Property management companies in Hong Kong face unique accounting challenges that require specialized expertise and meticulous compliance. From managing multiple rental accounts across districts like Central, Tsim Sha Tsui, and Tung Chung to navigating complex IRD regulations, our Hong Kong CPAs provide comprehensive accounting solutions tailored to the property management sector.
With residential property transactions rising 20.3% year-on-year to reach 51,361 units in the first ten months of 2025, Hong Kong’s property management industry continues to expand, creating increased demand for professional accounting services that ensure compliance and financial accuracy.
Tax Compliance for Property Management Firms in Hong Kong
Property management companies operating in Hong Kong must comply with strict Inland Revenue Department requirements. Under the IRD’s profits tax regime, all companies with gross income must submit annual profits tax returns together with audited financial statements and tax computations. Even small corporations with gross income not exceeding HK$2 million can no longer file returns without supporting documents, making comprehensive bookkeeping essential.
Our team ensures your property management company benefits from Hong Kong’s two-tiered profits tax rates—8.25% on assessable profits up to HK$2 million and 16.5% on amounts exceeding that threshold. We handle distinguishing between deductible expenses (such as staff salaries, office rent, and insurance) and non-deductible items, ensuring your tax computation maximizes legitimate deductions while maintaining full IRD compliance.
The 20% statutory allowance applies to property owners receiving rental income, but property management companies operating as service providers fall under standard profits tax rules. We help you navigate these distinctions to optimize your tax position according to ird.gov.hk guidelines.
Property Management Payroll and MPF Administration
Managing payroll for property managers, security staff, maintenance teams, and administrative personnel across multiple properties requires precision and regulatory knowledge. Our Hong Kong payroll services handle all aspects of staff compensation, from calculating overtime for shift workers to managing leave entitlements under the Employment Ordinance.
MPF compliance represents a critical responsibility for property management firms. Both employers and employees must contribute 5% of relevant income monthly, capped at HK$1,500 per party based on the HK$30,000 income ceiling for 2026. We ensure timely contributions by the 10th of each month, helping you avoid the severe penalties associated with non-compliance—including potential fines up to HK$450,000 and imprisonment for up to four years.
Our payroll solutions integrate leave management, attendance tracking, and automated MPF calculations, providing your property management staff with convenient mobile access to payslips and leave balances while maintaining full MPFA compliance.
Managing Multiple Property Accounts and Trust Accounting
Property management companies typically handle numerous rental properties, each with separate bank accounts, tenant deposits, and owner funds. This complexity demands robust trust accounting practices to segregate client funds, track security deposits properly, and maintain accurate records for each property portfolio.
We implement systematic accounting procedures that track income and expenses across all managed properties, ensuring transparency in owner reports and preventing the mixing of funds. Our bookkeeping services establish clear audit trails for maintenance costs, management fees, tenant payments, and property-specific expenses—essential for both client reporting and IRD audit readiness.
The IRD requires businesses to maintain all receipts, ledgers, and financial records for at least seven years. We ensure your property management company meets these record-keeping obligations while providing monthly financial statements that give property owners complete visibility into their investments.
Year-End Compliance and Audit Preparation
Property management companies must prepare comprehensive year-end accounts that accurately reflect operations across all managed properties. Our Tsim Sha Tsui-based CPAs work with your property management firm to compile audited financial statements, prepare profits tax computations, and file all required IRD forms including employer returns (IR56B) and individual employment notifications (IR56E/IR56F).
We coordinate with approved auditors to ensure your financial statements meet Hong Kong Financial Reporting Standards and satisfy IRD filing requirements. Our proactive approach identifies potential compliance issues early, whether related to staff tax obligations, proper expense classifications, or revenue recognition across multiple properties and service streams.
FAQ: Property Management Accounting in Hong Kong
What accounting records must property management companies keep?
Property management companies must maintain detailed records of all income and expenses for each property, staff payroll documentation, MPF contribution records, tenant deposits held in trust, owner statements, bank reconciliations, and supporting documents for all transactions. These records must be retained for at least seven years per IRD requirements.
How are property management fees taxed in Hong Kong?
Property management companies pay profits tax on their service fee income at the two-tiered corporate rate of 8.25% on the first HK$2 million of assessable profits and 16.5% on amounts above that. Management fees are deductible business expenses for property owners under certain circumstances, but the 20% statutory allowance under property tax already covers such costs.
What are the MPF obligations for property management companies?
Property management firms must enroll all eligible employees aged 18-65 in approved MPF schemes and contribute 5% of relevant income monthly. Employees earning above HK$7,100 monthly also contribute 5%. Contributions must reach MPF trustees by the 10th of each month, with severe penalties for late or missing payments including surcharges and potential fines up to HK$450,000.
Do property management companies need annual audits?
Yes, all Hong Kong incorporated companies, including property management firms, must prepare audited financial statements annually and submit them with their profits tax returns to the IRD. Even companies with minimal gross income must comply with audit requirements unless specifically exempted under limited circumstances.
Partner with Hong Kong Property Management Accounting Experts
Our experienced team understands the unique financial challenges facing property management companies operating across Hong Kong’s diverse districts. From Kowloon to Hong Kong Island and the New Territories, we provide localized accounting expertise that keeps your property management business compliant, profitable, and positioned for growth.
Contact our Tsim Sha Tsui accounting team today for a free 15-minute consultation via WhatsApp or phone at +852 5929 1766. Let us handle your property management accounting, payroll, and tax compliance so you can focus on serving your property owners and tenants across Hong Kong.
