CALCULATE STAMP DUTY RATES FOR COMPANY SHARE TRANSFER

What is a Stamp Duty? 

Stamp duty is the tax governments place on legal documents, usually in the transfer of assets or property. Governments impose stamp duties, also known as stamp taxes, on documents that are needed to legally record certain types of transactions. 

Stamping of Shares Transfer

When you are going to do the Shares Transfer, your Company Secretary will prepare a Contract Notes. Once any sale or purchase of Hong Kong stock. Then Contract Notes are required to be executed and stamped. 

How to calculate Stamp Duty Rates for Company Shares Transfer? 

On Sale or Transfer of Immovable Property in Hong Kong 

Any instrument executed on or after 26 November 2020 for the sale and purchase or transfer of non-residential property will be subject to Ad Valorem Stamp Duty (AVD) at the rates under Scale 2. 

With effect from 5 November 2016, Scale 1 AVD rates are divided into Part 1 and Part 2. Part 1 of Scale 1 applies to instruments of residential property and Part 2 of Scale 1 applies to instruments of non-residential property and certain instruments of residential property executed on or after 23 February 2013 but before 5 November 2016. Part 2 of Scale 1 is in essence the prevailing AVD at Scale 1 rates before 5 November 2016. The rates at Scale 1 are as follows: 

Part 1 of Scale 1 (Applicable to instruments of residential property executed on or after 5 November 2016 ):

A flat rate of 15% of the consideration or value of the property (whichever is the higher)

Part 2 of Scale 1 (Applicable to instruments of residential property executed on or after 23 February 2013 but before 5 November 2016 and instruments of non-residential property executed on or after 23 February 2013): 

Stamp Duty Rates Table

(Where the stamp duty calculated includes a fraction of $1, round-up the duty to the nearest $1.)

Amount or value of the consideration

(Whichever is the higher)

 

Rates at Scale 1 (Part 2)

Exceeds Does not Exceed
  $2,000,000 1.5%
$2,000,000 $2,176,470 $30,000 + 20% of excess over $2,000,000
$2,176,470 $3,000,000 3%
$3,000,000 $3,290,330 $90,000 + 20% of excess over $3,000,000
$3,290,330 $4,000,000 4.5%
$4,000,000 $4,428,580 $180,000 + 20% of excess over $4,000,000
$4,428,580 $6,000,000 6%
$6,000,000 $6,720,000 $360,000 + 20% of excess over $6,000,000
$6,720,000 $20,000,000  7.5%
$20,000,000 $21,739,130 $1,500,000 + 20% of excess over $20,000,000
$21,739,130   8.5%

 

For further information, please contact us. 

You may want to read: WHAT DO YOU NEED FOR A SHARE TRANSFER?

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