Hong Kong: Draft legislation implementing enhanced stamp duty relief for intra-group asset transfers
The Stamp Duty (Amendment) (No. 3) Bill 2026 was published on October 2, 2026.
Draft legislation implementing enhanced stamp duty relief under section 45 of the Stamp Duty Ordinance for intra-group asset transfers executed on or after February 25, 2026, was published in the gazette on October 2, 2026.
The Stamp Duty (Amendment) (No. 3) Bill 2026 would implement the section 45 relief announced by the government in the 2026/2027 Budget, following the Court of Final Appeal judgment in John Wiley & Sons UK2 LLP and Another v. The Collector of Stamp Revenue. In particular, the bill would:
- Expand the scope of business entities eligible for section 45 relief to include bodies corporate that do not issue or allot share capital (e.g., limited liability partnerships) but have separate legal personality
- Lower the minimum threshold for association between the transferor and the transferee from 90% to 75%
In addition, under the enhanced relief regime, two bodies corporate would be regarded as associated if one body corporate has an associating interest in the other body corporate or a third body corporate has an associating interest in both of them.
The Inland Revenue Department (IRD) has also introduced a transitional arrangement under which taxpayers may submit adjudication requests for instruments to pre-qualify for the enhanced stamp duty relief.
Read an October 2026 report prepared by the KPMG member firm in Hong Kong