Hong Kong has gazetted legislation that will impose Buyer's Stamp Duty on residential properties acquired by non-Hong Kong permanent residents.
The Stamp Duty (Amendment) Bill 2012 will be tabled at the Legislative Council on January 9, 2013. Its provisions will be applicable to all residential properties acquired on or after October 27, 2012.
Under the reforms, the Buyer's Stamp Duty will be charged at a flat rate of 15% for all residential properties. It will be levied on top of the existing stamp duty and the Special Stamp Duty, where applicable, on any such property acquired by any person or entity, except a Hong Kong permanent resident.
The legislation also extends the Special Stamp Duty's coverage period and adjusts its rates. The duty will have three levels of regressive rates for different holding periods. It will apply at 20% of the amount or value of the consideration if the residential property has been held for six months or less; 15% for properties held for between six and 12 months; and at 10% for those held for more than 12 but less than 36 months..
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