Hong Kong SAR

Individual - Significant developments

Last reviewed - 05 July 2021

Increased stamp duty rate on transfer of HK stock

The Revenue (Stamp Duty) Ordinance 2021 was gazetted on 11 June 2021. Effective from 1 August 2021, the stamp duty rate on transfer of Hong Kong stock will be increased from 0.1% to 0.13% of the consideration or value of each transaction payable by buyers and sellers respectively.

Tax concessions for carried interest

The Inland Revenue (Amendment) (Tax Concessions for Carried Interest) Ordinance 2021 was enacted on 7 May 2021. The Ordinance excludes 100% of eligible carried interest from employment income for the calculation of salaries tax. The carried interest tax concession applies to amounts received by or accrued to a qualifying employee for provisions of qualified investment management services on or after 1 April 2020 retrospectively.

Tax reduction for 2020/21

The Revenue (Tax Concessions) Ordinance 2021 was enacted on 7 May 2021to give effect to the 100% reduction of salaries tax and tax under personal assessment for year of assessment 2020/21, subject to a cap of HKD 10,000.

Abolition of the doubled ad valorem stamp duty on transfer of non-residential property

The Stamp Duty (Amendment) Ordinance 2021 was gazetted on 19 March 2021 to abolish the Doubled Ad Valorem Stamp Duty (DSD) imposed on transfer of non-residential property in Hong Kong. The Ordinance is deemed to have come into operation on 26 November 2020. Accordingly, transfer of non-residential property in Hong Kong executed on or after 26 November 2020 is subject to ad valorem stand duty at Scale 2 rates ranging from HKD 100 (for property consideration of up to HKD 2 million) to 4.25% (for property consideration exceeding HKD 20 million).