Stamp Duty on share capital is also known as capital duty on share capital 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 time limit for stamping is 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 note and every 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 execution of 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 date of execution, if executed in Hong Kong; within 30 days after the date of execution, if executed outside Hong Kong.

Note: There are certain exemptions, to certain transfers in connection with a stock borrowing and lending arrangement. To know more, click here.

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