Hong Kong’s Transport and Housing Bureau has confirmed that the specific provisions of the legislation to impose a Special Stamp Duty which, it is hoped, will curb speculative transactions in residential properties, was gazetted on December 3.
The Stamp Duty (Amendment) (No.2) Bill 2010 will introduce the Special Stamp Duty on residential property transactions of all values acquired from November 20, 2010 and resold within two years, in addition to the current ad valorem stamp duty.
The Special Stamp Duty payable will be based on different holding periods - 15% for property held for six months or less; 10% for more than six months but one year or less; and 5% for more than one year but less than two years.
In addition, the bill states that all residential property transactions, regardless of value, must have stamp duty paid within 30 days of signing the sale and purchase agreement, and disallows the deferred payment of stamp duty on all sales valued at HKD20m (USD2.6m) or below.
The bill will also be tabled at the Legislative Council on December 8.
A comprehensive report in our Intelligence Report series dealing with the issues raised by international property investment, and the possible taxation implications raised by such purchases, with an account of the likely (and some less obvious) potential countries for your consideration, is available in the Lowtax Library at http://www.lowtaxlibrary.com/asp/subs_reports.asp and a description of the report can be seen at http://www.lowtaxlibrary.com/asp/description_report15.aspTags: tax | law | investment | real-estate | legislation | real-estate investment | stamp duty | Hong Kong | Hong Kong
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