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Rental reimbursement complications

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  1. #11

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    Original Post Deleted
    There are always multiple ways of doing things, that's the benefit of these forums, plenty of people thinking out of the box, which is in stark contrast to a common complaint about doing things in HK...

  2. #12

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    Quote Originally Posted by 7jai:
    You need to create a new rental agreement and have both your names on the contract. Then the landlord will need to issue out two seperate receipts, one for each of you (ie: your rent is 14000 a month. 7000 for you, 7000 for your flatmate).

    But of course if you do this, you will pay more agent fees and admin fees associated with it. If your flatmate really wants it that badly, then tell her/him to pay those fees. To be honest, the rental reimbursement program isn't really "that" beneficial unless your salary is very low, and your rent is relatively high.
    Thats more hassle than its worth. Personally as the landlord I wouldnt go to the trouble.

  3. #13

    Thank you everyone for your helpful thoughts and perspectives. The flatmate hasn't paid any deposit so I bear all the risks of the lease. So it sounds like the practical approach is to say no.

    She initially suggested "simply" adding and signing her name on my lease and using that to get her rental reimbursement. I had a feeling it wouldn't be as simple as that.


  4. #14

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    A slightly different question on this. Do the inland revenue have strict rules on the relevant paperwork or is it just down to the company?

    More specifically I rent the flat, have the lease and receipts but do not have the stamp duty certificate. Do the IRD care, or do they just want to see proof of an agreement?


  5. #15

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    Quote Originally Posted by curlyv:
    A slightly different question on this. Do the inland revenue have strict rules on the relevant paperwork or is it just down to the company?

    More specifically I rent the flat, have the lease and receipts but do not have the stamp duty certificate. Do the IRD care, or do they just want to see proof of an agreement?
    The Company declaring your income to IRD are required to ensure proper documents are held, i.e. stamped tenancy agreement and rental receipts. The IRD have the right to request such documentation.

    Update: Copied from GovHK website:

    "Normal letting formalities (such as the stamping of the tenancy agreement and periodic issuance of rental receipts):

    Retention of Documents

    When filing your tax return, you need not attach your tenancy agreement, rental receipts or other documents that provide evidence of rental payment. Such documents, however, should be retained so that they can be provided upon request to the Assessor for review."
    Last edited by Fiona in HKG; 20-04-2016 at 10:03 AM. Reason: Additional Information
    shri likes this.

  6. #16

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    So if the landlord never stamped it, I'm screwed? The IRD website is a bit vague as I could only find reference to having controls in place to establish it's been paid, but they don't specifically list exact documentation.


  7. #17

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    Quote Originally Posted by curlyv:
    So if the landlord never stamped it, I'm screwed? The IRD website is a bit vague as I could only find reference to having controls in place to establish it's been paid, but they don't specifically list exact documentation.
    Special Cases

    The Assessor will examine the following types of cases critically before accepting or rejecting that a place of residence has been provided by an employer:
    1.an employee lets his own property to himself or rents the property from a connected person (such as spouse) and then claims rental reimbursements from his employer; or
    2.an employee lets his own property or a connected person’s property to his employer and the employer provides that property to him for use as a place of residence.

    In such cases, the Assessor will ask the employee and/or the employer to provide evidence showing a genuine landlord and tenant relationship exists between the contracting parties. The Assessor will take the following factors into account before making a decision:
    •whether the rent is above the market rent;
    •whether the normal letting formalities (such as the stamping of the tenancy agreement and periodic issuance of rental receipts) have been executed; and
    •whether the ordinary rights and obligations of landlord and tenant have been observed.

  8. #18

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    Thanks. Guess I was searching in the wrong place on the IRD Website.

    At the end of the day my company is insisting on a stamped agreement so even though it would seem that if the IRD requested the paperwork they would assess on a case by case basis, probably not going to help me.


  9. #19

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    Quote Originally Posted by curlyv:
    Thanks. Guess I was searching in the wrong place on the IRD Website.

    At the end of the day my company is insisting on a stamped agreement so even though it would seem that if the IRD requested the paperwork they would assess on a case by case basis, probably not going to help me.
    Your company is obliged to run a rental reimbursement scheme under the requirements of the IRD and one requirement is a stamped tenancy agreement. IRD wouldn't, as far as I know, accept a non-stamped tenancy agreement.

  10. #20

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    I looked into backdating the stamp but appears there is a penalty for late payment involved which is quite a lot.