Rates are one of Hong Kong's indirect taxes levied on properties. The revenue collected forms part of Government's general revenue.

Rates are charged at a percentage of the rateable value which is the estimated annual rental value of a property at a designated valuation reference date, assuming that the property was then vacant and to let.

For the current Financial Year 2008-2009, the rates percentage charge is 5% and the designated valuation reference date is 1 October 2007.

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. Neither restrictions on sale or letting, such as those that apply to Home Ownership Scheme flats, nor the financial status of the ratepayer, can be taken into account. In assessing the rateable value, reference is made to other open market rents agreed at or around the date of valuation, for similar properties in the locality, with due adjustments to reflect any differences in size, location, facilities, standards of finish and management.

The rateable values of all types of property, including private and public housing, are assessed on the same basis. This provides a fair and uniform base on which to charge rates in accordance with the open market rental value of the property.

The rateable values will be reviewed annually in the general revaluation so as to reflect more precisely the up-to-date rental values of the properties. For the 2008-2009 revaluation, the designated valuation reference date is 1 October 2007 and the rateable values take effect from 1 April 2008. Following the revaluation, rateable values will be adjusted and may vary depending on the extent of change in the rental levels of the properties.

Generally, properties in all parts of Hong Kong are liable to be assessed to rates under the Rating Ordinance (Cap. 116). Altogether the 2008-2009 valuation list includes nearly 2.31 million assessments comprising about 2.94 million units.

Both the owner and the occupier are liable for rates. In practice, this will depend on the terms of the agreement between the owner and occupier of the premises. In the absence of any agreement to the contrary, liability for rates rests with the occupier.

(Please refer to Billing and Payment Section under Public Services)

(Please refer to Billing and Payment Section under Public Services)

Any ratepayer who is not satisfied with the rateable value of his property can object to the rateable value under the Rating Ordinance.

For newly-built property assessed to rates for the first time, the assessment is notified to the ratepayer by means of a Notice of Interim Valuation (Form R6). The ratepayer may lodge a formal objection to an interim valuation on a Notice of Objection form (Form R23A)(pdf). Such an objection must be lodged with the Commissioner within 28 DAYS after the service of the Notice of Interim Valuation (Form R6). The Commissioner does not have the discretion to accept late objections.

For other properties already assessed to rates, the ratepayer may object to the new rateable value following a revaluation in the form of a "proposal". He should complete a Proposal Form (Form R20A). For those paying rates and Government rent together they only need to object against the rateable value for rates provided the rateable value for charging rates and Government rent is the same. However, if the rateable value for rent is different they should object to both. The proposal must be served on the Commissioner in the months of April and May of the year in which the rateable value takes effect. The Commissioner does not have the discretion to accept a proposal served at any other time.

All objections will be carefully reviewed by professional staff of the Department. The Department will issue a Notice of Decision which will either confirm the original assessment or state what the revised rateable value should be, or confirm whether or not the property is liable for assessment to rates, as the case may be.

Even if an objection is lodged, rates and/or Government rent must be paid as demanded and late payments will be subject to a surcharge. If the rateable value is amended as a result of the objection, proposal or appeal, the alteration will be backdated to the relevant date the rateable value takes effect and adjustment to the rates and/or Government rent will be made in subsequent demands.

Notices of Objection (Form R23A)(pdf) and Proposals (Form R20A) may be served by post or in person at the Department's Office. Members of the public may also submit their objection (Form e-R23A) or proposal (Form e-R20A) by using the "Electronic Submission of Forms" service provided at the Department's website. Service by fax is NOT acceptable.

A person on whom a Notice of Decision has been served may, if still unsatisfied with the Commissioner's decision on the proposal or objection, lodge an appeal with the Lands Tribunal within 28 days of the service of the Notice of Decision. A fee is payable on lodging the appeal.

Forms used for appeals and advice on appeal procedures may be obtained from the office of the Registrar of Lands Tribunal at:

Lands Tribunal Building
38 Gascoigne Road
Kowloon
Tel. No.: 2170 3819-22

The forms mentioned above, Notices of Objection and Proposal, are available free of charge from the Department, District Offices or the Public Forms Section of this homepage, or from our 24-hour Automated Enquiry Service by telephoning 2152 2152.

(Please refer to the Frequently Asked Questions Section)