On 22 February 2013, the Financial Secretary announced that the Government would amend the Stamp Duty Ordinance to adjust the ad valorem stamp duty (AVD) rates. The new AVD rates are as follows.
The new stamp duty rates will not apply to Hong Kong permanent resident buyers who are not beneficial owners of any other residential property in Hong Kong at the time of acquisition of a residential property.
(Where the stamp duty calculated includes a fraction of $1, round-up the duty to the nearest $1.)
| Amount or value of the consideration | Rate | |
|---|---|---|
| Exceeds | Does not exceeds | |
| $2,000,000 | 1.5% | |
| $2,000,000 | $2,176,470 | $30,000+20% of the exceeds over $2,000,000 |
| $2,176,470 | $3,000,000 | 3.0% |
| $3,000,000 | $3,290,330 | $90,000+20% of the exceeds over $3,000,000 |
| $3,290,330 | $4,000,000 | 4.5% |
| $4,000,000 | $4,428,580 | $180,000+20% of the exceeds over $4,000,000 |
| $4,428,580 | $6,000,000 | 6.0% |
| $6,000,000 | $6,720,000 | $360,000+20% of the exceeds over $6,000,000 |
| $6,720,000 | $20,000,000 | 7.5% |
| $20,000,000 | $21,739,130 | $1,500,000+20% of the exceeds over $20,000,000 |
| $21,739,130 | - | 8.5% |
* The new AVD rates are subject to passage of the relevant legislation.
Effective from 1 April 2010, stamp duty on sale of immovable property in Hong Kong is charged at rates which vary with the amount or value of the consideration as follows: (If stamp duty calculated includes a fraction of $1, round-up the duty to the nearest $1)
| Amount or value of the consideration | Rate | |
|---|---|---|
| Exceeds | Does not exceeds | |
| $2,000,000 | $100 | |
| $2,000,000 | $2,351,760 | $100+10% of the exceeds over $2,000,000 |
| $2,351,760 | $3,000,000 | 1.5% |
| $3,000,000 | $3,290,320 | $45,000+10% of the exceeds over $3,000,000 |
| $3,290,320 | $4,000,000 | 2.25% |
| $4,000,000 | $4,428,570 | $90,000+10% of the exceeds over $4,000,000 |
| $4,428,570 | $6,000,000 | 3% |
| $6,000,000 | $6,720,000 | $180,000+10% of the exceeds over $6,000,000 |
| $6,720,000 | $20,000,000 | 3.75% |
| $20,000,000 | $21,739,120 | $750,000+10% of the exceeds over $20,000,000 |
| $21,739,120 | - | 4.25% |
Stamp duty is calculated at rates which vary with the term of the lease as follows:
| Term | Rate | |
|---|---|---|
| Not defined or is uncertain | 0.25% of the yearly or average yearly rent (Note 1) | |
| Exceeds | Does not exceeds | |
| - | 1 year | 0.25% of the total rent payable over the term of the lease (Note 1) |
| 1 year | 3 year | 0.5% x of the yearly or average yearly rent (Note 1) |
| 3 year | - | 1% x of the yearly or average yearly rent (Note 1) |
| Key money, construction fee etc. mentioned in the lease | 3.75% of the consideration if rent is also payable under the lease. Otherwise, same duty as for a sale of immovable property | |
| Duplicate or counterpart | HK$5 each | |
Please note that any deposit which may be mentioned in the lease will not be taken into account in assessing the stamp duty.
Please click on the following link for further details:http://www.gov.hk/en/residents/taxes/stamp/stamp_duty_rates.htm
Note 1: The yearly rent/average yearly rent/total rent has to be rounded-up to the nearest $100.
