HK Confirms Reduction Of Transaction Levy

by Mary Swire, Tax-News.com, Hong Kong

17 September 2010

Hong Kong’s Securities and Futures Commission (SFC) has confirmed that the levy payable in respect of trading in securities, futures or options contracts will be cut by 25% with effect from October 1, 2010.

“We have decided to reduce the levy after a careful review of our reserves position. We believe the benefit of lower transaction costs will positively impact market participation,” said Martin Wheatley, the SFC’s Chief Executive Officer.

Under the Securities and Futures (Levy) (Amendment) Order 2010, the levy payable by a seller or a purchaser in respect of a transaction of securities will be reduced from 0.004% to 0.003%; and in respect of a transaction of a futures contract will be reduced from HKD0.80 (USD0.10) to HKD0.60.

The levy on a transaction of a Mini-Hang Seng Index Futures Contract, a Mini-Hang Seng Index Options Contract and a Mini-Hang Seng China Enterprises Index Futures Contract will be reduced from HKD0.16 to HKD0.12; a transaction of a stock futures contract, or an option for such a contract, will also be reduced from HKD0.16 to HKD0.12.

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