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Deduction for domestic rent for the year of assessment 2023/24 - Illustrative Examples
| Example 1 | Example 2 | Example 3 | Example 4 | Example 5 | Example 6 | Example 7 | |
| No. of tenancy/tenancies | One | One | Two | One | One | Two | Two |
| No. of tenant(s) under each tenancy | One | One | One | Two | One | Two | One |
| Contractual period of each tenancy in the year of assessment |
Full year |
Part year | Part year | Full year | Full year | Part year |
One full year; One part year |
| Claimant(s) are married persons | No | No | No | No | Yes | Yes | Yes |
| Claimant(s) married in the year of assessment | N/A | N/A | N/A | N/A | No | No | Yes |
Mr. Chan entered into a qualifying tenancy in respect of a residential flat with a monthly rent of $20,000 for the period from 1 July 2022 to 30 June 2024. He lived in the flat and paid total rent of $240,000 (i.e. $20,000 x 12 months) for the year of assessment 2023/24.
Deduction allowable for the year of assessment 2023/24
| Rent paid under tenancy | No. of tenant(s) | Qualifying rental amount | Maximum deduction | No. of months in contractual period | Deduction ceiling | Prescribed deduction amount (i.e. allowable deduction) |
| [A] | [B] | [C = A/B] | [D] | [E] | [F = D x E/12÷B] | [G = Lesser of C or F] |
| $240,000 | 1 | $240,000 | $100,000 | 12 | $100,000 | $100,000 |
Mr. Lee entered into a qualifying tenancy in respect of a residential flat with a monthly rent of $20,000 for the period from 1 October 2021 to 30 September 2023. He lived in the flat and paid total rent of $120,000 (i.e. $20,000 x 6 months) for the year of assessment 2023/24 Since 1 October 2023, Mr. Lee has lived in another residential flat acquired by him.
Deduction allowable for the year of assessment 2023/24
| Rent paid under tenancy | No. of tenant(s) | Qualifying rental amount | Maximum deduction | No. of months in contractual period | Deduction ceiling | Prescribed deduction amount (i.e. allowable deduction) |
| [A] | [B] | [C = A/B] | [D] | [E] | [F = D x E/12÷B] | [G = Lesser of C or F] |
| $120,000 | 1 | $120,000 | $100,000 | 6 | $50,000 | $50,000 |
Mr. Cheung entered into a qualifying tenancy (T1) in respect of a residential flat with a monthly rent of $7,000 for the period from 1 July 2021 to 30 June 2023. He lived in the flat until 30 June 2023 and moved back to his parents’ home. Mr. Cheung then entered into a qualifying tenancy (T2) in respect of another residential flat with a monthly rent of $9,000 for the period from 1 October 2023 to 30 September 2025 and lived in the flat accordingly. For the year of assessment 2023/24, the total amount of rent paid by Mr. Cheung was $75,000 (i.e. $7,000 x 3 months + $9,000 x 6 months).
Deduction allowable for the year of assessment 2023/24
| Rent paid under tenancy | No. of tenant(s) | Qualifying rental amount | Maximum deduction | No. of months in contractual period | Deduction ceiling |
Prescribed deduction amount (i.e. allowable deduction) |
|
| [A] | [B] | [C = A/B] | [D] | [E] | [F = D x E/12÷B] | [G = Lesser of C or F] | |
| T1 | $21,000 | 1 | $21,000 | $100,000 | 3 | $25,000 | $21,000 |
| T2 | $54,000 | 1 | $54,000 | $100,000 | 6 | $50,000 | $50,000 |
| Total | $75,000 | $75,000 | $75,000 | $71,000 |
Mr. Ho and Miss Ho are brother and sister. They entered into a qualifying tenancy in respect of a residential flat with a monthly rent of $20,000 for the period from 1 July 2022 to 30 June 2024. They lived in the flat and paid total rent of $240,000 (i.e. $20,000 x 12 months) for the year of assessment 2023/24.
Deduction allowable for the year of assessment 2023/24
| Rent paid under tenancy | No. of tenant(s) | Qualifying rental amount | Maximum deduction | No. of months in contractual period | Deduction ceiling |
Prescribed deduction amount (i.e. allowable deduction) |
|
| [A] | [B] | [C = A/B] | [D] | [E] | [F = D x E/12÷B] | [G = Lesser of C or F] | |
| Mr. Ho | $240,000 | 2 | $120,000 | $100,000 | 12 | $50,000 | $50,000 |
| Miss Ho | $240,000 | 2 | $120,000 | $100,000 | 12 | $50,000 | $50,000 |
| Total | $240,000 | $100,000 | $100,000 |
Mr. Wong and Mrs. Wong are husband and wife. Mr. Wong entered into a qualifying tenancy in respect of a residential flat with a monthly rent of $20,000 for the period from 1 July 2022 to 30 June 2024. Mr. Wong and Mrs. Wong lived in the flat. Mr. Wong paid total rent of $240,000 (i.e. $20,000 x 12 months) for the year of assessment 2023/24. Both Mr. Wong and Mrs. Wong had salaries tax payable for year of assessment 2023/24. They agreed to claim deduction of rent paid in equal shares.
