Can I Claim Office Rent as a Business Expense in Hong Kong?
Yes. Rent paid for business premises in Hong Kong is fully deductible as a trading expense under Section 16. This includes co-working memberships and serviced office fees.
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What Inland Revenue Department (IRD) says
Section 16 of the Inland Revenue Ordinance allows deduction of rent for business premises used wholly and exclusively for the trade, profession, or business. Rent must relate to premises used for the purpose of generating the assessable profits. Serviced offices and co-working arrangements are treated identically to traditional office leases. Stamp duty on a lease is 0.25 percent to 1 percent of the average annual rent, depending on the lease term, and must generally be stamped within 30 days of execution. A lease premium paid to secure the tenancy is capital in nature.
When you can claim
- Monthly rent under a standard commercial lease agreement in Hong Kong
- Co-working desk or office membership fees (WeWork, The Executive Centre, etc.)
- Serviced office packages including meeting room access and secretarial support
- Rates paid directly by the tenant (normally paid by landlord and charged via rent)
- Air conditioning charges and management fees under the lease terms
- Management fees and air conditioning charges that the lease requires the tenant to pay
When you cannot claim
- Rent paid for residential premises used as a home (home-office claims are proportional only)
- Lease premium paid to secure a long-term tenancy (capital in nature, not revenue)
- Rent for premises used for both personal and business purposes without clear allocation
- Rent for premises that are empty and not used for the business
Good to know
Pro tip: Rental agreements should be in the company's name rather than the director's personal name to avoid a challenge on whether the expense was incurred by the company. Keep lease agreements and rent receipts. If the premises are subleased from a related party, the IRD will want evidence that the rent charged is at market rate.
Important: Business Registration Certificates must show the business premises, and every business operating in Hong Kong must hold one, with the 2026/27 fee at HKD 2,350 for a 1-year certificate and HKD 6,170 for a 3-year certificate. A business that moves must update the IRD and the Companies Registry.
Stop guessing what you can claim in Hong Kong
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