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Note:

On 4 November 2016, the Government announced that the Stamp Duty Ordinance would be amended to increase the AVD rates for residential property transactions to a flat rate of 15%. Subject to enactment of the relevant legislation by the Legislative Council, any instrument executed on or after 5 November 2016 for the sale and purchase or transfer of residential property, unless specifically exempted or provided otherwise, will be subject to the proposed new AVD rate (a flat rate at 15% of the consideration or value of the residential property, whichever is the higher).  Please refer to the FAQs and the illustrative examples for the Proposed new AVD rate for further details.

On 11 April 2017, the Government announced that it would introduce legislative amendments to tighten up the existing exemption arrangement for Hong Kong permanent resident (“HKPR”), to the effect that, unless specifically exempted or otherwise provided in the law, acquisition of more than 1 residential property under a single instrument executed on or after 12 April 2017 will be subject to the proposed new AVD flat rate at 15%, even if the purchaser/transferee is a HKPR who is acting on his/her own behalf and is not a beneficial owner of any other residential property in Hong Kong at the time of acquisition.  Please refer to the FAQs and the illustrative examples for AVD – Proposed new AVD rate: acquisition of more than 1 residential property under one single instrument for further details.  

Upon enactment of the legislation for the above proposals, the following FAQs may be revised.

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1.

Q:

Under what circumstances will AVD be payable at the higher rates (Scale 1)?

 
 

A:

Unless specifically exempted or otherwise provided, AVD is payable at Scale 1 on an agreement for sale for the acquisition of any residential property or non-residential property, if the agreement is executed on or after 23 February 2013.  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 23 February 2013).

However,  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; only the lower rates (Scale 2) will apply to such agreement/conveyance. See also Question 12 below.

(Note: The Government proposed that all instruments executed on or after 12 April 2017 for the sale and purchase or transfer of more than 1 residential property, unless specifically exempted or otherwise provided in the law, will be subject to the proposed new AVD rate at 15%.   Thus, a HKPR who acquires more than 1 residential property under an instrument will be liable to pay AVD at a flat rate of 15%, 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.)

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2.

Q:

Will Scale 1 apply if a HKPR purchases a non-residential property on or after 23 February 2013?

 
 

A:

Unless specifically exempted or otherwise provided (see Question 12 below),Scale 1 will apply to the acquisition of all non-residential properties.

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3.

Q:

What are the rates (including marginal relief) at Scale 1?

 
 

A:

New AVD rates

Consideration or value of the property 
(whichever is the higher)

Rates at Scale 1

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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4.

Q:

Who will be liable to pay AVD at Scale 1?

 
 

A:

In line with the existing regime, the buyer, the seller, and any person who uses the instrument will be jointly and severally liable to pay AVD at Scale 1. 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 at Scale 1 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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5.

Q:

Under what circumstance is the buyer the only liable person to pay the AVD?

 
 

A:

In general, all parties to the chargeable agreement for sale or conveyance on sale and the person who uses the instrument shall be jointly and severally liable, as the case may be, to the payment of AVD. However, if AVD had been charged at Scale 2 on an instrument based on the buyer’s declaration that he/she is a HKPR and is not a beneficial owner of any other residential property in Hong Kong at the date of acquisition of the subject property and it was subsequently found that the declaration of the buyer is not correct, only the buyer is liable for the specified amount, that is, the difference of the AVD computed at Scale 1 and Scale 2.

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6.

Q:

What does “own” in relation to a residential property mean?

 
 

A:

For the purposes of the AVD, a person “owns” a residential property if he is the beneficial owner of such property, or any share or interest thereof. Therefore, a person “owns” a residential property even if his residential property is held in the name of a trustee. A person “owns” a residential property if he jointly owns the property with another person/other persons, or is a co-owner thereof. A person is also a beneficial owner of a residential property if he has signed a chargeable agreement for sale for the purchase of that property.

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7.

Q:

How can a purchaser demonstrate that he does not own any other residential property?

 
 

A:

When presenting an agreement for sale/conveyance on sale in respect of a residential property transaction to the Stamp Office for stamping, for which a claim is made to pay AVD at scale 2 on the ground that he does not own any other residential property in Hong Kong, the purchaser will be required to furnish a statutory declaration (IRSD131).  The Stamp Office will verify the correctness of the information deposed to from its available information, including a check with the Land Registry records.

