4. How much stamp duty is payable for the sale and purchase agreement for the property?
  
The formal agreement must be stamped either: i) within 30 days of the signing of the provisional agreement, or ii) within 30 days of the formal agreement if it is to be signed within 14 days of the provisional agreement. The purchaser's solicitor will take care of this matter.
The rate of the stamp duty varies in accordance with the price of the property as follows:
Property Price |
Rate |
Exceeds |
Does not exceed |
|
$2,000,000 |
$100 |
$2,000,000 |
$2,351,760 |
$100 + 10% of excess over $2,000,000 |
$2,351,760 |
$3,000,000 |
1.5% |
$3,000,000 |
$3,290,320 |
$45,000 + 10% of excess over $3,000,000 |
$3,290,320 |
$4,000,000 |
2.25% |
$4,000,000 |
$4,428,570 |
$90,000 + 10% of excess over $4,000,000 |
$4,428,570 |
$6,000,000 |
3% |
$6,000,000 |
$6,720,000 |
$180,000 + 10% of excess over $6,000,000 |
$6,720,000 |
|
3.75% |
Example
Suppose the purchase price of a residential flat is $3,200,000, then the stamp duty payable for the formal sale and purchase agreement is:
$45,000 + 10% of excess over $3,000,000
= $45,000 + 10% of $200,000
= $65,000
For further details about stamp duty, you can go to the Inland Revenue Department's webpage at http://www.ird.gov.hk/eng/tax/sdu.htm
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