Deduction allowable for the year of assessment 2023/24
Total amount of deduction allowable to Mr. Wong and Mrs. Wong
| Rent paid under tenancy | No. of tenant(s) | Qualifying rental amount | Maximum deduction | No. of months in contractual period | Deduction ceiling | Prescribed deduction amount (i.e. allowable deduction) |
| [A] | [B] | [C = A/B] | [D] | [E] | [F = D x E/12÷B] | [G = Lesser of C or F] |
| $240,000 | 1 | $240,000 | $100,000 | 12 | $100,000 | $100,000 |
Allocation of allowable deduction between Mr. Wong and Mrs. Wong
| Share of deduction | Amount | |
| Mr. Wong | 50% | $50,000 |
| Mrs. Wong | 50% | $50,000 |
| Total | 100% | $100,000 |
Mr. Wan and Mrs. Wan are husband and wife. They entered into a qualifying tenancy (T1) in respect of a residential flat with a monthly rent of $20,000 for the period from 1 July 2021 to 30 June 2023. Mr. Wan and Mrs. Wan lived in the flat until 30 June 2023 and then lived abroad until 30 September 2023. After Mr. Wan and Mrs. Wan came back to Hong Kong, they entered into a qualifying tenancy (T2) in respect of another residential flat as co-tenants with a monthly rent of $30,000 for the period from 1 October 2023 to 30 September 2025 and lived in the flat accordingly. For the year of assessment 2023/24, Mr. Wan and Mrs. Wan paid total rent of $60,000 (i.e. $20,000 x 3 months) under T1 and total rent of $180,000 (i.e. $30,000 x 6 months) under T2. Both Mr. Wan and Mrs. Wan had salaries tax payable for year of assessment 2023/24. They agreed that the rent paid under T1 would be claimed for deduction by Mr. Wan, whilst the rent paid under T2 would be claimed for deduction by Mrs. Wan.
Deduction allowable for the year of assessment 2023/24
Total amount of deduction allowable to Mr. Wan and Mrs. Wan
| Rent paid under tenancy | No. of tenant(s) | Qualifying rental amount | Maximum deduction | No. of months in contractual period | Deduction ceiling |
Prescribed deduction amount (i.e. allowable deduction) |
|
| [A] | [B] | [C = A/B x 2] | [D] | [E] | [F = D x E/12÷B x 2] | [G = Lesser of C or F] | |
| T1 | $60,000 | 2 | $60,000 | $100,000 | 3 | $25,000 | $25,000 |
| T2 | $180,000 | 2 | $180,000 | $100,000 | 6 | $50,000 | $50,000 |
| Total | $240,000 | $240,000 | $75,000 | $75,000 |
Allocation of allowable deduction between Mr. Wan and Mrs. Wan
| T1 | T2 | Total amount | |||
| Share of deduction | Amount | Share of deduction | Amount | ||
| Mr. Wan | 100% | $25,000 | - | - | $25,000 |
| Mrs. Wan | - | - | 100% | $50,000 | $50,000 |
| Total | 100% | $25,000 | 100% | $50,000 | $75,000 |
Mr. Ng entered into a qualifying tenancy (T1) in respect of a residential flat with a monthly rent of $20,000 for the period from 1 July 2022 to 30 June 2024. He lived in the flat and paid total rent of $240,000 (i.e. $20,000 x 12 months) for the year of assessment 2023/24. Ms. Kwok entered into a qualifying tenancy (T2) in respect of another residential flat with a monthly rent of $10,000 for the period from 1 October 2021 to 30 September 2023. She lived in the flat and paid total rent of $60,000 (i.e. $10,000 x 6 months) for the year of assessment 2023/24. Mr. Ng and Ms. Kwok got married on 1 October 2023. Ms. Kwok has since moved to live together with Mr. Ng in the flat under T1. Both Mr. Ng and Ms. Kwok had salaries tax payable for year of assessment 2023/24. They agree to claim the rent paid under T1 for the period from 1 October 2023 to 31 March 2024 in equal shares.
Deduction allowable for the period from 1 April 2023 to 30 September 2023 (i.e. before marriage)
| Rent paid under tenancy | No. of tenant(s) | Qualifying rental amount | Maximum deduction | No. of months in contractual period | Deduction ceiling | Prescribed deduction amount (i.e. allowable deduction) | |
| [A] | [B] | [C = A/B] | [D] | [E] | [F = D x E/12÷B] | [G = Lesser of C or F] | |
| Mr. Ng - T1 | $120,000 | 1 | $120,000 | $100,000 | 6 | $50,000 | $50,000 |
| Ms. Kwok - T2 | $60,000 | 1 | $60,000 | $100,000 | 6 | $50,000 | $50,000 |
Deduction allowable for the period from 1 October 2023 to 31 March 2024 (i.e. after marriage)
Total amount of deduction allowable to Mr. Ng and Ms. Kwok.
| Rent paid under tenancy | No. of tenant(s) | Qualifying rental amount | Maximum deduction | No. of months in contractual period | Deduction ceiling | Prescribed deduction amount (i.e. allowable deduction) | |
| [A] | [B] | [C = A/B] | [D] | [E] | [F = D x E/12÷B] | [G = Lesser of C or F] | |
| T1 | $120,000 | 1 | $120,000 | $100,000 | 6 | $50,000 | $50,000 |
Allocation of allowable deduction between Mr. Ng and Ms. Kwok
| Share of deduction | Amount | |
| Mr. Ng | 50% | $25,000 |
| Ms. Kwok | 50% | $25,000 |
| Total | 100% | $50,000 |
Deduction allowable for the year of assessment 2023/24
| Before marriage | After marriage | Total amount | |||
| Tenancy | Amount | Tenancy | Amount | ||
| Mr. Ng | T1 | $50,000 | T1 | $25,000 | $75,000 |
| Ms. Kwok | T2 | $50,000 | T1 | $25,000 | $75,000 |
| Total | $100,000 | $50,000 | $150,000 | ||