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8.

Q:

Will Scale 1 apply where the parties entered into a Provisional Agreement for Sale and Purchase (PASP) in respect of a property before 23 February 2013 and signed an Agreement for Sale and Purchase (ASP) on or after that date?

 
 

A:

For stamp duty purposes, a PASP is a chargeable agreement for sale. The parties who entered into a PASP for acquisition of a property before 23 February 2013 is regarded as having “acquired” the property before that date. Hence, Scale 1 will NOT apply to the acquisition of the property.

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9.

Q:

How to  determine whether a person is a HKPR or not?

 
 

A:

Same as that for Buyer’s Stamp Duty, for the purposes of AVD, HKPRs mainly include holders of valid Hong Kong Permanent Identity Cards (PICs) as defined under the Registration of Persons Ordinance (Cap. 177). HKPRs also include the aged, the blind or the infirm who are not required to apply for an identity card under regulation 25(e) of the Registration of Persons Regulations (Cap. 177A) and are entitled to be issued with a PIC if they make an application for a PIC.

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10.

Q:

Where a company whose shareholders and directors are all HKPRs acquires a property on or after 23 February 2013, will Scale 1 apply?

 
 

A:

If a limited company, regardless of the residency status of its shareholders and directors, acquires a residential property or non-residential property on or after 23 February 2013, Scale 1 will apply unless the transaction is specifically exempted.

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11.

Q:

Where a HKPR acquires a residential property as a trustee for another HKPR who does not own any other residential property in Hong Kong, should the ASP in question be subject to AVD at Scale 1 or Scale 2?

 
 

A:

Since Scale 2 only applies to the acquisition of a residential property by a HKPR who  does not own any other residential property in Hong Kong at the time of acquisition and  he acts on his own behalf in the transaction,  an agreement for sale signed by any person in the capacity of a trustee on behalf of another HKPR is chargeable with AVD at Scale 1.  The only exception is where that HKPR is a minor or a mentally incapacitated person.

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12.

Q:

Under what circumstances will AVD be not chargeable at Scale 1?

 
 

A:

Scale 1 will not be applicable under the following circumstances –

(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;
(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;
(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;
(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);
(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;
(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

  • purchased or acquired pursuant to redevelopment projects pursued by the Urban Renewal Authority; or
  • resumed under an order made under section 3 of the Lands Resumption Ordinance (Cap. 124) or purchased under section 4A of that Ordinance; or
  • sold pursuant to an order for sale made by the Lands Tribunal under section 4(1)(b)(i) of the Land (Compulsory Sale for Redevelopment) Ordinance (Cap.545); or
  • resumed under an order made under section 4(1) of the Mass Transit Railway (Land Resumption and Related Provisions) Ordinance (Cap. 276); or
  • resumed under an order made under section 13(1) of the Roads (Works, Use and Compensation) Ordinance (Cap. 370); or
  • resumed under an order made under section 16 or 28(1) of the Railways Ordinance (Cap. 519); or
  • acquired under an acquisition order made under section 3(1) or (2) of the Land Acquisition (Possessory Title) Ordinance (Cap. 130); or
  • resumed under an order made under section 37(2) of the Land Drainage Ordinance (Cap. 446); and

(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 26 below);

 

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13.

Q:

A HKPR purchased a residential property on 1 February 2013. He owned another residential property in Hong Kong at the time of acquisition. Is AVD chargeable at Scale 1?

 
 

A:

Scale 1 is not applicable as it will only affect acquisitions made on or after 23 February 2013. The stamp duty will be payable at Scale 2.

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14.

Q:

If a residential property is acquired jointly by a HKPR and his spouse who is not a HKPR and both of them do not own any other residential property in Hong Kong at the time of acquisition of the subject property, will Scale 1 apply?

 
 

A:

Provided that each of them is acting on his/her own behalf in acquiring the property, Scale 1 is not applicable.  The stamp duty will be payable at Scale 2.

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15.

Q:

A HKPR purchased a residential property jointly with his spouse. At the time of acquisition, the HKPR did not own any other residential property in Hong Kong and his spouse already owned a residential property in Hong Kong. Would Scale 1 apply to only half of the purchase price?

