Stamp Duty

A tenancy document is usually executed in counterparts, both of which are forwarded to the Stamp Office of the Inland Revenue Department for stamping within 30 days after the date of execution.

If the tenancy document is a Lease, then it should also be registered at the Land Registry within 30 days of the date of execution, otherwise it will lose priority under the Land Registration Ordinance (Cap.128 of the Laws of Hong Kong). 

Failing to stamp a tenancy document, the landlord and the tenant will be liable to civil proceedings by the Collector of Stamp Duty of the Inland Revenue Department.

Moreover, a tenancy document must be stamped before it can be lodged with the Lands Registry for registration.

A more important consequence is that the Court may not accept an unstamped tenancy document as evidence in civil proceedings. In other words, a party will have difficulties in enforcing the tenancy document against the other party (who has breached the Tenancy Agreement or Lease) in Court.

For lease, duty is calculated at rates which vary with the term of the lease as follows :- 
Stamp Duty Rate
Stamp duty is calculated at rates which vary with the term of the lease as follows:

Term

Rate

Not defined or is uncertain

0.25% x of the yearly or average yearly rent (Note 1)

Exceeds

Does not exceed

 

 

1 year

0.25% x of the total rent payable over the term of the lease (Note 1)

1 year

3 years

0.5% x of the yearly or average yearly rent (Note 1)

3 years

.

1% x of the yearly or average yearly rent (Note 1)

Key money, construction fee etc. mentioned in the lease

3.75% of the consideration if rent is also payable under the lease. Otherwise, same duty as for a sale of immovable property

Duplicate or counterpart

$5 each
Note:
1: The yearly rent/average yearly rent/total rent has to be rounded-up to the nearest $100.
Please note that any deposit which may be mentioned in the lease will not be taken into account in assessing the stamp duty.
With effect from 1 September 2001, stamp duty on sale or purchase of any Hong Kong stock is charged at rate which vary with the amount or value of the consideration as follows:

Nature of Document

Rate

Contract Note for sale or purchase of any Hong Kong stock

0.1% of the amount of the consideration or of its value on every sold note and every bought note

Transfer operating as a voluntary disposition inter vivos

$5 + 0.2% of the value of the stock

Transfer of any other kind

$5
For more details, please see: http://www.ird.gov.hk/chi/pdf/irsd119.pdf

Inland Revenue Department -- Stamp Duty

The Land Registry -- Deeds registration
 
Source : The Estate Agents Authonty