What you need to know about the stamp duty bill

The refund mechanism will attract  incoming talent to live in Hong Kong.

As the stamp duty bill 2023 recently gazetted, the government releases facts about the measure sought to trawl for talent.

In a statement, the government said the bill proposes a refund mechanism under the "Buyer's Stamp Duty (BSD) and New Residential Stamp Duty (NRSD) regimes for non-Hong Kong permanent residents who have entered Hong Kong under designated talent admission schemes."

Qualified incoming talent who acquired a residential property in Hong Kong on or after October 19, 2022 and subsequently become a Hong Kong permanent resident, can apply for a refund of the BSD and NRSD paid for that property which was his/her only residential property (save for replacing property) at the time of purchase and he/she still holds on the date of the refund application.

The Ad Valorem Stamp Duty at Scale 2 rates will still be payable such that the overall stamp duty charged will be on par with that levied on first-time home buyers who are permanent residents.

The bill will be introduced into the Legislative Council on April 19 for first and second readings.

The Inland Revenue Department will accept refund applications after the council gives it greenlight and once the bill is published into law.

Amidst shortage of talent pool, the Government said the proposed refund mechanism can woo incoming talent to stay in Hong Kong for long-term development by substantially reducing their cost of property purchase.