Hong Kong Stamp Duty generally applies for transfer of Hong Kong company shares as well as Hong Kong immovable properties. Tenancy agreements are also subject to Hong Kong Stamp Duty.
With the recent abolishment of the Buyer's Stamp Duty (BSD), Special Stamp Duty (SSD), and New Residential Properties Stamp Duty (NRSD), the market has returned to a "zero chili" era. This change definitely benefits all the potential investors of Hong Kong residential property market as well as further enhances the flexibility to hold properties via companies.
Intra group Stamp duty relief / exemption
Section 45 of the Stamp Duty Ordinance (“SDO”) provides relief for intra group transactions, specifically for the transfer of shares or a property among companies within a group. This stamp duty relief allows for the stamp duty exemption on the transfer documents, subject to certain conditions. The main benefit is that it significantly reduces the financial burden for companies engaging in intra group restructuring or reorganization.
There are also other exemptions available to stamp duty.
Stamp duty planning
It is important to recognize that stamp duty may impose significant financial burden to taxpayers, or it may be an unexpected cost to taxpayers. For example, stamp duty may be a significant issue when a family is planning on setting up trust or a multinational enterprise is carrying out restructuring exercises. A tax expert could definitely help you find and mitigate tax risks via well planned efficient transaction structures.
Stamp Duty Calculator
Stamp Duty Calculator can be found here:-
https://www.gov.hk/en/residents/taxes/etax/services/stamp_duty_computation.htm
How can we help?
Our services encompass a comprehensive range of tax advisory and application assistance to ensure our clients' transactions are optimized for tax efficiency.
We specialize in applying for:-
- Application of Section 45 Stamp Duty Relief;
- Application of Section 27(5) Stamp Duty Exemption;
- Tax Advisory on the acquisition of Hong Kong Immovable Property and shares and relevant property conveyance services; and
- Tax Advisory on Group Restructuring (including Hong Kong and China Tax implications).
Stamp Duty Rate Table
1. For sale or transfer of immovable property
Amount or value of the consideration of the property (whichever is higher) | Rates | |
Exceeds | Does not exceed | |
HK$3,000,000 | 100 | |
HK$3,000,000 | HK$3,528,240 | $100 + 10% of excess over HK$3,000,000 |
HK$3,528,240 | HK$4,500,000 | 1.5% |
HK$4,500,000 | HK$4,935,480 | $67,500 + 10% of excess over HK$4,500,000 |
HK$4,935,480 | HK$6,000,000 | 2.25% |
HK$6,000,000 | HK$6,642,860 | $135,000 + 10% of excess over HK$6,000,000 |
HK$6,642,860 | HK$9,000,000 | 3% |
HK$9,000,000 | HK$10,080,000 | $270,000 + 10% of excess over HK$9,000,000 |
HK$10,080,000 | HK$20,000,000 | 3.75% |
HK$20,000,000 | HK$21,739,120 | $750,000 + 10% of excess over HK$20,000,000 |
HK$21,739,120 | 4.25% | |
2. For lease of immovable property
Term | Rate | |
Not defined or is uncertain | 0.25% of the yearly or average yearly rent | |
Exceeds | Does not exceed | |
1 year | 0.25% of the total rent payable over the term of the lease | |
1 year | 3 years | 0.5% of the yearly or average yearly rent |
3 years | 1% of the yearly or average yearly rent | |
Key money, construction fee, etc. mentioned in the lease | 4.25% of the consideration if rent is also payable under the lease. Otherwise, same duty as for a sale of immovable property | |
The yearly rent/average yearly rent/total rent has to be rounded-up to the nearest $100.
3. Transfer of Hong Kong stock
Nature of document | Rate |
Contract Note for sale or purchase of Hong Kong stock | 0.1% of the amount of the consideration or of its value on every sold note and every bought note |
Transfer operating as a voluntary disposition inter vivos | $5 + 0.2% of the value of the stock to be transferred |
Transfer of any other kind | $5 |
