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Deduction for domestic rent additional deduction for the year of assessment 2024/25 - Illustrative Examples

Example 1 Example 2 Example 3 Example 4 Example 5 Example 6 Example 7 Example 8
No. of tenant(s) under the tenancy One One One One Two Two Two Three
Tenant Self Self Spouse Spouse Self and Spouse Self and Spouse Self and Spouse Self, Spouse and a third party
Period of tenancy in the year of assessment 12 months 6 months 12 months 12 months 12 months 12 months 6 months 9 months
Claimant(s) are married persons No No Yes Yes Yes Yes Yes Yes
Self elects to claim additional deduction Yes Yes Yes Yes Yes Yes Yes Yes
Spouse elects to claim additional deduction N/A N/A Yes No Yes No No No
Total domestic rent paid during the year $150,000 $120,000 $120,000 $120,000 $150,000 $150,000 $150,000 $135,000

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Example 1

Mr. Chan was not a married person in the year of assessment 2024/25. He entered into a qualifying tenancy in respect of a residential flat with a monthly rent of $12,500 (“the tenancy”). He lived in the flat and paid a total rent of $150,000 for the year of assessment 2024/25. His child was born on 1 January 2024. He resided with that child in Hong Kong for a continuous period of not less than 6 months during the year of assessment 2024/25. He would like to claim deduction of domestic rent (“DR”) in respect of the tenancy and also made an election in writing to use DR additional deduction ceiling amount for the year of assessment 2024/25.

Deduction allowable for the year of assessment 2024/25

Rent paid under the tenancy No. of tenant

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]

$150,000 1 $150,000 Basic $100,000 12 Basic $100,000 $120,000
Additional $20,000 Additional *$20,000
Total $120,000 Total $120,000

“Basic” means DR basic deduction

“Additional” means DR additional deduction

* Mr. Chan will be regarded as having been allowed DR additional deduction for the year of assessment 2024/25

 

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Example 2

Mr. Wong was not a married person during the year of assessment 2024/25. He entered into a qualifying tenancy in respect of a residential flat with a monthly rent of $20,000 effective from 1 October 2024 (“the tenancy”). He lived in the flat and paid a total rent of $120,000 for the period of 1 October 2024 to 31 March 2025. His child was born on 1 January 2024. He resided with that child in Hong Kong for a continuous period of not less than 6 months during the year of assessment 2024/25. He would like to claim deduction of domestic rent (“DR”) in respect of the tenancy and also made an election in writing to use DR additional deduction ceiling amount for the year of assessment 2024/25.

Deduction allowable for the year of assessment 2024/25

Rent paid under the tenancy No. of tenant

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 Basic $100,000 6 Basic $50,000 $60,000
Additional $20,000 Additional *$10,000
Total $120,000 Total $60,000

“Basic” means DR basic deduction

“Additional” means DR additional deduction

* Mr. Wong will be regarded as having been allowed DR additional deduction for the year of assessment 2024/25

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Example 3

Mr. Cheung and Mrs. Cheung are married couple. Mrs. Cheung entered into a qualifying tenancy in respect of a residential flat with a monthly rent of $10,000 (“the tenancy”). They lived in the flat and paid a total rent of $120,000 for the year of assessment 2024/25. Their child was born on 1 January 2024. They resided with that child in Hong Kong for a continuous period of not less than 6 months during the year of assessment 2024/25. Mrs. Cheung would like to claim deduction of domestic rent (“DR”) in respect of the tenancy. Both Mr. Cheung and Mrs. Cheung made an election in writing to use DR additional deduction ceiling amount for the year of assessment 2024/25.

