A landlord is required to pay tax based on the "Net Assessable Value," which is calculated as follows:
Net Assessable Value = Assessable Value - Rates Paid - 20% Allowance
According to Section 5B of the Inland Revenue Ordinance,，the Assessable Value refers to the total amount of money paid by the tenant to the landlord during the tax year.
If the lease explicitly states that "management fees and other expenses, including water, electricity, and gas fees," are not paid to the landlord but are instead borne and paid by the tenant, such expenses cannot be considered part of the "Assessable Value."
However, if the lease does not clearly specify that these expenses are borne by the tenant, they may be regarded as part of the "Assessable Value," and the landlord would be required to pay tax on this amount.
Reference: "Chapter 112 - Inland Revenue Ordinance (IRO)" https://www.elegislation.gov.hk/hk/cap112!zh-Hant-HK?INDEX_CS=N
