Stamp Duty Return (IRSD) Hong Kong

A Stamp Duty Return (IRSD) in Hong Kong records the information the relevant body requires to process the matter.

The Stamp Duty Ordinance (Cap. 117) sets out the categories of instruments subject to stamp duty in Hong Kong, the applicable rates, and the stamping procedures. The First Schedule to Cap. 117 lists the various heads of stamp duty and their rates. For Hong Kong property transactions, the principal heads of stamp duty currently include: ad valorem stamp duty (AVD) on agreements for sale and purchase and conveyances on sale of immovable property; Buyer's Stamp Duty (BSD) under section 29CA on residential property acquired by non-permanent residents and companies; and any applicable remaining demand management measures. For share transfers, stamp duty at 0.13% per side (0.26% total) is imposed on instruments for the transfer of Hong Kong stock.

The stamping of dutiable instruments is essential for their legal effectiveness in Hong Kong. An instrument that requires stamping under Cap. 117 but has not been duly stamped is inadmissible as evidence in any civil court or tribunal proceedings in Hong Kong, and cannot be registered at the Land Registry (for property instruments) or used to effect a transfer in the company's register of members (for share transfers). These practical consequences of non-stamping mean that parties to property transactions and share transfers must attend to stamp duty compliance promptly.

The deadline for stamping is 30 days from the date of execution of the instrument in Hong Kong, or 30 days from the date the instrument is brought into Hong Kong if it was executed outside Hong Kong. The IRD charges penalties for late stamping: a penalty of up to 10 times the unpaid duty can be imposed for instruments not duly stamped within the prescribed period. The e-Stamping portal operated by the IRD allows electronic submission and payment of stamp duty for most categories of instruments, making timely compliance more accessible for solicitors and individuals handling property and share transactions.

Stamp duty rates for residential property in Hong Kong were subject to significant changes in 2024, with the abolition of the New Residential Stamp Duty (NRSD) and Special Stamp Duty (SSD) as part of the Government's relaxation of residential property market cooling measures announced in the February 2024 Budget. Section 9 of Cap. 117 governs the stamping deadline and penalties — instruments not duly stamped within 30 days of execution attract a penalty of up to 10 times the unpaid duty. Section 29CA of Cap. 117 imposes Buyer's Stamp Duty on qualifying transactions. Buyers and their solicitors must verify the current stamp duty position at the time of their transaction, as the legislative framework continues to evolve. forms-legal.com provides this Stamp Duty Return guide alongside related Hong Kong property transaction templates.

A Hong Kong Stamp Duty Return must be filed with the Inland Revenue Department whenever a party executes a dutiable instrument under the Stamp Duty Ordinance (Cap. 117) in connection with a Hong Kong immovable property transaction or a transfer of Hong Kong stock.

A purchaser of residential or commercial property in Hong Kong who has signed an Agreement for Sale and Purchase (ASP) must have the ASP stamped within 30 days of execution. The ASP is a dutiable instrument under Cap. 117, and the AVD is assessed on the higher of the consideration stated in the ASP or the current market value of the property. The buyer's solicitors typically handle the stamp duty return and payment through the IRD's e-Stamping portal.

A buyer of residential property in Hong Kong who is not a Hong Kong permanent resident, or who is purchasing a residential property but already owns other residential property in Hong Kong, must also pay Buyer's Stamp Duty (BSD) at 15% on top of the regular AVD. The BSD payment must be made simultaneously with or before the stamping of the ASP.

A party executing a Deed of Assignment (conveyance on sale) for Hong Kong immovable property must have the Deed duly stamped before it is registered at the Land Registry. The Land Registry will not register an unstamped or insufficiently stamped deed. Registration of the Deed is essential to protect the buyer's legal title against third parties who may subsequently acquire interests in the same property.