Deduction allowable for the year of assessment 2024/25

Total amount of deduction allowable to Mr. Cheung and Mrs. Cheung

Rent paid under the tenancy No. of tenant

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 Basic $100,000 12 Basic $100,000 $120,000
Additional $20,000 Additional *$20,000
Total $120,000 Total $120,000

“Basic” means DR basic deduction

“Additional” means DR additional deduction

* Both Mr. Cheung and Mrs. Cheung will be regarded as having been allowed DR additional deduction for the year of assessment 2024/25

 

Allocation of allowable deduction between Mr. Cheung and Mrs. Cheung

Prescribed deduction amount
(i.e. allowable deduction)
[G = Lesser of C or F]
Share of deduction Total amount
Mr. Cheung 0% $0
Mrs. Cheung 100% $120,000
Total 100% $120,000

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Example 4

Mr. Lee and Mrs. Lee are married couple. Mrs. Lee entered into a qualifying tenancy in respect of a residential flat with a monthly rent of $10,000 (“the tenancy”). They lived in the flat and paid a total rent of $120,000 for the year of assessment 2024/25. Their child was born on 1 January 2024. They resided with that child in Hong Kong for a continuous period of not less than 6 months during the year of assessment 2024/25. Mr. Lee would like to claim deduction of domestic rent (“DR”) in respect of the tenancy and also made an election in writing to use DR additional deduction ceiling amount for the year of assessment 2024/25. Mrs. Lee, however, did not make that election.

Deduction allowable for the year of assessment 2024/25

Total amount of deduction allowable to Mr. Lee and Mrs. Lee

Rent paid under the tenancy No. of tenant

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]
@[F = D x E/12÷B÷2]

[G = Lesser of C or F]

$120,000 1 $120,000 Basic $100,000 12 Basic #$100,000 $110,000
Additional $20,000 Additional @*$10,000
Total $120,000 Total $110,000

“Basic” means DR basic deduction

“Additional” means DR additional deduction

* Mr. Lee will be regarded as having been allowed DR additional deduction for the year of assessment 2024/25

 

Allocation of allowable deduction between Mr. Lee and Mrs. Lee

Prescribed deduction amount
(i.e. allowable deduction)
[G = Lesser of C or F]
Share of deduction Total amount
Mr. Lee 100% $110,000
Mrs. Lee 0% $0
Total 100% $110,000

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Example 5

Mr. Ho and Mrs. Ho are married couple. They entered into a qualifying tenancy in respect of a residential flat with a monthly rent of $12,500 (“the tenancy”). They lived in the flat and paid a total rent of $150,000 for the year of assessment 2024/25. Their child was born on 1 January 2024. They resided with that child in Hong Kong for a continuous period of not less than 6 months during the year of assessment 2024/25. They agreed to claim the domestic rent (“DR”) paid of $150,000 under the tenancy in equal share and both of them also made an election in writing to use DR additional deduction ceiling amount for the year of assessment 2024/25.

Deduction allowable for the year of assessment 2024/25

Total amount of deduction allowable to Mr. Ho and Mrs. Ho

Rent paid under the tenancy No. of tenant

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]

$150,000 2 $150,000 Basic $100,000 12 Basic $100,000 $120,000
Additional $20,000 Additional *$20,000
Total $120,000 Total $120,000

“Basic” means DR basic deduction

“Additional” means DR additional deduction

* Mr. Ho and Mrs. Ho will be regarded as having been allowed DR additional deduction for the year of assessment 2024/25

 

Allocation of allowable deduction between Mr. Ho and Mrs. Ho

Prescribed deduction amount
(i.e. allowable deduction)
[G = Lesser of C or F]
Share of deduction Total amount
Mr. Ho 50% $60,000
Mrs. Ho 50% $60,000
Total 100% $120,000

 


Example 6

Mr. Au and Mrs. Au are married couple. They entered into a qualifying tenancy in respect of a residential flat with a monthly rent of $12,500 (“the tenancy”). They lived in the flat and paid a total rent of $150,000 for the year of assessment 2024/25. Their child was born on 1 January 2024. They resided with that child in Hong Kong for a continuous period of not less than 6 months during the year of assessment 2024/25. For the year of assessment 2024/25, Mr. Au and Mrs. Au agreed to claim the domestic rent (“DR”) paid of $150,000 under the tenancy in the share of 40% and 60% respectively. Mr. Au also made an election in writing to use DR additional deduction ceiling amount. Mrs. Au, however, did not make that election.

