Rating and Valuation Department - Frequently Asked Questions

Government Rent

1.	How will Government rent be utilised by the Government? Government rent is part of the Government's general revenue which will be used in the same way as other sources of revenue.
2.	Why should an owner of a property be required to pay Government rent? All land in Hong Kong is held from the Government by way of a "land grant" known as Government (formerly Crown) lease. All owners have covenanted under Government leases to pay a rent to the Government in return for the occupation or use of the land leased.
3.	I am an indigenous villager owning a small house lot since the date of grant. Am I still entitled to the exemption from payment of the new Government rent if I have let the lot to a tenant instead of occupying the lot myself? Yes. You can still enjoy the exemption from payment of the new Government rent so long as the lot is still owned continuously by you or your lawful successor, as the exemption is based on the ownership and not the occupation of the lot.
4.	What is rateable value? Rateable value is an estimate of the annual rental value of the property at a designated valuation reference date, assuming that the property was then vacant and to let. For the 2012-2013 rateable value, the designated reference date is 1 October 2011.
5.	Will the amount of Government rent change every year? The Government rent is calculated at 3% of the rateable value of the property and is adjusted in step with any subsequent changes in the rateable value. Therefore, if the rateable value is revised during the general revaluation, the amount of Government rent payable will also be revised.
6.	Will the charge percentage for Government rent change from time to time? No. Unlike the rates percentage charge which is determined by the Legislative Council every year, the charge percentage for Government rent will remain at 3%.
7.	Is my landlord entitled to ask me, a tenant, to pay the Government Rent on top of my rental payment? It all depends on the terms of the tenancy agreement signed between you and your landlord. If there is a provision in the agreement stipulating that the tenant is liable for the Government Rent, then the liability rests with you. But in the absence of any provision stating such liability in the agreement, the landlord will be liable for Government Rent. If you have paid the Government Rent on receipt of the Demand Note, you may claim reimbursement from the landlord.