HK Stamp Duty

Under the Stamp Duty Ordinance, Ch. 117, there is a certain amount of tax on several types of documents. They are:-  

a. Conveyance on Sale (Assignment)
b. Residential Property Sale and Purchase Agreement
c. Immovable Lease (Lease)
d. Securities Assignment

Any person who wishes to use a document which is chargeable but without duly stamped for that instruments, that person shall be responsible for such stamp duty and is subject to penalty in respect of legal liability.

Stamp duty - Transfer of Hong Kong securities
with effect from 1 September 2001, the sale or purchase of any securities is subject to Hong Kong stamp duty and it will be charged by the amount or value is calculated as follows :-

Nature of Documents                                                                                        Charges
Contract Notes for sale or purchase of any Hong Kong stock                    For each invoice amount or value of the consideration of 0.1%

Voluntary disposition of transfer                                                                        $ 5 plus 0.2% of the value of transferable securities     

Any other kind of assignment                                                                             $ 5

If such sale or purchase in Hong Kong is completed within 2 days after the transaction, it must pay stamp duty; if such sale or purchase is completed elsewhere, it must pay stamp duty within 30 days after the transaction.

Stamp Duty - Hong Kong Tenancy
Lease, tenancy agreement and any other files with similar performance (including documents for duplicates and counterparts) (called the "Lease" here) are required to pay stamp duty. Landlords, tenants and any other persons who have executed the lease payment have to pay stamp duty.

Lease shall be stamped within 30 days after the date of signing.   Lease commencement date and time for stamping has no association.    A lease which is not stamped shall not be counted as evidence in civil proceedings, nor can it be used in any public officer or body corporate that shall be filed or acted with.

Lease : Stamp duty

Lease Duration                                                                                     Stamp Duty Rate
Not defined or is not fixed                                                                    yearly average term of 0.25% of annual rent

Lease period not exceeding 1 year                                                   0.25% of the total rent payable

Exceeding one year but not exceeding three years                        an average annual rent of 0.5% of annual rent

Exceeding 3 years                                                                                yearly or average annual rent of 1%

Moneys mentioned in the lease fee and the cost of construction fees                                              4.25% ( such as rent under the lease ) ;

                                                                                                                                                                       otherwise the same as the sale of immovable property as payment of stamp duty

Duplicates and counterparts                                                            HKD 5 for each


Overdue Stamp Duty - Fines

Overdue                                                                                                 Fine
Not more than one month                                                                 2 times the amount of stamp duty

More than one month , but not more than 2 months                   4 times the amount of stamp duty

Other cases                                                                                       10 times the amount of stamp duty