 
 

A:

If a residential property is jointly acquired by more than one person and any of the purchasers already owned a residential property in Hong Kong at the time of acquisition, AVD at Scale 1 will be payable on the entire stated consideration or full value of the property, whichever is the higher, regardless of the respective share of interest of the purchasers in the property acquired. The fact that the joint owner is a close relative does not make any difference in this respect.

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16.

Q:

On 23 February 2013, a HKPR entered into a PASP to purchase a residential property. At that time, he did not own any other residential property in Hong Kong. In the ASP executed on 23 March 2013, his spouse was added as one of the purchasers. At that time, his spouse already owned a residential property in Hong Kong. Will Scale 1 apply?

 
 

A:

In the above situation, the PASP will be chargeable to AVD at Scale 2 as usual (alternatively, such duty may be chargeable on the ASP instead under certain circumstances). Upon adding the spouse as one of the joint owners, the ASP will be charged with another AVD also at Scale 2, which is computed by reference to the stated consideration or the value of the property, whichever is the higher, less half of the stamp duty representing the share of the interest of the HKPR in the property.

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17.

Q:

Would the answer in Q16 be different if the spouse did not own any residential property in Hong Kong when he/she was added as one of the joint owners in the ASP?

 
 

A:

In the above situation, the ASP with adding of the spouse as one of the joint owners will be exempt from AVD.

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18.

Q:

Mr A already owned a residential property in Hong Kong. On 1 March 2013, he inherited another residential property in Hong Kong.  Will Scale 1 apply?

 
 

A:

Scale 1 is not applicable. A property (residential or non-residential) which is inherited from a deceased person’s estate under a will, the law of intestacy or the right of survivorship by a beneficiary is not chargeable with stamp duty.

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19.

Q:

Mr B inherited a residential Property X in Hong Kong from the estate of a deceased. He is now prepared to purchase another residential Property Y. Will Scale 1 apply?

 
 

A:

Scale 1 will apply to the agreement for sale/conveyance on sale in respect of Property Y since at the time of its acquisition, Mr B already owned another residential property in Hong Kong, i.e. Property X. How Mr B became owner of Property X is not relevant.

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20.

Q:

A HKPR entered into an agreement for sale to acquire a residential property (the first Property) in Hong Kong on 1 March 2013. Before the property was assigned to him, he signed another agreement for sale to acquire another residential property (the second Property). He does not own any other residential property. Will Scale 1 apply?

 
 

A:

Scale 2 applies to the Agreement for Sale in respect of the first Property since at the time of acquisition, the HKPR did not own any other residential property. However, Scale 1 applies to the agreement for sale in respect of the second Property since the HKPR is the beneficial owner of the first Property at the time of acquisition of his second property. A person becomes the beneficial owner of a residential property upon signing a chargeable agreement for sale for the acquisition of that property.

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21.

Q:

Mr C, a HKPR, signed a PASP to purchase a residential property on 1 February 2013. Ms D (Ms D is not a HKPR and not a close relative of Mr C) was added to the ASP as one of the purchasers which was signed on 23 February 2013. Will the ASP be subject to AVD at Scale 1?

 
 

A:

In the above scenario, Ms D has acquired part of the property from Mr C on or after 23 February 2013 when she signs the ASP. As Ms D is not a close relative of Mr C, Scale 1 will be applicable to the ASP in respect of the property transferred. Thus, the ASP will have to be stamped with AVD at Scale 1 which is computed by reference to the stated consideration or the value of the property, whichever is the higher, less half of the stamp duty representing the share of the interest of Mr C in the property, in addition to any other stamp duty (such as Buyer’s Stamp Duty) to which the ASP may be chargeable.

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22.

Q:

Mr E is a HKPR.  On 23 February 2013, he signed a PASP to purchase a residential property.   At that time he only owned a non-residential property in Hong Kong.   Will the PASP be charged with AVD at Scale 1?  

 
 

A:

Since Mr E did not own any other residential property in Hong Kong at the time of acquisition of the subject residential property and he is acting on his own behalf in acquiring the property, Scale 1 will not be applicable. Whether or not Mr E owns any non-residential property at the material time is not relevant.

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23.

