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Accounting - Hong Kong

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Frequently Asked Questions for the Deduction for Mortgage Interests in Hong Kong

Answer
The following are frequently asked questions for the deduction for mortgage interests in Hong Kong:

Q:
How can I get deduction of mortgage interest payments from rental income?
A:
Deduction for mortgage interests can only be claimed under Personal Assessment. You will only get deductions for rates paid by you and a 20% allowance for repairs and outgoings if you are charged to Property Tax.

Q:
To be eligible to Personal Assessment, what criteria should be satisfied?
A:
The following criteria should be satisfied:
  • 18 years old or over, or under that age if parents are dead; and
  • Either ordinarily resident in Hong Kong or a temporary resident.

Q:
Does it mean I cannot claim the said deduction from rental income if I am not eligible to make an election for Personal Assessment?
A:
Yes, that is correct.

Q:
My mother and I are the joint owners of a property, but every dollar of rent went to my mother. Can the full amount of net assessable value be assessed as her income?
A: No, the net assessable value must be apportioned equally between you and your mother.

Q:
What amount of mortgage interest deduction can I claim if the interest is wholly paid by me but the rent-out property is co-owned by me and my mum?
A: The amount allowable for deduction will be half of the interest you paid.

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