CON—Stamp Duty Template
SSD & BSD
SSD
Agreement for Sale (E.g. provisional or formal agreement)
General rule: s. 29 CA → special stamp duty chargeable on certain agreement for sale
STEP 1: Is there an agreement for sale?
 Chargeable Agreement for Sale → s.29A(1)
o Agreement for Sale includes:
 Instrument which a person contracts to sell or purchase
immovable property
 Usual mortgage/charge
 Nomination
 Declaration of Trust
o s. 29A(2): agreement for sale and an unwritten sale agreement may be
enforceable or unenforceable, absolute or conditional, formal or
informal, temporary or permanent, provisional or non-provisional
o s. 29A(3): agreement for sale may consist of 2 or more instruments
STEP 2: Which head?
s. 29CA(1) → agreement for sale chargeable with SSD in accordance with Head 1(1B)
in the 1st Schedule if residential property is acquired on or after 20 November 2010
 Residential property
o Non-residential defined in s. 29A(1)
 Any immovable property which may not be used wholly or
partly for residential purposes under:
 Government Lease
 DMC
 Occupation Permit OR
 Other instruments
o So, residential property if immovable property may be used wholly or
partly for residential purposes under ALL 4 instruments
STEP 3: Calculation of Holding Period
Based on s. 29CA(2) → the amount chargeable under head 1(1B) depends on the
holding period
Calculation of holding period
 State date of acquisition (s. 29CA(5)(a)(i) or (ii) or (b)(i))
o Acquisition date (s. 29CA(5))
 If previous sale has an agreement → s. 29CA(5)(a)(i) = date
of the agreement
 If previous sale has 2 or more chargeable agreements → s.
29CA 5(a)(ii) = the date of the first agreement
 If previous sale has NO agreement and transfer with s.
29CA(5)(b)(i) = date of the conveyance (date of the
assignment)
o See whether date of acquisition is on or after 20 November 2010
 If no = no SSD payable
 If yes + with exception = no need to pay SSD
 If yes + no exception = SSD payable
 State the disposal date (s. 29CA(7))
o s.29CA(7)(a): the date on which the vendor makes a chargeable
agreement for sale that provides for the conveyance of the property
from the vendor; or
o s.29CA(7)(b): (if the chargeable agreement for sale consists of 2 or
more instruments) the date on which the first of those instruments is
made.
 State the holding period
o The holding period is [more than 12 months but less than 24 months
(from xx MONTH YEAR to xx MONTH YEAR)
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SSD & BSD
STEP 4: Exception: Transferred to closely related person (s. 29CA(10)  Company holding 90% or more of another company, they are
 s. 29CA(10): associated body corporates OR
 SSD does not apply if the person whom the residential property is vested or  Holding company hold 90% or more of 2 subsidiaries, the 2
transferred to is a closely related person. subsidiaries will be associated body corporates
 Closely Related  s. 29H(3): even the agreement would not be chargeable as long as the
o s29AD of SDO: assignment is not chargeable under s. 45(1)
 2 persons are closely related if one of them is the
parent/spouse/child/brother/sister of the other and STEP 5: How much?
 3 or more are closely related if each of them is a
parent/spouse/child/brother/sister of the other. Holding Period The property was The property was acquired
 Need to provide: acquired on or after 20 on or after 27 October 2012
o Statutory declaration November 2010 and
o Documentary evidence to prove the relationship among the relevant before 27 October 2012
parties (e.g. HKID card, marriage certificate/birth certificate).
</= 6 months 15% (Part 1 para (a)) 20% (Part 2 para (a))
 s. 29CA(11) – other exceptions
o 11(a): the agreement is made in pursuant to any decree or order of any > 6 months but </= 10% (Part 1 para (b)) 15% (Part 2 para (b))
court 12 months
o 11(b): the residential property
 (i) was transferred to or vested in the vendor by or pursuant
> 12 months but </= 5% (Part 1 para (c)) 10% (Part 2 para (c))
to any decree or order of any court 24 months
 (ii) relates solely to the estate of a deceased person
> 24 months but N/A 10% (Part 2 para (c))
 (iii) was devised by or otherwise passed on death of the
</=36 months
deceased person under a will, the law of intestacy or right of
survivorship to the vendor
 (iv) relates solely to a bankrupt’s estate  Refer to the consideration of the current transaction
 (v) relates solely to the property of a company being wounded o Or market value if the Inland Revenue suspect the sale is undervalue
up o Can have Inland Revenue adjudicate whether the consideration is
 (vi) subject to sale by a mortgagee or a receiver appointed by undervalue → s. 13 of SDO
such a mortgagee  E.g. give the IRD some documents to proof the value of the
 s. 45(1): if there is a transfer of properties among associate body corporates, property and pay HKD$50
stamp duty would be relieved on the conveyance on sale (assignment)
o Definition of associated body corporates - s45(2):

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 CON—Stamp Duty Template
SSD & BSD
STEP 6: When to Pay?
 Head 1(1B) Para B: Same time as AVD is payable = 30 days after execution
of CS; or 30 days after the “relevant date” (date of AS)

STEP 7: Who has to pay?