A party to a Hong Kong share transfer — whether the buyer, seller, or their agent — must file a stamp duty return and pay stamp duty on the share transfer instrument (stock transfer form) within 30 days of execution. For unlisted private company share transfers, the parties present the instrument at the IRD's Stamp Office or through e-Stamping. For listed shares traded on the Stock Exchange of Hong Kong, stamp duty is collected automatically by SEHK at the point of trade.

A landlord or tenant who has signed a lease of Hong Kong immovable property must have the lease duly stamped within 30 days of execution. The stamp duty on leases is calculated based on the lease term and the average annual rent, at the rates specified in the First Schedule to Cap. 117.

A company or individual who has executed any other instrument that is a dutiable instrument under Cap. 117 — such as an instrument of exchange of property, a voluntary disposition of property, or an instrument creating a charge over Hong Kong property — must also submit a stamp duty return and pay the applicable duty within the 30-day deadline.

A Hong Kong Stamp Duty Return to the Inland Revenue Department under the Stamp Duty Ordinance (Cap. 117) must include the following key elements to enable the IRD to assess and collect the correct duty on the dutiable instrument.

Instrument type identification: the return must correctly identify the category of dutiable instrument from the First Schedule to the Stamp Duty Ordinance (Cap. 117): agreement for sale and purchase of immovable property; conveyance on sale (deed of assignment) under Head 1(1); lease of immovable property under Head 1(2); instrument for transfer of Hong Kong stock under Head 2; or other specified instrument. The applicable stamp duty rate and any supplementary heads of duty (Buyer's Stamp Duty under section 29CA of Cap. 117, or any residual demand management measures) depend on correct instrument classification and the nature of the property (residential or non-residential).

Property or stock description: for immovable property, the lot number, floor, unit, building name, district, and full address. For Hong Kong stock transferred under Head 2 of the First Schedule to Cap. 117: company name and Companies Registry registration number; class of shares; number of shares; and consideration per share in HKD.

Transaction value: the higher of the stated consideration or current market value in HKD. Where the Stamp Office considers the stated consideration below market value, a professional valuation from a surveyor registered under the Surveyors Registration Ordinance (Cap. 417) or a qualified property valuer is required before the duty is assessed.

Parties' particulars: full legal names; HKID numbers for individual buyers and sellers; company registration numbers under the Companies Ordinance (Cap. 622) for corporate parties; and residential or registered addresses. For the Buyer's Stamp Duty (BSD) component, each buyer's Hong Kong Permanent Resident (HKPR) status under the Immigration Ordinance (Cap. 115) must be confirmed with supporting documentation.

Stamp duty calculation: the instrument type; applicable AVD scale (Scale 1 full rate or Scale 2 concessionary rate under the Stamp Duty Ordinance (Cap. 117)); computed AVD amount; BSD at 15% where applicable under section 29CA; and total stamp duty in HKD. The IRD's e-Stamping portal at www.gov.hk/en/residents/taxes/stamp/ performs the calculation automatically.

Execution date and submission date: the 30-day stamping deadline under Cap. 117 runs from the execution date. For instruments executed outside Hong Kong, the 30-day period runs from the date the instrument is brought into Hong Kong. Late stamping attracts a penalty of up to 10 times the unpaid duty under section 9 of Cap. 117.

Payment: the e-Stamping portal accepts credit card, government payment systems, and Law Society solicitor payment services. The physical Stamp Office at Revenue Tower, 5 Gloucester Road, Wan Chai, Hong Kong accepts cash. Upon payment, the IRD issues a unique stamp certificate number — the evidence of stamping required by the Land Registry under the Land Registration Ordinance (Cap. 128) for registration of property transactions. Section 27 of Cap. 117 empowers the Stamp Office to require a professional valuation where the stated consideration appears below market value for share transfers — the IRD may raise an additional assessment if an undervaluation is detected. For property transactions, the Rating and Valuation Department's assessed annual value and comparable sales data are commonly referenced in valuation disputes.

