Stamp Duty Rate

Stamp Duty Rates Table

Ad valorem stamp duty (AVD)

Foreword –
AVD at Scale 1 and Scale 2
The Stamp Duty (Amendment) (No. 2) Ordinance 2014 (Amendment Ordinance) was gazetted on 25 July 2014. The 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 (the Effective Date) 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 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 the Effective Date. Please see the FAQs for AVD - Scale 1 and Scale 2.

Proposed new AVD rate

The FAQs are prepared based on the Government’s current proposal, which has to be put into effect through the enactment of legislation and is subject to amendment during the legislative process

On 4 November 2016, the Government announced that the Stamp Duty Ordinance would be amended to increase the AVD rates for residential property transactions to a flat rate of 15%. Under the Government’s proposal, any instrument 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 the proposed new AVD rate (a flat rate at 15% of the consideration or value of the residential property, whichever is the higher). The exemptions and exceptions introduced through the 2014 Amendment Ordinance will not be affected. Thus, a HKPR acquiring a residential property where he/she is acting on his/her own behalf and does not own any other residential property in Hong Kong at the time of acquisition will continue to be subject to AVD at Scale 2 rates. The refund mechanism under the existing regime for HKPR buyer who changes his/her single residential property will also be retained. The amendment will not affect transactions relating to non-residential properties either. Please see the FAQs for AVD - proposed new AVD rate.

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