Does Hong Kong collect property tax?

There are three main types of real estate taxes in Hong Kong: rates, government rent and property tax.

1, say the rate first. Rates are levied according to the rental market value of land and buildings, which is a tax on the use of property. In recent years, the tax rate is 5%, accounting for about 3% of Hong Kong's income and about 2% of Hong Kong's household expenditure.

It is worth noting that the laws of Hong Kong do not specify whether the ratepayer is the lessor or the lessee. Generally, it is agreed by the tenant and the owner themselves. Unless otherwise agreed, it shall be paid by the user.

In terms of relief, Hong Kong mainly focuses on agricultural land and related buildings, buildings for religious purposes, cemeteries and crematoria, some government-owned properties, and military land.

In addition, the Government has the right to refund or reduce rates to ratepayers. For example, when the economic situation is poor, the government can formulate some relief measures to reduce the tax revenue of residents. A few years after the financial crisis, due to some measures to reduce the rate, the rate in the total income dropped to about 3%.

2. Look at the government rent in Hong Kong. It is worth noting that the land in Hong Kong is also dominated by public ownership, which is basically similar to that in the Mainland.

Therefore, the land lease system and the annual rent system in Hong Kong go hand in hand. Developers should pay the land transfer fee in one lump sum when purchasing. Besides, we have to pay a certain amount of land rent every year. The tax base of government rent is the same as rates, and the tax rate is 3%.

3. Finally, the property tax. Hong Kong's property tax is levied on property owners, aiming at the rental income of land and buildings (if it is not rented, there is no need to pay property tax). At the same time, some items can be deducted. The current property tax rate is 15%.

In terms of concessions, irrecoverable rents and rates paid by property owners can be deducted from rental income. In addition, the government also provides a standard tax allowance of 20% for maintenance and related expenses. Simply put, tax amount = standard tax rate (15%)*80%* (rental income-irrecoverable rent-tax rate paid by property owner).

Tax preferences and tax procedures

1, tax incentives

A. If the husband and wife have no children, the tax-free area shall be calculated as 3 persons.

B, unmarried single or divorced single, the tax-free area is calculated by 1.5 people, but the tax-free area does not exceed 60 square meters.

C, widowed single and only child died according to 2 people to calculate the tax-free area.

D, demolition compensation for real estate and enjoy low-income families can be exempted from property tax.

E, real estate that is not within the scope of urban tourism can be exempted from or levied property tax by half.

2. Tax process

Every year 1 month 1 day, the tax department will automatically generate the information of tax-paying family members and local real estate information through the property tax computer collection and management system, and then generate a tax payment notice and mail it to taxpayers. The tax should be paid before the end of March, and the late fee will be calculated separately. Family member information can be obtained from census data or feedback from the public security household registration department.

Local real estate information is obtained by the national housing information inquiry system of the Ministry of Housing and Urban-Rural Development, including all local real estate of taxpayers, ranking of sets, deductible tax-free area and other information. If taxpayers think that the information in the tax payment notice is wrong, they can bring relevant documents to the local tax authorities for handling.