Property Tax

The owner, ie the person, will be liable to property tax.

According to IRO sectio 5 (1), property tax is charged on the owner of any buildings situed in HK, at the standard rate on the net assessable value.

Since the owner lease out the flat, he generate rental income and the income will be taxed.

Another issue is that, the owner has to pay mortgage interest to the bank. That interest expenses will not deductible.

For bank, it will not be charged for property tax

(P.S : is it the person as a mortgager, bank as mortgagee?)

2009-10-30 21:31:44 補充：
further opinion : the owner cannot claim deduction of mortgage interest under property tax. but he can apply for Personal assessment if he is permanent resident over 18 and ordinanal resides in HK. under personal assessment, he can deduct the mortgage interest.

銀行稅務貸款

現金周轉 卡數問題 旅遊購物

還款期 6 至 36 個月(由你選擇)

貸款額特高 最高可達80萬或月薪十倍(以較低為準)

息率最低至每月平息 0.05% ($10000每月利息最低至$5)

批刻後,現金直接存入閣下指定的銀行戶口

查詢電話 : 9804 8712 ( Teddy) 手續簡易快捷

"Another issue is that, the owner has to pay mortgage interest to the bank. That interest expenses will not deductible."

Are you sure?

Purchase of properties financed by banks will be charged by interest from the bank. Interest income derived by bank therefore need to pay profits tax. The mortgagee since he has rented out his property, will be subject to either profits tax or property tax depending on the situation.

For reference only!