On 22 February 2013, the Financial Secretary announced that the Government would amend the Stamp Duty Ordinance to adjust the ad valorem stamp duty (AVD) rates and to advance the charging of AVD on non-residential property transactions from the conveyance on sale to the agreement for sale. Any residential property (except that acquired by a Hong Kong Permanent Resident who does not own any other residential property in Hong Kong at the time of acquisition) and non-residential property acquired on or after 23 February 2013, either by an individual or a company, will be subject to the new rates of AVD upon the enactment of the relevant legislation. Transactions which took place before 23 February 2013 will be subject to the original stamp duty regime.
On 26 October 2012, the Financial Secretary announced that the Government would amend the Stamp Duty Ordinance to introduce with effect from 27 October 2012 a Buyer's Stamp Duty (“BSD”) on residential properties. The relevant provisions are set out in the Stamp Duty (Amendment) Bill 2012 which was gazetted on 28 December 2012. Upon the enactment of the relevant legislation, any residential property acquired by any person (including a company incorporated) except a Hong Kong Permanent Resident will be subject to the BSD. BSD is to be charged at a flat rate of 15% on all residential properties, on top of the existing stamp duty and the special stamp duty, if applicable.
The Stamp Duty (Amendment) Ordinance 2011 imposes Special Stamp Duty (SSD) on top of the ad valorem stamp duty on the disposal of residential properties with effect from 20 November 2010. Unless the transaction is exempted from SSD or SSD is not applicable, any residential property acquired on or after 20 November 2010, either by an individual or a company (regardless of where it is incorporated), and resold within 24 months, will be subject to SSD. On 26 October 2012, the Financial Secretary announced that the Government would amend the Stamp Duty Ordinance to adjust the rates and to extend the holding period in respect of SSD. The relevant provisions are set out in the Stamp Duty (Amendment) Bill 2012 which was gazetted on 28 December 2012. Any residential property acquired on or after 27 October 2012, either by an individual or a company (regardless of where it is incorporated), and resold within 36 months, will be subject to the new rates of SSD upon the enactment of the relevant legislation. Transactions which took place within 20 November 2010 and 26 October 2012 will be subject to the original SSD regime.
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