Stamp Duty in Hong Kong
In Hong Kong, the payment of stamp duty is governed by the Stamp Duty Ordinance.
This ordinance imposes stamp duty on four different types of documents.
a) The documents which are subject to stamp duty are those which are related to
b) the agreement for the sale of an immovable property,
c) the transfer of stocks which have been purchased or sold in Hong Kong,
d) the conveyance on the sale of property, and
e) the transfer of Hong Kong stocks.
Liability of Stamp Duty
Except for the transfer of stocks, those all parties directly involved with the document as well as anyone else who executes any of the functions specified in the document are liable for stamp duty.
However, with regard to the transfer of Hong Kong stocks, if the transfer pertains to a contract note for the purchase or sale of the stock, it is the agent who is liable.
However, if no agent played a role in either the purchase or sale of the stock, the entity which was primarily involved in the sale or purchase of the stock is liable for stamp duty. In the cases of all other transfers, the transferor and transferee are to be held liable for the stamp duty.
Should you happen to have any difficulty in managing your stamp duty payments or any other issue related to taxation in Hong Kong, we at Paul Hype Page & Co are always willing to serve your needs. Our tax team will ensure that you do not fall afoul of any of Hong Kong’s tax laws by ensuring that your stamp duty or any other tax requirements are properly fulfilled. In this way, all our clients may remain completely tax compliant.