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What is "lease premium”?

What is "lease premium”?

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Lee Jun
 

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Lease premium is a non-refundable lump sum payment made by the tenant to the owner upon the signing of the tenancy agreement. It is part of the consideration for using the property and is chargeable to Property Tax. If the period of the lease is not contained within any one year of assessment, the owner should spread the lease premium into equal monthly instalments over the period of the lease or a period of 3 years, whichever is the shorter, and include the relevant amount as rental income for the years of assessment concerned.

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Shen Qiao
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