Originally published 26 February 2010

Keywords: revised stamp duty, sale, transfer, property, Hong Kong, new stamp duty rates

Revised Stamp Duty Rates

With reference to the Financial Secretary's 2010-11 Budget delivered on 24 February 2010, the stamp duty rates on transactions of properties valued over HK$20 million will be increased with effect from 1 April 2010.

The New Stamp Duty Rates on Sale or Transfer of Immovable Property in Hong Kong effective from 1 April 2010 are as follows:

Amount or value of the consideration

Rate (HK$)

Exceeds (HK$)

Does not exceed (HK$)

 

$2,000,000

$100

$2,000,000

$2,351,760

$100 + 10% of excess over $2,000,000

$2,351,760

$3,000,000

1.5%

$3,000,000

$3,290,320

$45,000 + 10% of excess over $3,000,000

$3,290,320

$4,000,000

2.25%

$4,000,000

$4,428,570

$90,000 + 10% of excess over $4,000,000

$4,428,570

$6,000,000

3%

$6,000,000

$6,720,000

$180,000 + 10% of excess over $6,000,000

$6,720,000

$20,000,000

3.75%

$20,000,000

$21,739,120

$750,000 + 10% of excess over $20,000,000

$21,739,120

 

4.25%

New Stamp Duty Rates Apply to All Kinds of Immovable Property

Please note that the new stamp duty rates will apply to all kinds of immovable properties, namely residential and non-residential properties.

The effective date (i.e. 1 April 2010) applies to the execution date of the chargeable instrument, i.e. (i) agreement for sale and purchase for residential property, and (ii) assignment for non-residential property.

Furthermore, a chargeable agreement of residential property valued over HK$20 million executed on and after 1 April 2010 will not be eligible to apply for a deferral of the payment of stamp duty.

Some examples of how the old and new rates of stamp duty will apply and when a chargeable agreement will not be eligible for a deferred payment application are given in the attached link to the Government website:

FAQ in respect of the stamp duty on transactions of property valuing over HK$20 million

http://www.ird.gov.hk/eng/faq/budget_stamp.htm

Those who have recently contracted to purchase property or are considering purchasing property should consider the dates of execution of the Provisional Agreement, Formal Agreement and the Assignment in order to take advantage of the old stamp duty rates.

We also attach the following link to the Government website on the stamp duty rates for sale or transfer or lease of immovable property in Hong Kong or transfer of Hong Kong stock for readers' ease of reference:

http://www.gov.hk/en/residents/taxes/stamp/stamp_duty_rates.htm

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