On June 14, 2018, Hong Kong’s Inland Revenue Department released guidance on the tax obligations of landlords.
Owners in receipt of rental income must inform the HK’s Inland Revenue Department in writing if they are liable to tax and supply the particulars of the property no later than 4 months after the end of the basis period for the year of assessment, unless they have already received the appropriate tax returns. Owners should use the form “Notification of Letting of Properties” for this purpose.
Property owners must complete a tax return, even if they do not receive rental income.
Sufficient rent records must be retained by property owners, such as lease agreements and duplicates of rental receipts, for at least seven years, and the Department must be informed in writing of a change of ownership or a change in the owner’s address within one month of the change.
If a corporation has been exempted from property tax and there is a change in the ownership or use of the property, or in any other circumstances that may affect the exemption, it must notify the Hong Kong’s Inland Revenue Department in writing within 30 days of the event.
Filed under: Business and Economy, HK as a Financial Centre, HK Law changes, Offshore Legislation, Taxation
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