Like Tree1Likes
  • 1 Post By bdw

Property Tax Returns

Reply
  1. #1

    Join Date
    Aug 2016
    Posts
    62

    Property Tax Returns

    Hi, I live in the UK but have a permanent ID card. I have a property in HK which is let out. I haven't been asked, or I least I don't think I have, to do a property tax return but I presume I need to. I don't think I have anything to pay since I have a marriage allowance so the income should be under the threshold.

    What should I do to get the ball rolling?

    Also what are the deadlines?

    Thanks!


  2. #2
    P.G
    P.G is offline

    Join Date
    Jul 2010
    Posts
    25

    Elect for personal assessment

    Tax in HK is placed in three groups: Salaries tax, property tax and profits tax. Technically, personal allowance/marriage allowance is only applicable for your salaries tax. Since you have no salaries tax, you are unable to utilize the personal allowance unless you elect "Personal assessment" which in essence combines all three tax of an individual into one so you will be able to offset your rental income with your personal allowance (or marriage allowance if you are married - you will also have to get signature of your spouse).

    Details on property tax and personal allowance can all be found here: Property Tax - What you need to know as a Property Owner
    You might also want to explore the section: "What deductions can I claim?" to further drive down your tax.

    Tax forms are usually sent to you but since you are living outside Hong Kong, it would be advisable to request for e-tax system and file online. Find the information about e-tax here: https://www.gov.hk/en/residents/taxes/etax/index.htm


  3. #3

    Join Date
    Mar 2008
    Posts
    887

    You still need to file a return, as the property generates HK sourced income. If you fall under the personal allowance then you will end up paying no tax on that portion of the income.


  4. #4

    Join Date
    Aug 2016
    Posts
    62

    Thanks @P.G, this is super useful. I kind of thought that I should do the personal assessment but I didn't realise it combines all three taxes which is definitely handy.

    Yes, since I don't have salary income, I'm looking to use mine, my wife's and child's allowances to offset the rental income.


  5. #5
    bdw
    bdw is offline

    Join Date
    Feb 2009
    Posts
    5,927
    Quote Originally Posted by benjai:
    Thanks @P.G, this is super useful. I kind of thought that I should do the personal assessment but I didn't realise it combines all three taxes which is definitely handy.

    Yes, since I don't have salary income, I'm looking to use mine, my wife's and child's allowances to offset the rental income.
    Sorry to open an old thread and not sure you will read this or not. But for the last 3 years have you had to pay HK property tax? The tax I believe should be based on the rental income less 20% for repairs and maintence (which is a made up number that some tax office bigwig has pulled out of their arse that they think is an 'average' expenditure on repairs and maintenance), less a few other deductions such as government rates (but not the government rent and management fees!)

    I notice you mention about the married allowance and you think you can pay no tax because your rental income falls under this allowance. I initially thought this too, but upon further investigation this allowance only offsets your salary income, not property income. So I don't think you can do this right?

    I'm kind of in the same situation now. I'm a lazy fucker, last day of August and I think there is is a deadline to submit my property taxes today. I logged onto the IRD website, and lo and behold I can see my property there, a few mouse clicks, input the rent I received up to March 31st, input the rates and bobs your uncle, tax done! Very easy. Now I just sit back and wait and see how much I have to pay.
    traineeinvestor likes this.