Stamp Duty

Stamp duty is a duty imposed on specified instruments or documents required by the Hong Kong government. It is important to only use duly stamped instruments or documents, otherwise any person who uses such an instrument is liable to the stamp duty and any penalty. All parties and all other persons executing the instrument  are liable to stamp duty.

 

Types of Stamp Duty

 

As detailed in the Stamp Duty Ordinance (Cap. 117), the Hong Kong Special Administrative Region (“HKSAR”) mainly imposes duty on the following certain types of documents:

  • Conveyance on sale also known as “Assignments”
  • Agreement for sale of immovable property
  • Lease of immovable property also known as “Tenancy Agreements”
  • Transfer of Hong Kong stock

Of the above mentioned, the most common duty occurs when buying a property in Hong Kong. There are various implications in terms of the nature of property (residential property vs. non-residential property), type of buyer (whether he is a Hong Kong permanent resident), the length of holding the property before selling it out (e.g. less than 12 months?).

In addition, a very common one is Hong Kong stock transfers which are subject to an analogous duty too. In this case, the agent or where no agent, the principal effecting the sale or purchase as well as the transferor and the transferee are liable to the analogous duty.

 

 Is Duty Relief Possible?

 

Despite all these liabilities, there is a group relief arrangement for the stamp duty in certain areas, where certain conditions have to be fulfilled for applying the relief. These areas include intra group relief, stock borrowing relief, and Islamic bond scheme relief.

We provide expert advice to our clients on how to better manage their tax and duty obligations to ensure the legality of the instruments or documents usage and avoid any additional penalties.

 

Contact us to learn more about our services

 

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About Us

HKWJ Tax Law & Partners Limited is an international boutique firm providing its clients tailor-made tax services, audit, accounting & company incorporation and advisory services in Hong Kong and around the globe. HKWJ Tax Law & Partners Limited is a proud member of the HKWJ Group.

Our Services

Our services include not only tax law advice on beneficial structures for corporations and private individuals, but also tax compliance services, such as Hong Kong tax returns, Hong Kong employers returns and Hong Kong transfer pricing documentation. When required, we assist our clients with their tax disputes, investigation or litigation that may arise during the course of their businesses or their private life. Within the HKWJ Group, various other services are provided such as business advisory, consultancy services, digital marketing, and human resources solutions.

In addition, we are much more than a tax firm as we offer accounting & audit services, incorporation of company & company secretarial services and process agent services. All our services are carried with the utmost confidentiality and respecting our strict privacy policy.

Our Vision

The tax system in Hong Kong is simple but not straight forward. Globalisation has resulted into Hong Kong accepting various international tax standards, making its tax laws more complicated. At HKWJ Tax Law & Partners Limited, we are guiding our clients through this challenging tax law climate, thereby contributing to the growth of their success. Only together, we all grow.

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Our accountants and tax law advisors have all a professional background in either accounting or tax laws and gained in-depth accounting & tax knowledge from large accounting & law firms. As your trusted accounting and tax advisor, we can make your taxes issues less stressful and worrisome, and hopefully, make them even go away. In addition, our in-house consultants can assist with business advisory services, risk management, compliance, digital marketing, and human resources solutions.

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