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The Stamp Duty (Amendment) Ordinance 2024 ("2024 Amendment Ordinance") was published in the Gazette on 19 April 2024. 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. The following Illustrative examples of the application and computation of SSD are only applicable to residential properties acquired on or after 20 November 2010 and was disposed of before 28 February 2024.
Example 1 (Residential property acquired before 20 November 2010)
1.
Q:
Mr. Chiu signed a provisional agreement for sale to acquire a residential property on 15 September 2010. Subsequently, he signed a provisional agreement for sale to dispose of the property on 20 December 2010. Any SSD liability when Mr. Chiu disposed of the property?
A:
As Mr. Chiu acquired the subject property before 20 November 2010 (the effective date of SSD), no SSD is payable when he signed the provisional agreement for sale to dispose of the property on 20 December 2010.
Example 2 (Residential property acquired between 20 November 2010 and 26 October 2012 and disposed of / transferred after 24 months from the date of acquisition)
2.
Q:
Mr. Chan acquired a residential property on 22 March 2011 and disposed of it on 30 November 2013. Any SSD liability when Mr. Chan disposed of the property?
A:
No SSD is payable because the subject property was acquired before 27 October 2012 and is disposed of/transferred after 24 months from the date of acquisition.
Example 3 (Property acquired between 20 November 2010 and 26 October 2012 and the holding period is 6 months or less)
3.
Q:
Mr. Ho acquired a residential property on 10 September 2011 and disposed of it for $6.5M on 9 March 2012. How to calculate the holding period of the property? What is the rate of SSD? What is the amount of SSD payable?
A:
For the purposes of SSD, the property holding period is calculated based on the calendar months, i.e. the period from a certain day in a month to the preceding day in the following calendar month is counted as 1 month. In the above example, Mr. Ho has held the property for exactly 6 months. The applicable rate of SSD is therefore 15%. The amount of SSD payable is $975,000, i.e. 15% of $6.5M.
Example 4 (Property acquired between 20 November 2010 and 26 October 2012 and the holding period is more than 6 months but not more than 12 months)
4.
Q:
Mr. Ho acquired a residential property on 10 September 2011 and disposed of it for $6.5M on 10 March 2012. How to calculate the holding period of the property? What is the rate of SSD? What is the amount of SSD payable?
A:
Mr. Ho disposed of the subject property on 10 March 2012. He has held the property for more than 6 months but not more than 12 months. The applicable rate of SSD is 10%. The amount of SSD payable is $650,000, i.e. 10% of $6.5M.
Example 5 (Property was acquired between 20 November 2010 and 26 October 2012 and the holding period is more than 12 months but not more than 24 months)
5.
Q:
Mr. Wong acquired a residential property on 2 February 2011 and disposed of it for $1.8M on 18 August 2012. How to calculate the holding period of the property? What is the rate of SSD? What is the amount of SSD payable?
A:
The subject property was acquired after 19 November 2010 and disposed of for more than 12 months but within 24 months from the date of acquisition. The applicable SSD rate is 5%. The amount of SSD payable is $90,000, i.e. 5% of $1.8M.
Example 6 (Property acquired on or after 27 October 2012 and the holding period is 6 months or less)
6.
Q:
Mr. Wong acquired a residential property on 1 November 2012 and disposed of it for $3M on 1 January 2013. How to calculate the holding period of the property? What is the rate of SSD? What is the amount of SSD payable?
A:
The subject property was acquired after 26 October 2012 and disposed of within 6 months from the date of acquisition. The applicable SSD rate is 20%. The amount of SSD payable is $600,000, i.e. 20% of $3M.
Example 7 (Property acquired on or after 27 October 2012 and the holding period is more than 6 months but not more than 12 months)
7.
Q:
Mr. Wong acquired a residential property on 1 November 2012 and disposed of it for $3M on 15 September 2013. How to calculate the holding period of the property? What is the rate of SSD? What is the amount of SSD payable?
A:
The subject property was acquired after 26 October 2012 and disposed of after more than 6 months but within 12 months from the date of acquisition. The applicable SSD rate is 15%. The amount of SSD payable is $450,000, i.e. 15% of $3M.
Example 8 (Property acquired on or after 27 October 2012 and the holding period is more than 24 months but not more than 36 months)
8.
Q:
Mr. Wong acquired a residential property on 1 November 2012 and disposed of it for $4M on 15 December 2014. How to calculate the holding period of the property? What is the rate of SSD? What is the amount of SSD payable?
A:
The subject property was acquired after 26 October 2012 and disposed of after more than 12 months but within 36 months from the date of acquisition. The applicable SSD rate is 10%. The amount of SSD payable is $400,000, i.e. 10% of 4M.
Example 9 (Property acquired between 20 November 2010 and 26 October 2012 and holding period is more than 24 months but not more than 36 months)
9.
Q:
Same as Example 8 but the property was acquired by Mr. Wong on 15 October 2012 and disposed of it for $4M on 15 December 2014. How to calculate the holding period of the property? What is the rate of SSD? What is the amount of SSD payable?
A:
Since the subject property was acquired before 27 October 2012 and disposed of after more than 24 months from the date of acquisition, no SSD is payable.
10.
Q:
A:
11.
Q:
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