Hong Kong SAR

New legislation enacted

The following legislation was enacted in the past 12 months:

• The Stamp Duty Legislation (Miscellaneous Amendments) Ordinance 2024 was gazetted on 20 December 2024 to (i) waive the stamp duty payable in respect of the transfer of real estate investment trust (REIT) shares or units and jobbing business of options market makers and (ii) adjust the stamp duty collection arrangement involving approved securities registrars under the uncertificated securities market regime. The Amendment Ordinance relating to the stamp duty waiver came into operation on 21 December 2024.
• The Rating (Amendment) Ordinance 2024 was gazetted on 1 November 2024 to implement a progressive rating system for domestic tenements with rateable value over HKD 550,000. The new system will take effect from the fourth quarter of the financial year 2024/25, i.e. January to March 2025.
• The Inland Revenue (Amendment) (Tax Concessions and Two-tiered Standard Rates) Ordinance 2024 was gazetted on 31 May 2024 to give effect to (i) the 100% reduction of salaries tax and tax under personal assessment for the year of assessment 2023/24, subject to a cap of HKD 3,000 Hong Kong dollars, (ii) raising the accommodation-related tax deduction ceilings (i.e. home loan interest or domestic rents) to support taxpayers residing with a child born on or after 25 October 2023 from HKD 100,000 to HKD 120,000 starting from the year of assessment 2024/25, and (iii) implementing the two-tiered standard rates regime for salaries tax and tax under personal assessment starting from the year of assessment 2024/25.
• The Stamp Duty (Amendment) Ordinance 2024 (Ordinance) was gazetted on 19 April 2024 to give effect to the demand-side management measures for residential properties, which include (i) replacing the existing flat rate of ad valorem stamp duty payable on certain instruments dealing with residential properties with new rates that are the same as those for non-residential properties and (ii) lowering the rate of special stamp duty payable on certain instruments dealing with residential properties and the rate of buyer’s stamp duty payable on certain instruments to 0%.
• The Stamp Duty (Amendment) (Residential Properties) Ordinance 2024 (Ordinance) was gazetted on 9 February 2024 to give effect to the demand-side management measures for residential properties, which include (i) shortening the applicable period of the special stamp duty from 36 months to 24 months, (ii) reducing the respective rates of the buyer’s stamp duty and new residential stamp duty from 15% to 7.5%, and (iii) introducing a stamp duty suspension arrangement for incoming talents’ acquisition of residential properties. These measures have been cancelled through the enactment of the Stamp Duty (Amendment) Ordinance 2024, above.