Hong Kong: Taxes and Costs

Country Rating  »

Home ›  Asia ›  Hong Kong ›  Taxes and Costs

Rental income tax is in middle range in Hong Kong

Effective Tax Rate on Rental Income
Monthly Income	US$1,500	US$6,000	US$12,000
Tax Rate	12.2%	12.2%	12.2%
Click here to see a worked example
Source: Disclaimer

INDIVIDUAL TAXATION

Taxation in Hong Kong is based on the territorial source principle; i.e., where the money was earned. Money derived from outside Hong Kong is not taxed in Hong Kong.

Year of assessment is 01 April until 31 March of the following year.

INCOME TAX

Property Tax

Income derived from renting out property is subject to property tax. Property tax is charged at a standard rate of 16% of the property’s net assessable value. The net assessable value (NAV) is the assessable value (after deduction of rates paid by the owner, if applicable, and irrecoverable rent), and then less an allowance of 20% of that assessable value for repairs and outgoings, regardless of whether or not repairs and outgoings were actually incurred.

Gross Rent

Less: Irrecoverable Rent
Less: Rates Paid By Owners
= Assessable Value
Less: Statutory Allowance for Repairs and Outgoings (20% of Assessable Value)
= Net Assessable Value

Property tax is levied on the owner of the property. The owner is obliged to keep sufficient records of rent received, such as lease agreements and duplicates of rent receipts, receipts for rates, correspondence relating to modification of lease terms and recovery of rents in arrears etc, for at least 7 years.

CAPITAL GAINS TAX

No capital gains tax exists in Hong Kong.

Hong Kong - more data and information

• Guide to buying houses and registering property sales in Hong Kong

Your Comments

Post a comment