Q:

Mr F is a HKPR.  On 23 February 2013, he signed a PASP to purchase a residential property in Hong Kong.  At that time he only owned a residential property in Macau and did not own any other property in Hong Kong.  Will the PASP be charged with AVD at Scale 1?

 
 

A:

For the purposes of AVD, residential property located outside Hong Kong will not be relevant. If Mr F does not own any other residential property in Hong Kong and he is acting on his own behalf in acquiring the subject property, Scale 1 will not be applicable.

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24.

Q:

Will any relief be given to change of residential property cases?

 
 

A:

A HKPR who is acquiring a residential Property B to replace his only other residential property A can apply for partial refund of AVD.  He will be subject to AVD at Scale 1 as usual in the first instance, but he may seek a refund of the stamp duty paid in excess of that computed under  Scale 2 upon proof that Property A has been disposed of within six months from the date Property B was assigned to him.  There is a general time limit for claiming refunds, which is within 2 years after the date of the chargeable instrument for acquisition of Property B (in this case, the agreement for purchase of Property B) or not later than 2 months after the date of the assignment for the disposal of Property A, whichever is the later.  To support the claim of refund, the applicant should submit IRSD125A with the relevant documents specified in the Annex of the form within the aforesaid application timeframe.  

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25.

Q:

Will  Scale 1 apply where a HKPR acquires a new residential property after disposing of all of his existing residential properties?

 
 

A:

For stamp duty purposes, a person who entered into an ASP for disposal of a property is regarded as having disposed of the property. Therefore, if a HKPR has disposed of all of his existing residential properties before acquiring a new one, Scale 2 will apply to the acquisition. However, if the HKPR fails to complete any of the disposal transactions (i.e. where the agreement for sale is cancelled, annulled or rescinded or is otherwise not performed), the difference of AVD payable at Scale 1 and Scale 2 on the newly acquired property will be recouped from him.

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26.

Q:

Will any relief be given to a person who is acquiring property for redevelopment?

 
 

A:

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.

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27.

Q:

When should AVD at Scale 1 be paid?

 
 

A:

A chargeable agreement for sale/conveyance on sale is to be stamped with AVD at Scale 1 within 30 days after the date on which the agreement for sale/conveyance on sale is executed.  The arrangements for stamping and claiming for applying Scale 2 regarding the instruments of immovable properties executed on or after the date of gazettal (i.e. 25 July 2014) (“Date of Gazettal”) of the Stamp Duty (Amendment) (No. 2) Ordinance 2014 (“the Amendment Ordinance”) are set out in the Stamping Circular No. 05/2014.

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28.

Q:

What are the transitional stamping arrangements for residential properties transactions?

 
 

A:

Before the Date of Gazettal, instruments relating to residential properties chargeable with AVD has to be stamped by reference to Scale 2 first. The additional AVD, representing the difference  of AVD payable at Scale  1 and Scale 2, will have to be paid within 30 days commencing immediately after the date of gazettal of the Amendment Ordinance (i.e. on or before 24 August 2014). As 24 August 2014 is a Sunday, the due date for payment will be extended to 25 August 2014. For any claim for charging AVD at Scale 2, the application should be made on or before 24 October 2014. Detailed arrangements for stamping the additional AVD and claiming for applying Scale 2 for instruments involving residential properties executed before the Date of Gazettal are set out in the Stamping Circular No. 06/2014.

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29.

Q:

What are the transitional stamping arrangements for non-residential properties transactions?

 
 

A:

Before the Date of Gazettal, stamp duty based on Scale 2 was payable on the conveyances on sale within 30 days after the date on which the conveyances are executed. The additional AVD, representing the difference of AVD payable at Scale 1 and Scale 2, has to be paid on or before 25 August 2014.
Provided that the conveyance on sale is duly stamped, the related preceding agreement for sale will be chargeable with stamp duty of $100 only. If there are other preceding chargeable agreements for sale that do not result in the execution of conveyances on sale (e.g. confirmor cases), stamp duty on all such chargeable agreements based on Scale 1 will also have to be paid on or before 25 August 2014.

For any claim for charging AVD at Scale 2, the application should be made on or before 24 October 2014. Detailed arrangements for stamping the additional AVD and application of applying Scale 2 for instruments of non-residential properties executed before the Date of Gazettal are set out in the Stamping Circular No. 07/2014.

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30.