 Head 1(1B) Para C: Both the vendor and purchaser are liable to the
government to pay the SSD – how you divide it amongst yourself is not the
business of the government
o Same as that for AVD, prima facie, all parties to the relevant
instruments are jointly and severally liable for paying SSD

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Conveyance on Sale (assignment)
General Rule: s.29DA → special stamp duty chargeable for certain conveyance of sale
STEP 1: Is there a conveyance on sale?
 Assignment = within the meaning of conveyance on sale in s. 2 SDO
 If Deed of gift = within meaning of conveyance on sale in s. 2 SDO
o s. 27 SDO also specifies that any conveyance of immoveable property
of no valuable consideration shall be chargeable with stamp duty as a
conveyance on sale
STEP 2: Which head?
s. 29DA(1) → conveyance on sale chargeable with SSD in accordance with Head 1(1B)
in the 1st Schedule if residential property is acquired on or after 20 November 2010
 Residential property
o Non-residential defined in s. 29A(1)
 Any immovable property which may not be used wholly or
partly for residential purposes under:
 Government Lease
 DMC
 Occupation Permit OR
 Other instruments
o So, residential property if immovable property may be used wholly or
partly for residential purposes under ALL 4 instruments
STEP 3: Calculation of Holding Period
Based on s. 29DA(2) → the amount chargeable under head 1(1AA) depends on the
holding period
Calculation of holding period
 State date of acquisition (s. 29DA(5)(a)(i) or (ii) or (b)(i))
o Acquisition date (s. 29DA(5))
CON—Stamp Duty Template
SSD & BSD
 If previous sale has an agreement → s. 29DA(5)(a)(i) = date
of the agreement
 If previous sale has 2 or more chargeable agreements → s.
29DA 5(a)(ii) = the date of the first agreement
 If previous sale has NO agreement and transfer with s.
29DA(5)(b)(i) = date of the conveyance (date of the
assignment)
o See whether date of acquisition is on or after 20 November 2010
 If no = no SSD payable
 If yes + with exception = no need to pay SSD
 If yes + no exception = SSD payable
 State the disposal date (s. 29DA(7))
o s.29DA(7)(a): the date of the conveyance on sale of the property under
which the property is transferred or divested from the transferor
(Vendor); or
o s.29DA(7)(b): (if the conveyance on sale consists of 2 or more
instruments) the date on which the first of those instruments is made.
 State the holding period
o The holding period is [more than 12 months but less than 24 months
(from xx MONTH YEAR to xx MONTH YEAR)
STEP 4: Exception: Transferred to closely related person (s. 29DA(10))
s. 29DA(10):
 SSD does not apply if the person whom the residential property is vested or
transferred to is a closely related person.
 Closely Related
o s29AD of SDO:
 2 persons are closely related if one of them is the
parent/spouse/child/brother/sister of the other and
 3 or more are closely related if each of them is a
parent/spouse/child/brother/sister of the other.
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 CON—Stamp Duty Template
SSD & BSD
 Need to provide: STEP 5: How much?
o Statutory declaration
o Documentary evidence to prove the relationship among the relevant
Holding Period The property was The property was acquired
parties (e.g. HKID card, marriage certificate/birth certificate). acquired on or after 20 on or after 27 October 2012
Other Exceptions November 2010 and
 s. 29DA(11) – other exceptions before 27 October 2012
o 11(a): the agreement is made in pursuant to any decree or order of any
court </= 6 months 15% (Part 1 para (a)) 20% (Part 2 para (a))
o 11(b): the residential property
 (i) was transferred to or vested in the vendor by or pursuant > 6 months but </= 10% (Part 1 para (b)) 15% (Part 2 para (b))
to any decree or order of any court 12 months
 (ii) relates solely to the estate of a deceased person
 (iii) was devised by or otherwise passed on death of the > 12 months but </= 5% (Part 1 para (c)) 10% (Part 2 para (c))
deceased person under a will, the law of intestacy or right of 24 months
survivorship to the vendor
> 24 months but N/A 10% (Part 2 para (c))
 (iv) relates solely to a bankrupt’s estate
</=36 months
 (v) relates solely to the property of a company being wounded
up
 (vi) subject to sale by a mortgagee or a receiver appointed by  Refer to the consideration of the current transaction
such a mortgagee o Or market value if the Inland Revenue suspect the sale is undervalue
 s. 45(1): if there is a transfer of properties among associate body corporates, o Can have Inland Revenue adjudicate whether the consideration is
stamp duty would be relieved on the conveyance on sale (assignment) undervalue → s. 13 of SDO
o Definition of associated body corporates - s45(2):  E.g. give the IRD some documents to proof the value of the
 Company holding 90% or more of another company, they are property and pay HKD$50
associated body corporates OR
 Holding company hold 90% or more of 2 subsidiaries, the 2 STEP 6: When to Pay?
subsidiaries will be associated body corporates  Head 1(1AA) Para B: Same time as AVD is payable = 30 days after execution
 s. 29H(3): even the agreement would not be chargeable as long as the of CS; or 30 days after the “relevant date” (date of AS)
assignment is not chargeable under s. 45(1)

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 CON—Stamp Duty Template
SSD & BSD
STEP 7: Who to pay?
 Head 1(1AA) Para C: Both the vendor and purchaser are liable to the
government to pay the SSD – how you divide it amongst yourself is not the
business of the government
o Same as that for AVD, prima facie, all parties to the relevant
instruments are jointly and severally liable for paying SSD