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(Source : Information Services Department)

Stamp Duty (Amendment) (No.2) Bill 2017 gazetted

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     The Stamp Duty (Amendment) (No.2) Bill 2017 (the Bill) was gazetted today (May 26).

     The Bill aims to implement the tightening of the exemption arrangement for Hong Kong permanent residents (HKPRs) under the New Residential Stamp Duty (NRSD) regime as announced by the Government on April 11, 2017. The tightened exemption arrangement took effect from April 12, 2017.

     Under the tightened exemption arrangement, acquisition of a single residential property (with or without one car parking space) under a single instrument by 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 will continue to be subject to the lower ad valorem stamp duty rates at Scale 2. However, if the HKPR concerned acquires more than one residential property under a single instrument, the transaction will no longer be exempted and will be subject to the NRSD rate of 15 per cent.

     In determining what constitutes a single residential property, the Inland Revenue Department (IRD) may take into account various documents, including the approved building plan, deed of mutual covenant, occupation permit and any other document that IRD considers relevant.

     The Bill also sets out some examples which will be regarded as a single residential property. These include a unit and a roof situated immediately above the unit; a unit and an adjacent garden; and a unit that became a single unit following the demolition of the walls, or any part of the walls, separating two adjoining units as shown by the documents set out in the Bill (e.g. approved building plans).

     The Bill will be introduced into the Legislative Council on June 7.

 

Ends/Friday, May 26, 2017
Issued at HKT 14:30

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