On November 25, 2020, the Chief Executive announced in her Policy Address the abolition of Doubled Ad Valorem Stamp Duty (DSD) on non-residential property transactions, with effect from November 26, 2020. The abolition will revert the ad valorem stamp duty rates chargeable on non-residential property transactions to the Scale 2 rates as below:
|
Consideration or value of the property |
Rates at Scale 2 |
|
Up to $2,000,000 |
$100 |
|
$2,000,001 to $2,351,760 |
$100+10% of the excess over $2,000,000 |
|
$2,351,761 to $3,000,000 |
1.50% |
|
$3,000,001 to $3,290,320 |
$45,000+10% of the excess over $3,000,000 |
|
$3,290,321 to $4,000,000 |
2.25% |
|
$4,000,001 to $4,428,570 |
$90,000+10% of the excess over $4,000,000 |
|
$4,428,571 to $6,000,000 |
3.00% |
|
$6,000,001 to $6,720,000 |
$180,000+10% of the excess over $6,000,000 |
|
$6,720,001 to $20,000,000 |
3.75% |
|
$20,000,001 to $21,739,120 |
$750,000+10% of the excess over $20,000,000 |
|
$21,739,121 and above |
4.25% |
DSD was introduced in 2013 to address the overheating property market. The current market situation is different because of economic downturn and uncertainties surrounding the COVID-19 pandemic. The Government considers it is now the appropriate time to abolish DSD as a demand-side management measure.
The Stamp Duty (Amendment) Bill 2020 (the Bill) gives effect to the abolition will be introduced into LegCo on December 2, 2020. To allow the relevant property owners to benefit from the abolition of DSD as soon as possible, the Chief Executive has made the Public Revenue Protection (Stamp Duty) Order 2020 (the Order) by exercising her statutory powers to give full force and effect of law to the Bill so long as the Order remains in force.
For more information, please contact Ms. Amie Cheung at amie.cheung@lccpa.com.hk
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