Welcome to HK Account Q&A. (DISCLAIMER: All information provided on this website is for self-reference only. We are not responsible for any decisions made, financial or otherwise, based on information or links provided by us. We do not guarantee the accuracy of the information. Readers are reminded that you use such information and materials entirely at your own risk. Web editor gives no warranty and accepts no responsibility or liability for the accuracy or the completeness of the information and materials contained in this website. Under no circumstances will this web's editor be held responsible or liable in any way for any claims, damages, losses, expenses, costs or liabilities whatsoever resulting or arising directly or indirectly from readers' reliance on the information and materials on this website.)
0 votes

“Bought and Sold Notes” (also call Contract notes) must be submitted for stamping within two days (30 days if the sale takes place outside Hong Kong) of their execution. Ad valorem stamp duty is levied on each contract note (i.e. both the bought note and the sold note) at the amount whichever is the higher of the consideration paid or the value of the shares transferred.

“Transfer as a gift” must be submitted for stamping within one week (30 days if the sale takes place outside Hong Kong) of their execution. Ad valorem stamp duty is levied on each Instrument of Transfer as Gift at the the value of the shares transferred.

asked by (9k points)

1 Answer

0 votes

DIPN for Stamp Duty (source: https://www.ird.gov.hk/eng/ppr/dip.htm#cedoipn):

  1. Stamping of agreements for sale and purchase of immovable property [issed in November 2018]
  2. Relief for stock borrowing and lending transactions [issued in February 2011]
  3. Deemed consideration under section 24 of the Stamp Duty Ordinance, Cap.117 [issued in September 1998]
  4. Deemed sale and purchase under section 19(1E) of the Stamp Duty Ordinance, Cap.117  [issued in 25 January 2000]
  5. Special Stamp Duty  [issued in July 2014]
  6. Alternative Bond Schemes  [issued in August 2014]
  7. Buyer's Stamp Duty  [issued in July 2014]
  8. Ad Valorem Stamp Duty  [issued in November 2018]

IRD's interpretation for 印花稅條例第 29/29G 條 一系列交易: https://www.ird.gov.hk/chi/pdf/soa_pn04b.pdf?tdsourcetag=s_pcqq_aiomsg

PS 1: for Company that 

  • not yet take any business activities, 
  • having huge share capital amount, say 100 million Hong Kong dollars, which wasn't paid up, i.e., 100 million Hong Kong dollars still due from shareholder.

to prevent Stamp duty officer stamp the share transfer of the Company based on share capital amount HKD 100 million, should submit management accounts shown that the net asset value of the Company is zero and an agreement that the HKD 100 million loan was shifted to new shareholder. Without that management account and agreement, the Stamp Duty may be calculated based on HKD 100 million. 

May first time submit, assessor assessed on HKD 100 million, you can try to submit 2nd time, another assessor may assess on zero net asset of the Company.

(Reference: In the case of unquoted shares, the value of the stock has to be ascertained from the latest accounts of the company in respect of which share(s) therein is/are to be transferred. Link: https://www.ird.gov.hk/eng/pdf/pn04a.pdf

PS 2: IRD Stamp Duty department doesn't keep copies of documents stamped. You can't recover the documents from them, don't miss the original.

answered by (9k points)
...