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Part 1 of Scale 1:
AVD is computed at the applicable rate on the consideration or value of the property (whichever is the higher). |
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Part 2 of Scale 1 (Applicable to instruments of residential property executed on or after 23 February 2013 but before 5 November 2016; and instruments of non-residential property executed on or after 23 February 2013 but before 26 November 2020) | |
Consideration or value of the property (whichever is the higher) |
Rates at Scale 1 (Part 2) |
Up to $2,000,000 |
1.50% |
$2,000,001 to $2,176,470 |
$30,000+20% of the excess over $2,000,000 |
$2,176,471 to $3,000,000 |
3.00% |
$3,000,001 to $3,290,330 |
$90,000+20% of the excess over $3,000,000 |
$3,290,331 to $4,000,000 |
4.50% |
$4,000,001 to $4,428,580 |
$180,000+20% of the excess over $4,000,000 |
$4,428,581 to $6,000,000 |
6.00% |
$6,000,001 to $6,720,000 |
$360,000+20% of the excess over $6,000,000 |
$6,720,001 to $20,000,000 |
7.50% |
$20,000,001 to $21,739,130 |
$1,500,000+20% of the excess over $20,000,000 |
$21,739,131 and above |
8.50% |
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Scale 2 rates applicable to instruments executed before 11 am on 22 February 2023:
Consideration or value of the property (whichever is the higher) |
Rates at Scale 2 |
Up to $2,000,000 | $100 |
$2,000,001 to $2,351,760 | $100+10% of the excess over $2,000,000 |
$2,351,761 to $3,000,000 | 1.50% |
$3,000,001 to $3,290,320 | $45,000+10% of the excess over $3,000,000 |
$3,290,321 to $4,000,000 | 2.25% |
$4,000,001 to $4,428,570 | $90,000+10% of the excess over $4,000,000 |
$4,428,571 to $6,000,000 | 3.00% |
$6,000,001 to $6,720,000 | $180,000+10% of the excess over $6,000,000 |
$6,720,001 to $20,000,000 | 3.75% |
$20,000,001 to $21,739,120 | $750,000+10% of the excess over $20,000,000 |
$21,739,121 and above | 4.25% |
Scale 2 rates applicable to instruments executed at 11 am on 22 February 2023 or thereafter:
Consideration or value of the property (whichever is the higher) |
Rates at Scale 2 |
Up to $3,000,000 | $100 |
$3,000,001 to $3,528,240 | $100+10% of the excess over $3,000,000 |
$3,528,241 to $4,500,000 | 1.50% |
$4,500,001 to $4,935,480 | $67,500+10% of the excess over $4,500,000 |
$4,935,481 to $6,000,000 | 2.25% |
$6,000,001 to $6,642,860 | $135,000+10% of the excess over $6,000,000 |
$6,642,861 to $9,000,000 | 3.00% |
$9,000,001 to $10,080,000 | $270,000+10% of the excess over $9,000,000 |
$10,080,001 to $20,000,000 | 3.75% |
$20,000,001 to $21,739,120 | $750,000+10% of the excess over $20,000,000 |
$21,739,121 and above | 4.25% |
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Unless specifically exempted or otherwise provided, AVD is payable at the rate under Part 1 of Scale 1 on an agreement for sale for the acquisition of any residential property executed on or after 5 November 2016. Part 1 of Scale 1 also applies to a conveyance on sale of such a property executed on or after that date (unless the related agreement for sale was executed before 5 November 2016).
However, Part 1 of Scale 1 does not apply to an agreement/conveyance for a residential property where the purchaser/transferee is a Hong Kong permanent resident (HKPR) (or he is a tenant or an authorized occupant of the Housing Authority who acquires the residential property under the Tenants Purchase Scheme) acting on his own behalf and he does not own any other residential property in Hong Kong at the time of acquisition of the subject property irrespective of whether the purchaser/transferee is acquiring a residential property for the first time; only the lower rates (Scale 2) will apply to such agreement/conveyance. See also Question 19 below.
However, instruments executed on or after 12 April 2017 for the sale and purchase or transfer of more than a single residential property, unless specifically exempted or otherwise provided in the law, will be subject to AVD at Part 1 of Scale 1. Thus, a HKPR who acquires more than a single residential property under an instrument will be liable to pay AVD at Part 1 of Scale 1, irrespective of whether or not he/she is a beneficial owner of any other residential property in Hong Kong on the date of acquisition of the subject properties.
For the meaning of "single residential property", see Questions 12 to 16.
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The buyer, the seller, and any person who uses the instrument will be jointly and severally liable to pay AVD, be it calculated at Scale 1 or Scale 2 rates. In other words, the buyer, the seller and any person who uses the instrument will have the same extent of liability, under the law, to pay for any AVD payable on the chargeable instruments, irrespective of any agreement to the contrary made between them.
However, any person who merely uses an instrument of immovable property (other than the parties executing the instrument) to deduce the title of the property will not be regarded as the liable person.
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A person who only holds a Notice of Application Result for Verification of Eligibility for PIC issued by the Immigration Department cannot be regarded as a HKPR for the purposes of AVD.
