Property tax is imposed at a flat rate of 15% on the net assessable value of land or buildings situated in Hong Kong. The net assessable value is generally equal to the annual rental income derived from the property reduced by 20% as deemed repair expenses.
Property tax does not apply to corporations or individuals subject to profits tax on the rental income if exemption is obtained.
Estate duty is imposed on property which is located in Hong Kong passing on death of a person and includes gifts made not more than three years before death. Estate duty also applies to the assets of controlled companies. An exclusion from duty is allowed for the matrimonial home occupied by the surviving spouse.
Estate duty is computed at a flat rate on the principal value of property passing on death. Value below a threshold is not dutiable.
Stamp duty applies to instruments for the transfer of immovable properties in Hong Kong, leases on Hong Kong properties, Hong Kong stock and bearer instruments.
Relief from stamp duty is available in certain circumstances for transfers of immovable property and Hong Kong stock between related companies.
Capital duty of 0.6% applies to the creation of any new authorized capital, including the par value of the shares and the share premium. There is no capital duty on loan funding.
IMPORT AND EXCISE DUTY
Hong Kong is a free port and has no general tariff on imported goods except alcoholic beverages, tobacco, motor vehicles, petrol and other fuels if they are imported into or manufactured in Hong Kong for local consumption.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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