Stamp duty [SD] is payable by all parties
executing a document in relation to: (a) purchase and sale of a real
property, (b) leasing of a real property, or (c) purchase and sale of
company shares. Real property means a land, a building, or part of a land
and building. The duty rate for purchase and sale of a real property is as
Purchase and sale of real property
In land law, assignment of landed property must
be by deed; transfer of an interest in land must be evidenced in
writing. Penalty for delay and legal consequence of non-stamping is
same as those for leasing.
SD = SD rate x Consideration
Consideration includes waiver of debt, vide
S24(1) . Disclosure of full information for SD is required,
vide S11(1)․Non-disclosure can lead to criminal prosecution with
level 6 penalty and 1 yr imprisonment, vide S11(2)
SD rate varies with Consideration.
Marginal relief computation for excess of consideration slightly
over marginal band-rate.
From 23 Feb 2013, New AVD should apply;
and Old SD is still applicable to the purchase of residential
property by a Hong Kong permanent resident who does not own any
other residential property in Hong Kong at the time of purchase.
New AVD rates apply from 23 Feb 2013
onward: consideration below $2,000,000: SD rate 1.5%; $2,000,001 to
$3,000,000 SD rate 3%; $3,000,001 to $4,000,000 SD rate 4.5%;
$4,000,001 to $6,000,000 SD rate 6%; $6,000,001 to $20,000,000 SD
rate 7.5%; $20,000,001 and above SD rate 8.5%
Old SD rates apply to purchase of residential
property by HK permanent resident without any residential property
in HK: consideration below $2,000,000: SD $100; $2,000,001 to
$3,000,000 SD rate 1.5%; $3,000,001 to $4,000,000 SD rate 2.25%;
$4,000,001 to $6,000,000 SD rate 3%; $6,000,001 to $20,000,000 SD
rate 3.75%; $20,000,001 and above SD rate 4.25%
From 27 October 2012 onward, any
residential property acquired by any person (including a company
incorporated) except a Hong Kong Permanent Resident will be
subject to the Buyer Stamp Duty at 15%, on top of the
existing stamp duty and the special stamp duty if applicable.
For residential property purchased between 20
November 2010 and 26 October 2012 and sold within 24 months, Special
Stamp Duty is charged at old rates as follows: 15% for sale within 6
months; 10% for sale within 6 to 12 months; 5% for sale within 12 to
For residential property purchased from 27
October 2012 onward and sold within 36 months, Special Stamp
Duty is charged at new rates as follows: 20% for sale
within 6 months; 15% for sale within 6 to 12 months; 10% for sale
within 12 to 36 months.
New AVD and OSD is payable within 30 days of the
execution of Sale and Purchase Agreement. A duty of $100 is
payable within 30 days of the execution of Assignment Deed. No SD
is payable on Provisional Sale and Purchase Agreement.
Except Buyer Stamp Duty all parties executing the
documents are liable to pay stamp duty. In practice, the stamp duty is
usually paid by the purchaser based on on the standard provisional agreement if
not amended by the related parties.
exemption for the transaction with government and Housing Authority
Full exemption for gifts made to charitable institution.
No SD is
payable if marriage is the consideration for the transfer of property.
No SD is
payable if there is no change in beneficial interest.
S45 exemption is granted
for transfer of property between associated companies. See below.
Delay in stamping causes
Delay less than one month: penalty is two times the SD
Delay 1 to 2 months: penalty is four times the SD
Delay more than 2
months: penalty is ten times the SD.
Collector has discretionary
power to waive the whole or part of the penalty.
take legal action to recover the unpaid duty.
instrument which is not stamped is not admissible as evidence in
legal proceedings except criminal proceedings or recovery action by IRD.
Purchase and sale of
The duty rate on purchase
or sale of private shares is 0.2% of the value of the transaction. For shares
listed on stock exchange, the duty rate is 0.1% on the transaction value of
bought note (payable by buyer) and 0.1% on sold note (payable by seller).
SD is levied on bought note and sold note of the
shares listed on the HK Stock Exchange. The SD rate for the bought
note and the sold note is 0.1% on the value of each transaction. SD
for instrument of transfer is $5.
For transfer of shares of a
private company, SD is 0.2% on the value of the shares transferred
payable within 2 days of the execution of the contract note and $5
for the instrument of transfer.
Consideration includes waiver of debt and injection of capital: vide
S27 of SDO.
Disclosure of full information for SD is required. Non-disclosure can
lead to criminal prosecution with level 6 penalty and 1 year imprisonment.
is available for intra-group transfer of shares or property between
associated companies. Adjudication for exemption is required. An
associated company means one is the beneficial owner of at least 90%
of the issued share capital of the other, or if a third company is
the beneficial owner of at least 90% of the issued share capital of
each. The associated relationship must remain for at least 2 years
after the transfer.
Beneficial ownership is determined
by substance. B shares without voting rights cannot qualify S45
exemption: vide Arrowtown Assets Ltd. case.
parties executing the documents are liable to pay stamp duty. But in practice,
the stamp duty is usually shared equally between buyer and seller.
late stamping are same as those of purchase and sale of property.
A lease for 3 years or
more must be in writing. If a written lease is executed, SD must be
paid within 30 days of the execution. A duty of $5 is payable on any
duplicate of the lease.
rate for leasing of a
real property is as
Length of lease
Less than 1
0.25% of the total rent
1 year to 3 years
0.5% of the yearly rent
more than 3 years
1%* of the yearly rent
Key money etc.
4.25% of the consideration
Duplicate or counterpart
$5 per copy
SD = SD rate x Yearly
rent 全年租金; plus 4.25% of premium if rent is also payable under the
consideration depends on a future event. If consideration cannot be
ascertained, no stamp duty is payable. If a maximum amount is
specified, use the maximum amount. If only a minimum amount is
specified, use the minimum amount. Example: A shop is let out
for 2 years at a monthly rent of between $400,000 and $300,000
depending on monthly sales. SD is $400,000 x 12 x 0.5% =
All parties executing
the documents are liable to pay stamp duty. But in practice, the
stamp duty is usually shared equally between the landlord and the
Consequences of late stamping are same as those
of purchase and sale of property. See above.
Stamp Duty for HK
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