When do I receive the demand note for Rates and Government Rent?

Rates are one of Hong Kong's indirect taxes levied on properties. All properties must be valuated for a rateable value, which is the basis for calculating rates.

Government rent is the payment made by the Government lessee (the 'owner') to the Government in return for the right to hold and occupy the land for the term (i.e. duration) specified in the lease document. The Rating and Valuation Department (RVD) is responsible for collecting Government Rent from owners/occupants of properties in New Kowloon north of Boundary Street and the New Territories; properties with land leases granted on or after 27 May 1985; or properties with their non-renewable land leases extended on or after 27 May 1985.

Rates and Government rent are payable quarterly in advance. The issue date of demand note and last day of payment is as follows:

Upon receipt of the quarterly "Demand for Rates and/or Government Rent" (Demand), payers are required to make payment on or before the last day for payment, otherwise payers will receive a 5% surcharge immediately. A further 10% surcharge will be imposed on any amount remaining outstanding (including the 5% surcharge already imposed) six months after the original last day for payment. If the Government rent is not paid, the Government is entitled to take back the property under the Government Rights (Re-entry and Vesting Remedies) Ordinance. The owner will incur extra costs to get the property back.