HK greenlights amendments to the Stamp Duty bill

The amended law introduces a refund mechanism under the Buyer's Stamp Duty, amongst others.

To further attract talent from around the world to stay longer in Hong Kong, the Legislative Council passed the Stamp Duty (Amendment) (No. 2) Bill 2023.

The amended law introduces a refund mechanism under the Buyer's Stamp Duty and the New Residential Stamp Duty regimes.

The amended law allows eligible talent who entered Hong Kong under a designated talent admission scheme and eventually became a permanent resident, to apply for a refund of duties paid for a residential property they acquired on or after October 19, 2022, as long as it was their first property at that time.

“The Ad Valorem Stamp Duty at Scale 2 rates, ie the rates applicable to first-time home buyers who are Hong Kong permanent residents, will still be payable,” the government clarified.

Deputy Chief Secretary Cheuk Wing-hing said the refund mechanism will bring the overall stamp duty charged on eligible incoming talent on par with that levied on first-time home buyers who are Hong Kong permanent residents, thereby reducing the cost of home purchase for incoming talent who can and wish to buy residential properties in Hong Kong.

The Inland Revenue Department will accept refund applications from incoming talent following the gazettal of the amended ordinance on June 30.