature of property (residential/commercial/industrial)
• Ownership Details: Percentage ownership for each co-owner
• Rental Income: Report all rent, lease premiums, key money, and non-refundable deposits
• Tenancy Periods: Exact start and end dates for each rental period
• Deductions: Only rates paid by you as owner and irrecoverable rent (with evidence)

Critical Deadlines and Payment Schedule

Personal Assessment: A Smart Alternative

If you have significant deductible expenses or other income sources, electing for Personal Assessment instead of standard property tax could save you money. This option allows you to:

• Claim mortgage interest deductions (up to HK$100,000 per year for up to 20 years)
• Offset rental losses against other income (salaries, business profits)
• Claim personal allowances (basic allowance: HK$132,000, married: HK$264,000, child: HK$130,000 each)
• Benefit from progressive tax rates (2% to 17%) instead of the flat 15% property tax rate

Required Documentation Checklist

Maintain these documents for at least 7 years (the IRD’s audit period):

• Tenancy Agreements: Signed lease contracts for all rental periods
• Rental Records: Bank statements, receipts, or rent payment logs
• Rates Receipts: Proof of government rates paid by you as owner
• Irrecoverable Rent Documentation: Evidence of collection attempts and write-offs
• Property Purchase Documents: Sale and purchase agreements (for year of acquisition)
• Authorization Letters: Power of Attorney (for agents filing on behalf of owners)
• Identification: HKID or passport for all property owners

Special Situations and Common Questions

Filing for Overseas Property Owners

If you’re residing outside Hong Kong or acting as an agent for overseas owners:

1. Obtain written authorization from the property owner(s)
2. Attach a copy of the Power of Attorney or Letter of Authorization to the return
3. Include agent details: name, HKID/business registration number, postal address
4. Specify dates of commencement and cessation of agency (if known)

Frequently Asked Questions

Filing property tax returns in Hong Kong doesn’t have to be complicated. By understanding the 15% tax rate, utilizing the eTAX platform for electronic filing, and maintaining proper documentation, you can ensure compliance while optimizing your tax position. Remember that property tax is just one aspect—consider Personal Assessment if you have significant deductible expenses. When in doubt, consult with a qualified tax professional who can provide personalized advice based on your specific circumstances.