Stamp duty on transactions of property valuing over $20 million
1.
Q:
When will the budget proposals on stamp duty be effective?
A:
They will come into effect as from 1 April 2010, and apply to the chargeable property documents executed on and after that date.
2.
Q:
Does the new stamp duty rate apply to residential property and non-residential property?
A:
The new rate applies to all kinds of immovable properties, namely residential and non-residential properties.
3.
Q:
How does the effective date of the proposal apply to the application for deferred payment?
A:
It refers to the execution date of the chargeable agreement. In other words, chargeable agreement of residential property valuing over $20,000,000 executed on and after 1 April 2010 is not eligible for the deferred payment application.
Residential property
The instrument chargeable with ad valorem stamp duty is the Agreement for Sale.
(1) | Only 1 agreement executed OLD rate and eligible to apply for deferred payment of stamp duty |
(2) | Only 1 agreement executed NEW rate and NOT eligible to apply for deferred payment of stamp duty |
(3) | Provisional agreement executed on 20-3-2010 NEW rate and NOT eligible to apply for deferred payment of stamp duty. |
(4) | Provisional agreement executed on 10-3-2010 OLD rate and eligible to apply for deferred payment of stamp duty. |
(5) | Property under Home Ownership Scheme or Tenants Purchase Scheme purchased from the Hong Kong Housing Authority or in secondary market with purchaser nominated by the Hong Kong Housing Authority Same as the treatment for non-residential property below. |
Non-residential property
The instrument chargeable with ad volorem stamp duty is the Assignment.
(6) | Agreement executed on 10-3-2010 NEW rate. As the assignment was executed after 1-4-2010, new rate is applicable. |
(7) | Agreement executed on 10-3-2010 OLD rate. As the assignment was executed before 1-4-2010, old rate is applicable. |