Government welcomes passage of tax deduction for domestic rent
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"The measure aims at easing the burden on taxpayers liable to salaries tax and tax under personal assessment who do not own any domestic property. Eligible taxpayers can provide information about their expected domestic rent paid in relation to the year of assessment (YA) 2022/23 in the tax returns for YA 2021/22. The Inland Revenue Department will take into account the deduction when assessing the provisional salaries tax for YA 2022/23. The measure is expected to benefit about 430 000 taxpayers. The government revenue forgone will amount to about $3.3 billion per year," Mr Hui said.
The maximum amount of allowable deduction is $100,000 for each YA. A taxpayer may claim a deduction for the rent paid by him/her or his/her spouse (who is not living apart from him/her) in relation to a relevant YA for renting domestic premises. The relevant premises must be the taxpayer's principal place of residence, and the relevant tenancy must be stamped. There is no limit for the entitlement period. Details of the tax deduction for domestic rent can be found on the webpage at www.ird.gov.hk/eng/tax/drd.htm.
Ends/Wednesday, June 22, 2022
Issued at HKT 16:46
Issued at HKT 16:46
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