2. My solely-owned property yielded a rental income of $30,000 per month until the tenant left on 31 May 2023. It was let again after 3 months' vacancy at a reduced monthly rental of $24,000. Can I apply to pay less property tax (or to holdover/defer payment of provisional tax)?

2. My solely-owned property yielded a rental income of $30,000 per month until the tenant left on 31 May 2023. It was let again after 3 months' vacancy at a reduced monthly rental of $24,000. Can I apply to pay less property tax (or to holdover/defer payment of provisional tax)?

Yes, compared with that for 2022/23, your rental income for 2023/24 would be reduced by more than 10%. You can apply for a partial holdover of the provisional Property Tax on the grounds of rent reduction.

You must submit the written application to the Inland Revenue Department not later than 28 days before the due date for payment of the provisional tax, or 14 days after the issue of the relevant demand note, whichever is the later. The amount of provisional tax to be held-over would be $15,840 ($43,200 – $27,360), computed as follows:

Can I apply for holdover of provisional tax on other grounds?

You may apply for complete or partial holdover of provisional tax within the time limit described above if any one of the following conditions can be satisfied: 

• a reduction in more than 10% of provisional year's estimated assessable value (please refer to the figures shown in the demand note);
• you cease to own the property in 2023/24, thus your rental income is reduced in that assessment year;
• you have chosen the Personal Assessmentand it would likely reduce your overall tax bill; or
• you have raised an objection against the Property Tax assessment for the preceding year.