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e-Stamping services

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Ad valorem stamp duty (AVD)

  • Foreword –

ad valorem stamp duty (AVD) - Scale 1 and Scale 2

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 1), unless specifically exempted or provided otherwise. The major exception, amongst others, is where the property is a residential property, and the purchaser/transferee is a Hong Kong permanent resident (HKPR) who is acting on his/her own behalf and does not own any other residential property in Hong Kong at the time of acquisition. In such case, the instrument will be subject to AVD at lower rates (Scale 2). The 2014 (No. 2) Amendment Ordinance also advances the timing for charging AVD on non-residential property transactions from the conveyance on sale to the agreement for sale executed on or after 23 February 2013.

The Stamp Duty (Amendment) Ordinance 2018 (2018 Amendment Ordinance) was gazetted on 19 January 2018. Under the 2018 Amendment Ordinance, AVD at Scale 1 are divided into Part 1 (a flat rate of 15%) and Part 2 (original Scale 1 rates under the 2014 (No. 2) Amendment Ordinance) with effect from 5 November 2016. Part 1 of Scale 1 applies to instruments of residential property and Part 2 of Scale 1 applies to instruments of non-residential property. The 2018 Amendment Ordinance provides that any instruments of residential property executed on or after 5 November 2016 for the sale and purchase or transfer of residential property, unless specifically exempted or provided otherwise, will be subject to AVD at the rate under Part 1 of Scale 1, i.e. a flat rate of 15% of the consideration or value of the residential property, whichever is the higher. For HKPRs who change their residential property and wish to claim partial refund of the AVD paid on acquisition of the new property, the 2018 Amendment Ordinance also extends the time limit for the disposal of the original property from within 6 months to within 12 months after the date of conveyance of the new property if the new property is acquired on or after 5 November 2016.

The Stamp Duty (Amendment) (No. 2) Ordinance 2018 (2018 (No. 2) Amendment Ordinance) was gazetted on 20 April 2018. Under the 2018 (No. 2) Amendment Ordinance, unless specifically exempted or otherwise provided in the law, acquisition of more than 1 residential property under a single instrument executed on or after 12 April 2017 will be subject to AVD at the rate under Part 1 of Scale 1 – a flat rate of 15%, even if the purchaser/transferee is a HKPR who is acting on his/her own behalf and does not own any other residential property in Hong Kong at the time of acquisition.

The Stamp Duty (Amendment) Ordinance 2021 (2021 Amendment Ordinance) was gazetted on 19 March 2021. Under the 2021 Amendment Ordinance, unless provide otherwise, any instrument executed on or after 26 November 2020 for the sale and purchase or transfer of non-residential property will be subject to AVD at the rates under Scale 2.

The Stamp Duty (Amendment) (No. 2) Ordinance 2023 (2023 (No. 2) Amendment Ordinance) was gazetted on 25 May 2023 to give effect to a proposal in the 2023-24 Budget to make adjustments in the value bands on which the AVD at Scale 2 rates apply. Under the 2023 (No. 2) Amendment Ordinance, unless otherwise provided, the new value bands are applicable to any instrument executed at 11 a.m. on 22 February 2023 or thereafter for the sale and purchase or transfer of residential property or non-residential property that is subject to AVD at Scale 2 rates.

The Stamp Duty (Amendment) (Residential Properties) Ordinance 2024 (2024 Amendment (Residential Properties) Ordinance) was published in the Gazette on 9 February 2024 to give effect to the proposals relating to residential properties announced by the Chief Executive in his 2023 Policy Address. One of the proposals is to reduce the rate of AVD at Part 1 of Scale 1 from 15% to 7.5% with effect from 25 October 2023. Under the 2024 Amendment (Residential Properties) Ordinance, unless otherwise provided, the new rate will be applicable to any instrument executed on or after 25 October 2023 for the sale and purchase or transfer of residential property that is subject to AVD at Part 1 of Scale 1 rate.

The Stamp Duty (Amendment) Ordinance 2024 (2024 Amendment Ordinance) was published in the Gazette on 19 April 2024 to give effect to the proposals in the 2024-25 Budget to cancel all demand-side management measures for residential properties. Under the 2024 Amendment Ordinance, the AVD rate of 7.5% under Part 1 of Scale 1 is amended to the same as those of AVD at Scale 2 with effect from 28 February 2024.