Q:

Will the AVD paid be refunded if the parties cancel the agreement for sale after the AVD has been paid?

 
 

A:

In line with the existing regime, in case the agreement for sale is cancelled, revoked or rescinded or is otherwise not performed (other than for the purpose of a further resale such as confirmor sale or nomination of another buyer), the party who paid the AVD can apply for refund of the duty paid within 2 years after the agreement is cancelled, etc.

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31.

Q:

A HKPR, who does not own any other residential property in Hong Kong, executes several ASPs to buy several residential properties on the same day. Which ASP will be chargeable at Scale 2 and which ones will be chargeable at Scale 1?

 
 

A:

The ASP which was executed first at a point in time on that day will be charged at Scale 2, whereas all the other ASPs will be charged at Scale 1. The HKPR would have to declare, with respect to the ASP executed by him, for which AVD is claimed to be payable at Scale 2, that he did not own any other residential property at that particular point in time.

(Note: The Government proposed that all instruments executed on or after 12 April 2017 for the sale and purchase or transfer of more than 1 residential property, unless specifically exempted or otherwise provided in the law, will be subject to the proposed new AVD rate at 15%.   Thus, a HKPR who acquires more than 1 residential property under an instrument will be liable to pay AVD at a flat rate of 15%, 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.)

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32.

Q:

A HKPR, who does not own any other residential property in Hong Kong, executes one ASP to acquire several residential property units in one single transaction. Which property unit will be chargeable with AVD at Scale 2 and which ones will be chargeable with the AVD at Scale 1?

 
 

A:

Stamp duty is chargeable on a document basis. As there is only one chargeable agreement in the transaction, all the property units comprised in that instrument will be charged with AVD at Scale 2 rates.

[Note: Under the Government’s proposal announced on 11 April 2017, any instrument executed on or after 12 April 2017 for the purchase and sale or transfer of more than 1 residential property will, unless specifically exempted or otherwise provided in the law, be chargeable with AVD at the new flat rate of 15%, even if the purchaser or transferee is a HKPR who is acting on his own behalf and does not own any other residential property in Hong Kong at the time of acquisition of the properties concerned.  Upon enactment of the legislation for the proposal, if the ASP described in the question was executed on or after 12 April 2017, it will be chargeable with AVD at the new flat rate of 15%.]

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33.

Q:

If property prices have plummeted, will the buyers be able to base on the lowered market price to pay the AVD, or seek a refund of the AVD already paid?

 
 

A:

No.  Stamp duty is chargeable on an instrument by reference to the consideration stated in the instrument or the market value of the property as at the date of execution of the instrument.  The stamp duty payable will not be affected by any subsequent changes in the market value of the property, whether upwards or downwards.

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34.

Q:

A HKPR does not own any residential property and car parking space in Hong Kong. He enters into an ASP to acquire a car parking space and a residential property. How is AVD chargeable?

 
 

A:

If the HKPR is acting on his own behalf in acquiring the properties, AVD charged at Scale 2 will apply.                                                                                                                              

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35.

Q:

A HKPR does not own any residential property and car parking space in Hong Kong. He enters into two separate ASPs to acquire a car parking space and a residential property. How is AVD chargeable?

 
 

A:

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 Scale 1 is payable for the ASP for acquisition of the car parking space. 

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36.

Q:

A HKPR owned two residential properties when he acquired a new residential property. Within 6 months from the date of assignment of the new residential property, he disposed of both of the residential properties previously owned. Will he be entitled to the partial refund of AVD?

 
 

A:

No. The partial refund of AVD is catered for those who changed their only residential property by another residential property.

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37.

Q:

A HKPR and his wife each owned a residential property when they jointly acquired a new residential property. Within 6 months after the date of assignment of the new residential property, they disposed of their respective residential properties. Will they be entitled to the partial refund of AVD?

 
 

A:

Since the purchasers own more than one residential property at the time of acquisition of the new residential property, they are not entitled to partial refund of AVD.

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38.

Q:

A HKPR owned one residential property when he signed an ASP to acquire two new residential properties. Within 6 months after the date of assignment of the new residential properties, he disposed of his only original residential property. Will he be entitled to the partial refund of AVD?

 
 

A:

No.  The partial refund of AVD only applies if the HKPR acquires one residential property to replace his only original residential property.