Hong Kong: Reduced stamp duty rate on stock transfers effective 17 November 2023
The stamp duty rate on transfers of Hong Kong stock would be reduced from 0.13% to 0.1% for both the buyer and the seller.
Reduced stamp duty rate on stock transfers effective 17 November 2023
The Chief Executive announced in the 2023 Policy Address that the stamp duty rate on transfers of Hong Kong stock would be reduced from 0.13% to 0.1% for both the buyer and the seller. Read TaxNewsFlash
The Stamp Duty (Amendment) (Stock Transfers) Bill 2023 implementing the reduced stamp duty rate was passed by the Legislative Council on 15 November 2023 and the corresponding Amendment Ordinance will come into operation on 17 November 2023.
Accordingly, for Hong Kong stock transfers executed on or after 17 November 2023, the stamp duty payable by both the buyer and seller will be 0.1% (i.e., the rate prior to 1 August 2021) of the consideration or the market value (whichever is the higher) of the stock transferred.
Stamp duty on transfers of residential property in Hong Kong
The 2023 Policy Address also proposed the following stamp duty measures in relation to transfers of residential property Hong Kong:
- Reducing the rate of each of the buyer’s stamp duty and the new residential stamp duty from 15% to 7.5%
- Shortening the applicable period of the special stamp duty from 36 months to 24 months
- Introducing a stamp duty suspension arrangement for acquisition of residential property in Hong Kong by certain incoming overseas talents who are non-Hong Kong permanent residents at the time of the property acquisition
For more information, contact a KPMG tax professional:
David Ling | davidxling@kpmg.com
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