Stamp Duty

What are the Scale 1 and Scale 2 Ad valorem stamp duty?

The Stamp Duty (Amendment) (No. 2) Ordinance 2014 (2014 (No. 2) Amendment Ordinance) was gazetted on 25 July 2014. The 2014 (No. 2) Amendment Ordinance provides that the ad valorem stamp duty (AVD) payable on certain instruments dealing with immovable properties executed on or after 23 February 2013 shall be computed at higher rates (Scale … Read more

In general, how is ad valorem stamp duty (AVD) applicable to residential and non-residential properties in Hong Kong?

For residential properties, the ad valorem tax (AVD) generally applies to residential properties in Hong Kong. For non-residential properties, unless specifically exempted or otherwise provided, only Part 2 of Scale 1 will apply to the acquisition of all non-residential properties from 5 November 2016 to 25 November 2020. Reference: https://www.ird.gov.hk/eng/faq/index.htm#avd 

When will I have to pay an “adjudication fee”?

Anyone can request the Collector of Stamp Revenue to assess whether certain documents are chargeable with stamp duty and on the amount chargeable thereon. This may be subject to an adjudication fee of $50. Not all documents are subject to such fees, for example, instruments operating as gifts. These exempted documents are listed under the … Read more

What is the time limit for stamping?

Different documents have different time limits for stamping. Here are some time limits for some common documents: Nature of document Time limit (within __ after the date of execution) Conveyance on sale (including deed of gift) 30 days Lease 30 days Contract note for purchase or sale of Hong kong stock 2 days (if effected … Read more

What are the consequences of omission or late stamping a document?

Both the landlord and tenant will be liable to civil proceedings by the Collector of Stamp Duty of the Inland Revenue Department when there is an omission to stamp the relevant document. Penalties will be imposed if the tenancy agreement is not stamped before or within the time for stamping, by the Collector of the … Read more

How do I file stamp duty in Hong Kong?

For stamp duty assessment, depending on the type of transaction, relevant documents should be submitted to the Inland Revenue Department. Stamping can be conducted electronically or manually.  Stamping of Agreements and Assignments of Sale and Purchase cases Stamping of Agreements and Assignments of sale and purchase cases can be conducted with or without presenting the … Read more

How does stamp duty work in Hong Kong?

Stamp duty is charged on documents connected with conveyance on sale, agreement for sale or lease of immovable property, and share transfer.  For the first three situations, all parties and all other persons executing such transactions are liable for stamp duty. For share transfer, the agent or the principal affecting the sale or purchase of … Read more