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(Source : news.gov.hk)

Stamp Duty (Amendment) (No.2) Bill 2010 to be gazetted this Friday

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A spokesman for the Transport and Housing Bureau said today (December 1) that the Government would publish the Stamp Duty (Amendment) (No.2) Bill 2010 in the Gazette this Friday (December 3), with the purpose of introducing the Special Stamp Duty (SSD) on residential property transactions and disallowing deferred payment of stamp duty for all residential property transactions valued at $20 million or below.

"The Bill aims to implement the stamp duty-related proposals approved by the Chief Executive-in-Council and then announced by the Financial Secretary on November 19, 2010 to curb speculation in residential properties. For residential properties of all values acquired on or after November 20, 2010 and resold within 24 months after acquisition, in addition to the current ad valorem stamp duty, an SSD will be levied at the point of resale," the spokesman said.

The SSD payable will be calculated based on the stated consideration for the transaction or the market value of the property as assessed by the Commissioner of Inland Revenue, whichever is the higher, at the following regressive rates for different holding periods -

(i) 15% if the property has been held for six months or less;
(ii) 10% if the property has been held for more than six months but for 12 months or less; and
(iii) 5% if the property has been held for more than 12 months but for 24 months or less

Moreover, the Bill will propose to disallow deferred payment of stamp duty for all residential property transactions valued at $20 million or below. This will mean that all residential property transactions, regardless of value, will have to pay stamp duty within 30 days after the signing of the Agreement for Sale and Purchase, since the Government has already disallowed deferred payment of stamp duty for residential property transactions valued at more than $20 million with effect from April 1, 2010.

The Stamp Duty (Amendment) (No.2) Bill will be introduced into the Legislative Council on December 8, 2010.

Ends/Wednesday, December 1, 2010
Issued at HKT 18:48

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