Glossary of Commonly Used Terms
Government Rent
Government rent is the rent payable for a land lease by the lessee to the Government in accordance with the lease terms and any relevant legislation. This Department is responsible for the Government rent assessed and collected under the Government Rent (Assessment and Collection) Ordinance, which is calculated at 3% of the rateable value of a property.
Government Rent Roll
Government Rent Roll refers to the roll recording the descriptions and rateable values of all tenements that have been assessed to Government rent.
Interim Valuation
Interim valuation means making a valuation of a tenement which is not included in the Valuation List and/or Government Rent Roll and is liable for assessment to rates and/or Government rent.
Minimum Rateable Value
Any property of which the rateable value does not exceed the “Minimum Rateable Value” (currently at $3,000) is exempted from assessment to rates. Besides, no demand for Government rent will be issued to such property.
Proposal
After a general revaluation, any person who is aggrieved by an entry in the Valuation List or Government Rent Roll may object to the new rateable value by submitting a "Proposal" in the specified Form R20A to alter the entry in the Valuation List or Government Rent Roll.
Rateable Value
Rateable value is an estimate of the annual rental value of a property in the open market as at the designated valuation reference date, assuming that the property is vacant and to let.
Rates
Rates are one of Hong Kong’s indirect taxes levied on properties. They are charged at specified percentage(s) of the rateable value.
- The current rates percentage charge for all non-domestic tenements is 5%.
- For domestic tenements, the rates percentage charge for those with rateable value of $550,000 or below is 5%. For domestic tenements with rateable value over $550,000, rates are calculated according to the progressive rates charge scale. Please visit the dedicated page for “Progressive Rating System for Domestic Tenements” for details.
Rates were originally levied in the form of the Police Rate to pay the expenses for maintaining the police force in Hong Kong. Since 1 January 2000, rates revenue has become part of the general revenue of the Government.
Saleable Area
Saleable area is defined as the floor area exclusively allocated to a residential unit including balconies, verandahs, utility platforms and other similar features but excluding common areas such as stairs, lift shafts, pipe ducts, lobbies and communal toilets. It is measured to the exterior face of the external walls and walls onto common parts or the centre of party walls. Bay windows, flat roofs, top roofs, stairhoods, cocklofts, gardens, terraces, yards, air-conditioning plant rooms, air-conditioning platforms, planters/flowers boxes and car parking spaces are excluded.
Valuation List
Valuation List refers to the list recording the descriptions and rateable values of all tenements that have been assessed to rates.
Valuation Reference Date
Valuation reference date is a designated common reference date. Rateable values of all properties are determined by reference to the prevailing market rental levels at that date. In recent years, the relevant date has been fixed at 1 October.