Form BIR57: Property Tax Return for Individuals in Hong Kong

What Is Form BIR57 and Who Must File It?

Form BIR57 is the property tax return issued by the Inland Revenue Department to individuals who own land or buildings in Hong Kong and derive rental income. Its full title is “Property Tax Return - Individual.” It is issued under the Inland Revenue Ordinance (Cap. 112). A property owner who receives rental income from Hong Kong property must complete it, unless that income is already subject to profits tax through a business operation.

This is the statutory return for an individual landlord to report assessable rental income. The IRD issues the return in early April each year, covering the year of assessment that ended on 31 March. It is not a voluntary filing. It is a statutory demand for information.

Filing the Form BIR57 Property Tax Return Hong Kong

The BIR57 form is a multi-part document. You must state the address of each property owned, the gross rent received or receivable for the year of assessment, the amount of rates paid by the owner, and government rent paid by the owner. Also declare any irrecoverable rent claimed and the owner’s share of ownership where the property is jointly held.

The IRD pre-prints your name and tax reference number on the form, along with the year of assessment. You must complete the rental particulars and sign the declaration. File a separate BIR57 for each block of property. Multiple units within the same building can be listed on one form.

Hong Kong Property Tax Return Individual - the Filing Requirement

The Hong Kong property tax return individual (BIR57) applies to a natural person who owns property in the territory. It does not apply to corporations, which use Form BIR58.

The IRD issues BIR57 to resident or non-resident owners of Hong Kong land or buildings receiving rent and holding the property as an investment, not as trading stock. If the property is part of a sole proprietorship or partnership business, the rental income may be reported on the profits tax return (BIR52) instead. The IRD will normally not issue both returns for the same income.

BIR57 Filing Deadline Hong Kong

The filing deadline is within one month of the date of issue printed on the form. The IRD issues the returns in bulk in early April. The standard deadline is therefore 30 April of the same year.

Apply in writing before the due date if you cannot meet it. The IRD may grant an extension of up to two months where the rental details are not yet finalised. The extension is not automatic. Late filing without a valid extension may result in a penalty: a fine of up to HK$10,000 and a further penalty of three times the tax undercharged.

The IRD also charges a late filing surcharge. For property tax, the surcharge is 5% of the tax unpaid if it remains unpaid six months after the due date, and an additional 5% if it remains unpaid another six months later.

BIR57 Rental Income Hong Kong - What Income Is Reported

BIR57 covers all rent receivable from the property, whether or not the rent has been actually collected in cash. This includes basic rent, service charges or management fees paid by the tenant that you retain, premiums for a lease or licence to occupy, and any payment by the tenant for the right to use the property.

The IRD assesses property tax on the “assessable value” of the property. That is the actual rent receivable during the year of assessment, less the rates and government rent paid by the owner. The assessable value is then reduced by a 20% statutory deduction for repairs and outgoings. The 20% deduction is automatic and does not require supporting evidence. The remaining 80% is the net assessable value, charged to property tax at the standard rate.

If you pay rates directly, those rates are first deducted from the gross rent to arrive at the “net rent” before the 20% statutory deduction is applied. If the tenant pays rates, no such deduction is available because you did not bear the cost.

Assessable Value and the 20% Statutory Deduction

Property tax in Hong Kong is calculated on the net assessable value of the property. The steps are:

1. Gross rent for the year.
2. Less: rates paid by the owner.
3. Less: government rent paid by the owner.
4. Equals: net rent.
5. Less: 20% statutory deduction for repairs and outgoings.
6. Equals: net assessable value.
7. Multiply by the property tax rate of 15% (standard rate).
8. Equals: property tax payable.

The 20% statutory deduction covers all repairs, maintenance, insurance, management fees, and other outgoings. You cannot claim a higher deduction by itemising actual expenses. If actual expenses are lower than 20%, the IRD does not refund the difference.

Interaction With Personal Assessment

An individual who pays property tax may elect to have the rental income assessed under personal assessment instead. Personal assessment aggregates all income from all sources, salary, rental, business profits, and applies the progressive tax rates up to a maximum of 15%, with allowances and deductions. If your total income is low enough, personal assessment may result in a lower tax liability than property tax alone.

Make the election on the individual tax return (BIR60) within the prescribed time. Once made, the rental income is no longer separately assessed as property tax. The property tax already paid is credited against the personal assessment liability. The election cannot be withdrawn after the assessment has become final.

Provisional Property Tax and Objections

The IRD levies provisional property tax alongside the final property tax for each year of assessment. The provisional tax is based on the preceding year’s assessable income and is payable in two instalments: the first at the same time as the final tax for the prior year, the second later in the year.

If the provisional tax exceeds the actual tax for the year, the IRD will apply the overpayment to the next year’s tax or refund it. A taxpayer who has ceased to receive rental income may apply for a holdover of provisional property tax by completing the appropriate section on the property tax return or by submitting a written application.

Object to an assessment in writing within one month of the date of the assessment notice. The objection must state the grounds in detail. The IRD will consider the objection and may revise the assessment or confirm it. If you remain dissatisfied, an appeal lies to the Board of Review.

Distinction From Form BIR58 for Corporations

Form BIR58 is the property tax return for corporations. The IRD issues BIR58 to a company that owns property in Hong Kong and receives rental income. The calculation of property tax for a corporation is identical to that for an individual: gross rent less rates less government rent less 20% statutory deduction equals net assessable value at 15%.

A corporation may elect to have its rental income assessed under profits tax instead, if the property holding forms part of a business. In that case, the corporation files BIR51 (profits tax return for corporations). The rental income is subject to the profits tax rate of 16.5%, but the corporation can claim actual expenses rather than the 20% statutory deduction. The IRD will not issue both BIR51 and BIR58 for the same income.

Where to Obtain Form BIR57

Form BIR57 is issued directly by the IRD to the property owner at the address on its records. You cannot download and print the form from the IRD website. It is a personalised return with the taxpayer’s details pre-printed. If you have not received a return but believe you should have, contact the IRD’s office or submit a written notification of chargeability using Form IRC3111.

The official IRD forms index is at https://www.ird.gov.hk/eng/paf/bus.htm. Always refer to the IRD’s own website for the current version of any form. The department revises them periodically. A stale copy is worse than none.