Taxpayers can claim deductions for home loan interest (HLI) under salaries tax and personal assessment.
The taxpayer has to satisfy the following conditions before a deduction can be granted:
- you are the owner of the dwelling (either as a sole owner, a joint tenant or a tenant in common) and ownership is by reference to the registered owner of the property as shown in the records of the Land Registry;
- the dwelling is a separate rateable unit under the Rating Ordinance: that is, it is situated in Hong Kong;
- the dwelling is used wholly or partly as your place of residence in the year of assessment (if the dwelling is partly used as the place of residence, the amount of interest deductible will be restricted accordingly);
- you pay HLI during the year of assessment on a loan for the acquisition of the dwelling
- the loan is secured by a mortgage or charge over the dwelling or over any other property in Hong Kong; and
- the lender is an organization prescribed under section 26E(9) of the Inland Revenue Ordinance (IRO), that is,
- the Government,
- a financial institution,
- a registered credit union,
- a licensed moneylender,
- the Hong Kong Housing Society,
- your employer, or
- any organization or association approved by the Commissioner of Inland Revenue.
Reference: https://www.ird.gov.hk/eng/faq/hli.htm