Hong Kong charges stamp duty on certain documents, principally transfers of Hong Kong shares and of Hong Kong immovable property, and leases. Stamp duty is administered by the Stamp Office of the Inland Revenue Department. Documents must be stamped within strict time limits; late stamping attracts penalties.
Transfers of Hong Kong shares are charged at 0.1% of the consideration or value on each of the buyer and seller, plus HK$5 on the instrument of transfer. Property transactions are charged ad valorem duty at Scale 2 rates; the special stamp duty measures for residential property were cancelled from 28 February 2024.
At a glance (government charges)
- Shares
- 0.1% per side, plus HK$5
- Property
- Ad valorem duty at Scale 2 rates
- Leases
- Based on rent and term
- Administered by
- Stamp Office, Inland Revenue Department
Shares
| Document | Duty |
|---|---|
| Bought note | 0.1% of the higher of consideration and value |
| Sold note | 0.1% of the higher of consideration and value |
| Instrument of transfer | HK$5 |
For shares in a company holding property, the value takes account of the underlying property. Intra-group relief may be available on application for qualifying transfers between associated companies.
Property: ad valorem duty (Scale 2)
| Consideration or value (HK$) | Duty |
|---|---|
| Up to 4,000,000 | HK$100 |
| 4,000,001 to 4,323,780 | HK$100 + 20% of excess over HK$4,000,000 |
| 4,323,781 to 4,500,000 | 1.5% |
| 4,500,001 to 4,935,480 | HK$67,500 + 10% of excess over HK$4,500,000 |
| 4,935,481 to 6,000,000 | 2.25% |
| 6,000,001 to 6,642,860 | HK$135,000 + 10% of excess over HK$6,000,000 |
| 6,642,861 to 9,000,000 | 3% |
| Above 9,000,000 | Rising bands up to 4.25% |
Leases and practical points
- Leases are stamped based on the annual rent and the term; both landlord and tenant are liable.
- Agreements for sale and assignments of property are usually stamped through solicitors.
- Late stamping penalties increase with the length of delay.
- An unstamped document may not be admissible as evidence in court.
Self-check: where do you stand?
| Question | If the answer is no |
|---|---|
| Have all past share transfers been stamped? | Arrange late stamping |
| Is your office lease stamped? | Check with the landlord and stamp it |
| Do you know the stamp duty cost before a property deal? | Calculate it with your solicitor |
| Have you checked whether intra-group relief could apply to a restructuring? | Take advice before transferring |
- Share transfer documents and stamping.
- Coordinating with solicitors on property and lease stamping.
- Intra-group relief applications with tax advisers.
In summary
- Shares: 0.1% each side plus HK$5.
- Property: Scale 2 rates; check current bands.
- Stamp on time.
Official references
- Stamp Duty Ordinance (Cap. 117)
- Inland Revenue Department: Stamp Office FAQs and rate tables, www.ird.gov.hk