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The Stamp Duty Ordinance has not exhaustively defined the term "single residential property. However, it provides that a "single residential property" includes:
- a unit and a roof situated in the same building;
- a unit and an adjacent flat roof situated in the same building;
- a unit and an adjacent garden;
- two residential units that became a single unit as shown by the following documents that the walls or the floor, or any part of the walls or the floor separating the two units has been demolished and the two units have become one single residential unit -
- a building plan and a letter issued by the Building Authority acknowledging receipt of a certificate of completion of the building works relating to the demolition as required under the Building (Administration) Regulations; or
- a plan signed by an authorized person after the completion of the building works relating to the demolition.
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16.
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(I) AVD rates on the sale and purchase or transfer of non-residential property will be reverted from the rates under Part 2 of Scale 1 to the rates under Scale 2 with effect from 26 November 2020.
(II) Part 1 or Part 2 of Scale 1 will not be applicable under the following circumstances with effect from 23 February 2013 –
(A) When Scale 2 is applicable:
(i) | acquisition of a residential property (whether or not together with a car parking space) by a HKPR who is acting on his/her own behalf and does not own any other residential property (and car parking space, if applicable) in Hong Kong at the time of acquisition. However, if the instrument is executed on or after 12 April 2017 for acquisition of more than 1 residential property, it will be subject to AVD at Part 1 of Scale 1; |
(ii) | acquisition of a residential property (whether or not together with a car parking space) by two or more HKPRs jointly as co-owners or joint owners and each of the purchasers is acting on his/her own behalf and does not own any other residential property (and car parking space, if applicable) in Hong Kong at the time of acquisition. However, if the instrument is executed on or after 12 April 2017 for acquisition of more than 1 residential property, it will be subject to AVD at Part 1 of Scale 1; |
(iii) | acquisition of a residential property by a HKPR jointly as a co-owner or joint owner with a close relative or close relatives (i.e. spouse, parents, children, brothers and sisters) who is/are not HKPR and each of the purchasers is acting on his/her own behalf and does not own any other residential property in Hong Kong at the time of acquisition. However, if the instrument is executed on or after 12 April 2017 for acquisition of more than 1 residential property, it will be subject to AVD at Part 1 of Scale 1; |
(iv) | acquisition or transfer of residential properties between close relatives, irrespective of whether they are HKPRs and whether they are beneficial owners of any other residential property in Hong Kong at the time of the acquisition or transfer; |
(v) | nomination of a close relative(s) (be they HKPRs or not) who is/are owner(s) of other residential property in Hong Kong at the time of nomination, to take up the assignment of a residential property; |
(vi) | acquisition or transfer of a property by a court order or pursuant to a court order, which includes a foreclosure order obtained by a mortgagee whether or not it falls under the definition of a financial institution within the meaning of section 2 of the Inland Revenue Ordinance (Cap. 112). With effect from 26 November 2020, such exception is only relevant to a transaction of residential property as that of non-residential property is in any event subject to AVD at Scale 2 rates; |
(vii) | transfer/vesting of a mortgaged property under a conveyance to/in its mortgagee that is a financial institution within the meaning of section 2 of the Inland Revenue Ordinance (Cap.112), or a receiver appointed by the mortgagee. With effect from 26 November 2020, such exception is only relevant to a transaction of residential property as that of non-residential property is in any event subject to AVD at Scale 2 rates; |
(viii) |
acquisition of a property by a person acting on his/her own behalf to replace another property which was owned by that person and that has been
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(B) When AVD is exempt:
(ix) | nomination of a close relative(s) (be they HKPRs or not) who do(es) not own any other residential property in Hong Kong at the time of nomination; |
(x) | transfer of a property to a beneficiary of the estate of a deceased person in accordance with that provided under a will or the law of intestacy; or acquired the property by the right of survivorship; |
(xi) | acquisition or transfer of a property by or to a body corporate from an associated body corporate; |
(xii) | acquisition or transfer of properties by or to the Government; |
(xiii) | gift of properties received by charitable institutions exempted from tax under section 88 of the Inland Revenue Ordinance (Cap. 112). |
(C) Entitled to partial refund of AVD
(xiv) | acquisition of a residential or non-residential property (including bare sites) for the purpose of redevelopment (see Question 33 below). With effect from 26 November 2020, such exception is only relevant to a transaction of residential property as that of non-residential property is in any event subject to AVD at Scale 2 rates; |
(xv) | HKPR who changes his/her only residential property. |
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23.
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27.
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The same relief as for acquisitions of residential properties for redevelopment under the Buyer’s Stamp Duty regime will apply equally to acquisitions of residential and non-residential properties for development under the AVD regime. The AVD paid in excess of that payable under Scale 2 would be refunded. The applicant may submit IRSD125B (for individual person) or IRSD125C (for body corporate) with the relevant supporting evidence specified in the Annex of the forms to claim for the refund. With effect from 26 November 2020, such exception is only relevant to a transaction of residential property as that of non-residential property is in any event subject to AVD at Scale 2 rates.
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Between 23 Feburary 2013 and 25 Novemeber 2020, AVD charged at Scale 2 is payable on the ASP for acquisition of the residential property if the HKPR is acting on his own behalf in acquiring the property. AVD at Part 2 of Scale 1 is payable for the ASP for acquisition of the car parking space. With effect from 26 November 2020, AVD charged at Scale 2 is payable on the ASP for acquisition of the car parking space.
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44.
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45.
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