PRESS RELEASE

(Source : Information Services Department)

Stamp Duty (Amendment) Bill 2017 gazetted

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     The Stamp Duty (Amendment) Bill 2017 (the Bill) was gazetted today (January 27).

     The Bill aims to implement the new demand-side management measure approved by the Chief Executive-in-Council and announced on November 4, 2016, i.e. to introduce a new flat rate of 15 per cent for the ad valorem stamp duty (AVD) chargeable on residential property transactions, in lieu of the existing AVD rates at Scale 1 (i.e. the "doubled ad valorem stamp duty" (DSD) rates). The new measure took effect from November 5, 2016.

     A Government spokesman stated that except for specified exemptions, the new rate of 15 per cent would apply to all transactions for residential property acquired by individuals or companies. The existing arrangement of applying DSD rates to non-residential property transactions is not affected.

     "Our current policy is to accord priority to the self-use home ownership needs of Hong Kong Permanent Residents (HKPRs). Thus, the new measure will continue to adopt the exemptions provided for under the existing DSD regime, such that a HKPR-buyer who does not own any other residential property in Hong Kong at the time of acquiring residential property will continue to pay AVD under the lower rates at Scale 2," the spokesman said.

     "To cater for the situation where a HKPR acquires a new residential property before disposing of his/her single residential property, we also propose to maintain the existing refund mechanism under the DSD regime for a HKPR-buyer who replaces his/her single residential property."

     The Bill will be introduced into the Legislative Council on February 8.

Ends/Friday, January 27, 2017
Issued at HKT 14:30

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