Section 13 of Cap. 117 governs relief from stamp duty on certain corporate reconstructions and amalgamations. Companies undertaking intra-group property transfers may apply for full or partial relief from AVD where the transfer qualifies as an internal reorganisation. A formal application must be submitted to the Stamp Office with supporting corporate documentation before relief is granted.

The free Stamp Duty Return guide at forms-legal.com assists property buyers and solicitors in understanding their obligations under Cap. 117.

Stamping a dutiable instrument in Hong Kong through a Stamp Duty Return requires identifying the correct instrument type, calculating the applicable duty, and submitting payment through the Inland Revenue Department's e-Stamping service or the physical Stamp Office within 30 days of execution.

Step 1 — Identify the dutiable instrument. Classify the instrument under the First Schedule to the Stamp Duty Ordinance (Cap. 117): agreement for sale and purchase (ASP) of immovable property under Head 1(1); conveyance on sale (deed of assignment); lease of Hong Kong property under Head 1(2); or transfer of Hong Kong stock under Head 2. Correct classification determines the applicable rate and any additional duties.

Step 2 — Note the 30-day stamping deadline. Section 9 of Cap. 117 requires stamping within 30 days of execution in Hong Kong, or 30 days from the date the instrument is brought into Hong Kong if executed outside. For residential property transactions, both the provisional ASP and the formal deed of assignment are separately dutiable instruments each requiring stamping within 30 days of their respective execution dates.

Step 3 — Determine the transaction value. Stamp duty is assessed on the higher of the stated consideration or the current market value in HKD. For immovable property, obtain a professional valuation from a registered surveyor under the Surveyors Registration Ordinance (Cap. 417) if the Stamp Office may query the stated consideration. For share transfers, provide a supporting valuation where the transfer is not at arm's length, as the IRD may raise an additional assessment under Section 27 of Cap. 117 if undervaluation is detected.

Step 4 — Calculate the applicable stamp duty. For residential property, determine whether Scale 1 (full rate, applicable to all non-exempt transactions) or Scale 2 (concessionary rate for eligible Hong Kong permanent residents) applies under Cap. 117. Apply the progressive AVD rate bands from the First Schedule. Check whether Buyer's Stamp Duty (BSD) at 15% applies under Section 29CA — it applies to all corporate purchasers and to individual purchasers who are not Hong Kong permanent residents. For share transfers under Head 2, apply 0.13% per party on the consideration or market value (0.26% total), the rate in force since August 2021. The IRD's e-Stamping portal calculates AVD and BSD automatically on input of transaction details.

Step 5 — Access the Inland Revenue Department's e-Stamping service. Log in and select the relevant instrument type. Enter the transaction details: property address and lot number (for immovable property), or company name and share details (for stock transfers); parties' full legal names and HKID or company registration numbers; stated consideration in HKD; and execution date. The portal displays the computed duty for confirmation.

Step 6 — Pay the assessed duty. Payment through the e-Stamping portal is accepted by credit card or designated government payment channels. On successful payment the IRD generates a unique stamp certificate number, which is the evidence of stamping. For instruments that cannot be processed electronically, present the original instrument at the physical Stamp Office at Revenue Tower, 5 Gloucester Road, Wan Chai, and pay by cashier's order, bank draft, or cash.

Step 7 — Register the instrument where required. Present the stamped deed of assignment to the Land Registry under the Land Registration Ordinance (Cap. 128) for registration, quoting the stamp certificate number. An unstamped instrument is inadmissible as evidence in civil proceedings and cannot be registered at the Land Registry.

Penalties. Late or non-stamping attracts a penalty of up to 10 times the unpaid duty under Section 9 of Cap. 117. For corporate reconstruction relief, apply to the Stamp Office before the transfer under Section 13 of Cap. 117.

Record retention. Keep copies of the stamped instrument, the stamp certificate, and all transaction documents for at least six years from the date of the transaction, as the IRD may review stamp duty compliance during audit or investigation.