Please refer to the FAQs and the illustrative examples for AVD –  Scale 1 and Scale 2

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Buyer's Stamp Duty (BSD)

  • Foreword –

The Stamp Duty (Amendment) Ordinance 2014 (2014 Amendment Ordinance) was gazetted on 28 February 2014. Among others, the 2014 Amendment Ordinance imposes Buyer's Stamp Duty (BSD) on residential property transactions with effect from 27 October 2012. Unless the transaction is exempted from BSD, any agreement for sale or conveyance on sale for acquisition of any residential property executed on or after 27 October 2012 will be subject to BSD. BSD is charged on residential property transactions, on top of the existing ad valorem stamp duty and the special stamp duty, if applicable.

The Stamp Duty (Amendment) (Residential Properties) Ordinance 2024 (2024 Amendment (Residential Properties) Ordinance) was published in the Gazette on 9 February 2024 to give effect to the proposals relating to residential properties announced by the Chief Executive in his 2023 Policy Address. One of the proposals is to lower the rate of BSD from 15% to 7.5% with effect from 25 October 2023. Under the 2024 Amendment (Residential Properties) Ordinance, unless otherwise provided, the new rate will be applicable to any instrument executed on or after 25 October 2023 for the sale and purchase or transfer of residential property that is subject to BSD.

The Stamp Duty (Amendment) Ordinance 2024 (2024 Amendment Ordinance) was published in the Gazette on 19 April 2024 to give effect to the proposals in the 2024-25 Budget to cancel all demand-side management measures for residential properties. Under the 2024 Amendment Ordinance, any instrument executed on or after 28 February 2024 for the sale and purchase or transfer of residential property is no longer subject to BSD.

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Special Stamp Duty (SSD)

  • Foreword –

With effect from 20 November 2010, unless the transaction is exempted from Special Stamp Duty (SSD) or SSD is not applicable, any residential property acquired on or after 20 November 2010, either by an individual or a company (regardless of where it is incorporated), and resold within 24 months (the property was acquired on or after 20 November 2010 and before 27 October 2012) or 36 months (the property was acquired on or after 27 October 2012), will be subject to SSD.

The Stamp Duty (Amendment) (Residential Properties) Ordinance 2024 (2024 Amendment (Residential Properties) Ordinance) was published in the Gazette on 9 February 2024 to give effect to the proposals relating to residential properties announced by the Chief Executive in his 2023 Policy Address. One of the proposals is to shorten the resale period during which SSD can be charged from three years to two years, i.e. shortening the period where the 10% SSD is applicable with effect from 25 October 2023. Under the 2024 Amendment (Residential Properties) Ordinance, unless otherwise provided, the new resale period will be applicable to any instrument executed on or after 25 October 2023 for the sale and purchase or transfer of residential property that is subject to SSD.

The Stamp Duty (Amendment) Ordinance 2024 (2024 Amendment Ordinance) was published in the Gazette on 19 April 2024 to give effect to the proposals in the 2024-25 Budget to cancel all demand-side management measures for residential properties. Under the 2024 Amendment Ordinance, any instrument executed on or after 28 February 2024 for the sale and purchase or transfer of residential property is no longer subject to SSD.

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Stamping of Tenancy Agreement

 

Demand-side Management Measures for Residential Properties

  • Foreword -

Against the backdrop of tight housing supply and solid demand for property purchase, the Government has since 2010 introduced several rounds of demand-side management measures to curb short-term speculation activities and reduce external demand.  This has been done to ensure the steady development of the property market and accord priority to the home ownership needs of the people of Hong Kong.  Having considered the latest market situation, the Financial Secretary in his 2024-25 Budget announced the proposal to cancel all demand-side management measures for residential properties with effect from 28 February 2024, that is starting from that day, no Special Stamp Duty (“SSD”) and Buyer’s Stamp Duty (“BSD”) needs to be paid for any residential property transactions, and Ad Valorem Stamp Duty (“AVD”) at 7.5% under Part 1 of Scale 1 is amended to the same as those of AVD at Scale 2.

The Stamp Duty (Amendment) Ordinance 2024 (“2024 Amendment Ordinance”) was published in the Gazette on 19 April 2024 to give effect to the proposal.  Under the 2024 Amendment Ordinance, any instrument executed on or after 28 February 2024 for the sale and purchase or transfer of residential property will no longer be subject to SSD and BSD.  The AVD rate of 7.5% under Part 1 of Scale 1 is amended to the same as those of AVD at Scale 2.  For instruments executed before 28 February 2024 for the sale and purchase or transfer of residential property, different types of stamp duty and the stamp duty refund / suspension arrangements under the talent attraction measures may be applicable depending on the specific circumstances.  For details, please refer to the relevant webpages ("Ad Valorem Stamp Duty", "Buyer's Stamp Duty", "Special Stamp Duty")

Please refer to the FAQs for details of the proposal.

