common areas of a building such as side shop, carpark, external
wall, roof top etc are collectively owned by the individual owners
of the building. If any part of the common areas is let out, the
rental income derived is chargeable to Property Tax. The owners
are responsible for reporting the rental income and paying the tax.
If the owners have not received a tax return relating to the common
areas let, they are required to notify
us in writing
However, when an owners' corporation is formed,
section 16 of the Building Management Ordinance provides
that the rights and duties of the owners relating to the common
parts of the building shall be exercised and performed by the incorporated
owners of the building. Therefore, the owners' corporation is required,
on behalf of all the owners of the building, to report the income
and pay the tax.
With effect from 12 February 2010, when an owners'
incorporation or a person receives any rental income on common parts
of a building, either on own behalf or on behalf of another person,
the owners' incorporation or the person receiving the rent will
be regarded as owner of the common parts and is thus required to
report the rental income and pay the property tax.