Calculation method of rates and government rent

Government rent is set at 3% of the rateable value of the property.

Rates are charged according to the rateable value of the property multiplied by a percentage. The rates percentage charge is determined by the Legislative Council every year. In the fiscal year 2006-2007, the rates charge rate was 5%.

So:

Rates = rateable value x 5%

Ratable Value = Rates /5% = 466 yuan /5% = 9, 320 yuan.

The rent = rateable value x 3% = 9, 320 yuan x 3% = 279.6 yuan. Reference: Rating and Valuation Department, the amount of government rent is equal to 3% of the rateable value of the property industry, and will be adjusted according to the change of rateable value. The rate of land rent collection will remain at 3%. This is different from the practice that the annual rates collection rate is determined by the Legislative Council. Therefore, if the rateable value is revised when the rateable value is revalued, the government rent payable will be adjusted accordingly.

The rate is 466 yuan per quarter, and the government rent is paid quarterly 14 yuan. Reference: rvd/tc/faqs/rent_a#5 of Rating and Valuation Department.