>Assessable value is the consideration, in money or money’s worth, payable in a year assessment to or for the benefit of the owner in respect of the right to use the land and /or building.

>Property tax is charged at the standard rate on the net assessable value.

>If the letting amounts to a business, the letting income will be chargeable to profits tax. Any property tax payable will be set off against the profits tax payable.

>In the case of a corporation, it may apply for exemption from property tax in respect of rental or other income derived from land and/or building. The said income will be chargeable to profits tax only.

>An individual may apply personal assessment such that his total chargeable income i.e. income chargeable to profits tax, property tax and salaries tax will be grouped together for the purpose of computing the total chargeable income. From the total chargeable income, he may be allowed personal allowances and the net total income subject to tax at the same rates as salaries tax.

>A taxpayer can only elect personal assessment if he is over 18 years old and is a permanently or temporary resident of Hong Kong.

>For married persons not living apart, both the husband and wife having chargeable income or profits, the election must be made by them jointly.

>Once a taxpayer elects personal assessment, he can claim deduction of mortgage interest on any property which produces income chargeable to property tax, approved charitable donations in so far as deduction has not been allowed under profits tax and salaries tax, business loss, home loan interest and personal allowances.

>There is no separate taxation for husband and wife under personal assessment.