Hong Kong Stamp Duty – Stamping of Tenancy Agreement (2)

Previously, Centre O talked about what is stamp duty and how to submit the stamp duty. In this blog, Centre O is going to talk about the duty rates, penalty and show you how to calculate the stamp duty.

Duty Rates

Stamp duty on tenancy agreements is calculated at rates. And the rate is vary with the term of the tenancy as follows: –

TermStamp Duty Rate
Not defined or is uncertain0.25% of the yearly or average yearly rent
Does not exceed 1 year0.25% of the total rent payable
Exceeds 1 years but not exceed 3 years0.5% of the yearly or average yearly rent
Exceed 3 years1% of the yearly or average yearly rent
Key money, construction fee etc.
mentioned in the tenancy agreement
4.25 of the consideration if rent is also payable under the tenancy agreement. Otherwise, same duty as for a sale of immovable property
Duplicate or counterpart$5 each

Penalty for Late Stamping

If you forgot or late to stamp. Then you are subject to have a penalty payment as below: –

Stamping DelayPenalty
Not exceeding 1 month2 times the amount of stamp duty
Exceeding 1 month but less than 3 months4 times the amount of stamp duty
Any other case10 times the amount of stamp duty

How to calculate the stamp duty

In order to show you a clear picture of the calculation, we have drafted some examples. Yet, the document is stamping within 30 days from the date of signing. Otherwise, there will be penalties.

1/ Fixed Rent8 months agreement with monthly rental $5000 Calculation: $5000x8x0.25% = $100
2/ Fixed Rent with duplicate24 months agreement with monthly rental $5000 + 2 copies Calculation: $5000x24x0.5% +$5 = $605
3/ Varied Rent48 months agreement + 2 copies First 24 months: $12,000 Last 24 months: $15,000 ($12000×24+$15000×24)/4 x 1% +$5 = $1625
4/ Rent-Free Period24 months agreement with 2 months rent-free period + 2 copies Monthly rental: $10,000 ($10000×22)/2x 0.5% +$5 = $555

For further information, please contact us.