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Talent Attraction Measure: Stamp duty suspension for eligible incoming talents

  • Foreword –

On 25 October 2023, the Chief Executive announced in his 2023 Policy Address that the Government would introduce a stamp duty suspension mechanism for eligible incoming talents purchasing residential property in Hong Kong.

The Stamp Duty (Amendment) (Residential Properties) Ordinance 2024 (2024 Amendment (Residential Properties) Ordinance) was published in the Gazette on 9 February 2024 and is deemed to have come into operation on 25 October 2023.  According to the 2024 Amendment (Residential Properties) Ordinance and subsequent amendments, for eligible incoming talents who bought the first residential property in Hong Kong on or after 25 October 2023 but before 28 February 2024, they can apply for a suspension of the liabilities in respect of Buyer’s Stamp Duty (7.5%) and the ad valorem Stamp Duty (AVD) at Part 1 of Scale 1 rate (7.5%) in relation to the instrument executed for the acquisition of the residential property, but they still need to pay AVD at Scale 2 rates.  Such that the overall stamp duty charged will be on par with that charged on first-time home buyers who are permanent residents.  Unless otherwise provided, such arrangement applies to any sale and purchase agreement entered into on or after 25 October 2023 but before 28 February 2024.  Upon becoming a Hong Kong permanent resident, they can apply for waiver in relation to the stamp duty suspended.  As with effect from 28 February 2024, sale and purchase or transfer of residential property is no longer subject to BSD, and AVD at Part 1 of Scale 1 rate is amended to the same as those of Scale 2 rates, the suspension mechanism is no longer applicable to instruments of residential property transaction executed on or after 28 February 2024.

Please refer to the FAQs (Q&As 22 – 41) for details of the proposal.

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Talent Attraction Measure: Stamp duty refund for eligible incoming talents

  • Foreword –

On 19 October 2022, the Chief Executive announced in his 2022 Policy Address that, to encourage incoming talents to stay in Hong Kong for long-term development, the Government would refund the extra stamp duty paid by eligible incoming talents in purchasing residential property in Hong Kong.

The Stamp Duty (Amendment) (No. 3) Ordinance 2023 was published in the Gazette on 30 June 2023 and is deemed to have come into operation on 19 October 2022.  According to the Amendment Ordinance and subsequent amendments, eligible incoming talents who purchase a residential property in Hong Kong on or after 19 October 2022 but before 25 October 2023, and subsequently become a Hong Kong permanent resident after residing in Hong Kong for seven years, they can apply for a refund of the Buyer’s Stamp Duty (15%) and the New Residential ad valorem Stamp Duty (15%) paid for the first residential property (or a residential property to replace their only residential property in Hong Kong) purchased and still held, but they still need to pay ad valorem stamp duty (AVD) at Scale 2 rates, such that the overall stamp duty charged will be on par with that charged on first-time home buyers who are Hong Kong permanent residents.

Eligible incoming talents include those who enter Hong Kong under specified talents admission schemes (including General Employment Policy, Admission Scheme for Mainland Talents and Professionals, Quality Migrant Admission Scheme, Immigration Arrangements for Non-local Graduates, Technology Talent Admission Scheme, Admission Scheme for the Second Generation of Chinese Hong Kong Permanent Residents and Top Talent Pass Scheme).

For further information about the measure, please refer to the FAQs and illustrative examples.  

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Stamp duty on transactions under Shanghai Connect and Shenzhen Connect

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Stamp duty on Mutual Recognition of Funds between the Mainland and Hong Kong

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Stamp Duty Assessment

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Business Registration

 

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Returns

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 Two-tiered Profits Tax Rates Regime

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Salaries tax concessions for eligible carried interest

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Greater Bay Area Youth Employment Scheme - Tax Issues

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Chargeability to Profits Tax on Gain from Property Transactions

 

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Application for Holdover of Provisional Tax

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Election for Personal Assessment

 

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Allowances and Deductions

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Payments and Refunds

 

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Tax Reserve Certificates

 

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e-Seminars

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Request for a Notice of No Objection (NNO) to a Company / Limited Partnership Fund (LPF) Being Deregistered

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Others

 

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