Deduction allowable for the year of assessment 2024/25

Total amount of deduction allowable to Mr. Au and Mrs. Au

Rent paid under the tenancy No. of tenant

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]
@[F = D x E/12÷B x 2÷2]

[G = Lesser of C or F]

$150,000 2 $150,000 Basic $100,000 12 Basic #$100,000 $110,000
Additional $20,000 Additional @*$10,000
Total $120,000 Total $110,000

“Basic” means DR basic deduction

“Additional” means DR additional deduction

* Mr. Au will be regarded as having been allowed DR additional deduction for the year of assessment 2024/25

 

Allocation of allowable deduction between Mr. Au and Mrs. Au

Prescribed deduction amount
(i.e. allowable deduction)
[G = Lesser of C or F]
Share of deduction Total amount
Mr. Au 40% $44,000
Mrs. Au 60% $66,000
Total 100% $110,000

 


Example 7

Mr. Chau and Mrs. Chau are married couple. They entered into a qualifying tenancy in respect of a residential flat with a monthly rent of $25,000 effective from 1 October 2024 (“the tenancy”). They lived in the flat and paid a total rent of $150,000 for the period of 1 October 2024 to 31 March 2025. Their child was born on 1 January 2024. They resided with that child in Hong Kong for a continuous period of not less than 6 months during the year of assessment 2024/25. Mr. Chau would like to claim deduction of domestic rent (“DR”) in respect of the tenancy and also made an election in writing to use DR additional deduction ceiling amount for the year of assessment 2024/25. Mrs. Chau, however, did not make that election.

Deduction allowable for the year of assessment 2024/25

Total amount of deduction allowable to Mr. Chau and Mrs. Chau

Rent paid under the tenancy No. of tenant

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]
@[F = D x E/12÷B x 2÷2]

[G = Lesser of C or F]

$150,000 2 $150,000 Basic $100,000 6 Basic #$50,000 $55,000
Additional $20,000 Additional @*$5,000
Total $120,000 Total $55,000

“Basic” means DR basic deduction

“Additional” means DR additional deduction

* Mr. Chau will be regarded as having been allowed DR additional deduction for the year of assessment 2024/25

 

Allocation of allowable deduction between Mr. Chau and Mrs. Chau

Prescribed deduction amount
(i.e. allowable deduction)
[G = Lesser of C or F]
Share of deduction Total amount
Mr. Chau 100% $55,000
Mrs. Chau 0% $0
Total 100% $55,000

 


Example 8

Mr. Wu and Mrs. Wu are married couple. The couple and Mr. Wu’s father entered into a qualifying tenancy in respect of a residential flat with a monthly rent of $15,000 effective from 1 July 2024 (“the tenancy”). The couple lived in the flat and paid a total rent of $135,000 for the period of 1 July 2024 to 31 March 2025. Their child was born on 1 January 2024. They resided with that child in Hong Kong for a continuous period of not less than 6 months during the year of assessment 2024/25. Mr. Wu would like to claim deduction of domestic rent (“DR”) in respect of the tenancy and also made an election in writing to use DR additional deduction ceiling amount for the year of assessment 2024/25. Mrs. Wu, however, did not make that election.

Deduction allowable for the year of assessment 2024/25

Total amount of deduction allowable to Mr. Wu and Mrs. Wu

Rent paid under the tenancy No. of tenant

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]
@[F = D x E/12÷B x 2÷2]

[G = Lesser of C or F]

$135,000 3 $90,000 Basic $100,000 9 Basic #$50,000 $55,000
Additional $20,000 Additional @*$5,000
Total $120,000 Total $55,000

“Basic” means DR basic deduction

“Additional” means DR additional deduction

* Mr. Wu will be regarded as having been allowed DR additional deduction for the year of assessment 2024/25

 

Allocation of allowable deduction between Mr. Wu and Mrs. Wu

Prescribed deduction amount
(i.e. allowable deduction)
[G = Lesser of C or F]
Share of deduction Total amount
Mr. Wu 100% $55,000
Mrs. Wu 0% $0
Total 100% $55,000