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Stamp Duty for Sale or Transfer of Immovable Property in Hong Kong 2016-11-30
For immovable property in Hong Kong, stamp duty is calculated at rates which vary with the amount / value of the consideration or value of the property as follows:

A. Ad Valorem Stamp Duty (“AVD”)

1. Residential properties

1.1 Residential properties acquired bya HongKong permanent residenton his/her own behalf (i.e. the person isboth the legal and beneficial owner) and who does not own any other residential propertyin Hong Kong)

The AVD rates in the following table should be applied for the residential property transactions.

Amount or value of theconsideration


AVD rates
(with effect from 1 Apr. 2010)

Exceeds

Does not exceed


$2,000,000

$100

$2,000,000

$2,351,760

$100 + 10% of excess over $2,000,000

$2,351,760

$3,000,000

1.5%

$3,000,000

$3,290,320

$45,000 + 10% of excess over $3,000,000

$3,290,320

$4,000,000

2.25%

$4,000,000

$4,428,570

$90,000 + 10% of excess over $4,000,000

$4,428,570

$6,000,000

3%

$6,000,000

$6,720,000

$180,000 + 10% of excess over $6,000,000

$6,720,000

$20,000,000

3.75%

$20,000,000

$21,739,120

$750,000 + 10% of excess over $20,000,000

$21,739,120


4.25%


1.2 Residential properties acquired byother legal person


(i) Transaction entered into on or after 5 November 2016


A new flat rate of 15% is applied for the AVD chargeable on residential property transactions.


(ii) Transaction entered into during 23 February 2013 to 4 November 2016

The AVD rates in the following table should be applied for the residential property transactions.


Amount or value of the consideration

Rate

Exceeds

Does not exceed


$2,000,000

1.5%

$2,000,000

$2,176,470

$30,000 + 20% of excess over $2,000,000

$2,176,470

$3,000,000

3%

$3,000,000

$3,290,330

$90,000 + 20% of excess over $3,000,000

$3,290,330

$4,000,000

4.5%

$4,000,000

$4,428,580

$180,000 + 20% of excess over $4,000,000

$4,428,580

$6,000,000

6%

$6,000,000

$6,720,000

$360,000 + 20% of excess over $6,000,000

$6,720,000

$20,000,000

7.5%

$20,000,000

$21,739,130

$1,500,000 + 20% of excess over $20,000,000

$21,739,130


8.5%


(iii) Transaction entered into during 1 April 2010 to 22 February 2013

The AVD rates in the following table should be applied for the residential property transactions.


Amount or value of theconsideration


AVD rates
(with effect from 1 Apr. 2010)

Exceeds

Does not exceed


$2,000,000

$100

$2,000,000

$2,351,760

$100 + 10% of excess over $2,000,000

$2,351,760

$3,000,000

1.5%

$3,000,000

$3,290,320

$45,000 + 10% of excess over $3,000,000

$3,290,320

$4,000,000

2.25%

$4,000,000

$4,428,570

$90,000 + 10% of excess over $4,000,000

$4,428,570

$6,000,000

3%

$6,000,000

$6,720,000

$180,000 + 10% of excess over $6,000,000

$6,720,000

$20,000,000

3.75%

$20,000,000

$21,739,120

$750,000 + 10% of excess over $20,000,000

$21,739,120


4.25%


2. Non-residential properties


2.1 Non-residential properties acquired on or after 23 February 2013


The AVD rates in the following table should be applied for the residential property transactions.


Amount or value of the consideration

Rate

Exceeds

Does not exceed


$2,000,000

1.5%

$2,000,000

$2,176,470

$30,000 + 20% of excess over $2,000,000

$2,176,470

$3,000,000

3%

$3,000,000

$3,290,330

$90,000 + 20% of excess over $3,000,000

$3,290,330

$4,000,000

4.5%

$4,000,000

$4,428,580

$180,000 + 20% of excess over $4,000,000

$4,428,580

$6,000,000

6%

$6,000,000

$6,720,000

$360,000 + 20% of excess over $6,000,000

$6,720,000

$20,000,000

7.5%

$20,000,000

$21,739,130

$1,500,000 + 20% of excess over $20,000,000

$21,739,130


8.5%


2.2 Non-residential properties acquired during 1 April 2010 to 22 February 2013


The AVD rates in the following table should be applied for the residential property transactions.


Amount or value of theconsideration


AVD rates
(with effect from 1 Apr. 2010)

Exceeds

Does not exceed


$2,000,000

$100

$2,000,000

$2,351,760

$100 + 10% of excess over $2,000,000

$2,351,760

$3,000,000

1.5%

$3,000,000

$3,290,320

$45,000 + 10% of excess over $3,000,000

$3,290,320

$4,000,000

2.25%

$4,000,000

$4,428,570

$90,000 + 10% of excess over $4,000,000

$4,428,570

$6,000,000

3%

$6,000,000

$6,720,000

$180,000 + 10% of excess over $6,000,000

$6,720,000

$20,000,000

3.75%

$20,000,000

$21,739,120

$750,000 + 10% of excess over $20,000,000

$21,739,120


4.25%


B.Special stamp duty(“SSD”)


In order to discourage speculation in residential property, aSSDis imposed on the disposal of residential property (including land) which was acquired by an individual or a company (regardless of where it is incorporated) on or after 20 November 2010 and resold within 24 months from the date of acquisition.


SSD is a duty imposed on residential property transactions, not a charge on the gain on sale of the residential property. If the sale of residential property constitutes a trade, the seller will still be subject to profits tax on the profits earned, but the SSD is a tax deductible expense.


SSD is calculated based on the stated consideration or the market value, whichever is the higher,of the resold residential property at regressive rates, with higher rates for shorter holding periods. Effective from27 October 2012, the SSD rates were adjusted upwards and the holding period extended to 36months as follows:


Holding period

The property was acquiredon or after 20 November 2010and before 27 October 2012

The propertywas acquiredon or after 27October 2012

6 months or less

15%

20%

More than 6 months but for 12 months or less

10%

15%

More than 12 months but for 24 months or less

5%

10%

More than 24 months but for 36 months or less

-

10%


C.Buyer’s stamp duty(“BSD”)


Tofurtheraddress the overheated residential property market, BSD is imposed on the acquisition of residential property by a person(including a company) on or after 27 October 2012. BSD is imposed on top of the existing AVD andSSD, if applicable.BSD is charged at a flat rate of 15% on the stated consideration or themarket value of the property, whichever is the higher.


Exemption from BSD is granted when evidence is shown to the satisfaction of the Collectorof Stamp Revenuethat the person is a HongKong permanent resident acting on his/her own behalf in acquiring the residential property(i.e. the person is both thelegal and beneficial owner). In order to examine any claim for the BSD exemption, the InlandRevenueDepartmentrequires each applicant to declare, by virtue of the Oaths and Declarations Ordinance, that he/sheis a HongKong permanent resident and was ‘acting on his/her own behalf in the acquisition of the residential property.