Stamp Duty on share capital is also known as capital duty in many other countries. Stamp Duty on share capital in Hong Kong is as follows:
No Stamp Duty is payable on the allotment of shares.
Stamp Duty is payable on the transfer of shares as below.
Stamp Duty is payable on:
Transfer by way of sale or purchase of any Hong Kong stock
Transfer by way of gift of Hong Kong stock
Transfer of any other kind
The rate of Stamp Duty and the time limit for stamping are as follows:
For Contract Note for sale or purchase of any Hong Kong stock - 0.1% of the consideration or Net Asset Value, whichever is higher, on every sold and bought note. Stamp duty must be paid within 2 days after the sale or purchase, if effected in Hong Kong; within 30 days after the sale or purchase, if effected elsewhere.
For transfers by way of gift - HKD 5 + 0.2% of the value of the stock - Stamp duty must be paid within 7 days after the instrument of transfer, if executed in Hong Kong; within 30 days after the execution, if executed elsewhere.
For transfers of any other kind - HKD 5 - Stamp Duty must be paid before the execution date, if executed in Hong Kong; within 30 days after the execution date, if executed outside Hong Kong.
Note: Certain transfers are exempted in connection with a stock borrowing and lending arrangement. If you would like to know more, please click here.