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Hong Kong Tax Newsflash
Abolition of all demand-side stamp duty measures for residential properties
Published date: 16 April 2024
The Bill1 which abolishes all the demand-side management measures for residential properties (DSMMs), including Buyer's Stamp Duty (BSD)2, New Residential Stamp Duty (NRSD)3 and Special Stamp Duty (SSD)4, as announced in the 2024-25 Budget Speech was passed by the Legislative Council on 10 April 2024. The abolition applies with effect from 28 February 2024 and ends the DSMMs which had lasted for over 13 years.
With the enactment of the Bill, any instrument executed on or after 28 February 2024 for the sale and purchase or transfer of residential properties would only be subject to Ad Valorem Stamp Duty (AVD) rate equivalent to Scale 2 (extracted below), no matter the buyer is a Hong Kong permanent resident (HKPR) or non-HKPR, with or without another residential property on hand.
Amount or value of consideration |
Rates at Scale 2 |
|---|---|
Up to HKD3,000,000 |
HKD100 |
HKD3,000,001 to HKD3,528,240 |
HKD100 + 10% of the excess over HKD3,000,000 |
HKD3,528,241 to HKD4,500,000 |
1.5% |
HKD4,500,001 to HKD4,935,480 |
HKD67,500 + 10% of the excess over HKD4,500,000 |
HKD4,935,481 to HKD6,000,000 |
2.25% |
HKD6,000,001 to HKD6,642,860 |
HKD135,000 + 10% of the excess over HKD6,000,000 |
HKD6,642,861 to HKD9,000,000 |
3% |
HKD9,000,001 to HKD10,080,000 |
HKD270,000 + 10% of the excess over HDD9,000,000 |
HKD10,080,001 to HKD20,000,000 |
3.75% |
HKD20,000,001 to HKD21,739,120 |
HKD750,000 + 10% of the excess over HKD20,000,000 |
HKD21,739,121 and above |
4.25% |
1 Stamp Duty (Amendment) Bill 2024
2 BSD (@7.5%) applied to all residential property transactions except for those acquired by a Hong Kong permanent resident (HKPR) acting on his or her own behalf.
3NRSD (@7.5%) applied to all residential property transactions except for those acquired by a HKPR acting on his or her own behalf and not owning any other residential property in Hong Kong at the time of acquisition.
4 SSD (@10% /15%/20%) applied to those who dispose of his/her residential property within 2 years after acquisition.
Tax Newsflash is published for the clients and professionals of Deloitte Touche Tohmatsu. The contents are of a general nature only. Readers are advised to consult their tax advisors before acting on any information contained in this newsletter.
If you have any questions, please contact our professionals:
Authors
Doris Chik
Tax Partner
+852 2852 6608
dchik@deloitte.com.hk
Carmen Cheung
Senior Tax Manager
+852 2740 8660
carmcheung@deloitte.com.hk
Kiwi Fung
Tax Manager
+852 2258 6162
kifung@deloitte.com.hk
Global Business Tax Services
National Leader
Andrew Zhu
Tax Partner
+86 10 8520 7508
andzhu@deloitte.com.cn
Hong Kong
Raymond Tang
Tax Partner
+852 2852 6661
raytang@deloitte.com.hk
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