{"id":4699,"date":"2025-05-23T11:21:23","date_gmt":"2025-05-23T03:21:23","guid":{"rendered":"https:\/\/reaphk.com\/stamp-duty-is-calculated-on-the-transfer-of-company-shares\/"},"modified":"2025-06-30T10:47:26","modified_gmt":"2025-06-30T02:47:26","slug":"stamp-duty-is-calculated-on-the-transfer-of-company-shares","status":"publish","type":"post","link":"https:\/\/reaphk.com\/en\/stamp-duty-is-calculated-on-the-transfer-of-company-shares\/","title":{"rendered":"Stamp duty is calculated on the transfer of company shares"},"content":{"rendered":"\t\t
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Hong Kong “Share Transfer” Stamp Duty Calculation (Applicable to Hong Kong Limited Company Shares Only)<\/p>

  1. Tax rate and calculation basis<\/strong><\/li><\/ol>

    – Tax rate**: 0.2 %\uff08\u8cb7\u8ce3\u96d9\u65b9\u5404\u4ed80.1%, for a total tax rate of 0.2% of the transaction amount). <\/p>

    – Tax basis: whichever is higher<\/strong> of the “actual consideration” or “market value of shares” of the shares. <\/p>

    1. Gratuitous transfer (gift)<\/strong><\/li><\/ol>

      – If there is no consideration for the transfer (e.g. a gift from a relative), stamp duty will still be calculated based on the market value<\/strong> of the shares. <\/p>

      – However, exemption may be made in some cases (supporting documents such as statutory declarations are required).<\/p>

      Key Details & Exemptions:<\/strong><\/p>

      1. Scope of application<\/li><\/ol>

        – Only applicable to the transfer of shares in a Hong Kong registered limited company. <\/p>

        1. Exemption conditions<\/li><\/ol>

          – Internal Organisation: An exemption may be applied for for a qualifying intra-group transfer under Part XIVA of the Companies Ordinance. <\/p>

          – Relative transfers: Evidence of no business purpose (e.g., distribution of family assets) is required, but may still be subject to market value.<\/p>

          1. Declaration and payment<\/li><\/ol>

            – Instrument of Transfer** and tax must be paid within 30 days of the transfer. <\/p>

            – Late fines: up to 10 times<\/strong> the tax.<\/p>

            <\/p>

            Process:<\/strong><\/p>

            1. Assess the value of shares<\/li><\/ol>

              – Refer to the company’s net assets, recent transaction history, or professional valuation reports.<\/p>

              1. Make a file<\/li><\/ol>

                – Use of Contract Notes (usually handled by a secretarial company, in some cases by a solicitor). <\/p>

                1. Pay stamp duty<\/li><\/ol>

                  – Obtain a stamp certificate through the website of the Inland Revenue Department of Hong Kong or in person. <\/p>

                  1. Complete the transfer<\/li><\/ol>

                    – Submit the stamped document to the Companies Registry for updating the register of members.<\/p>

                    <\/p>

                    Inland Revenue Department (IRD) https:\/\/www.gov.hk\/tc\/residents\/taxes\/etax\/services\/share_transfer_computation.htm<\/a><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

                    Hong Kong “Share Transfer” Stamp Duty Calculation (Applicable to Hong Kong Limited Company Shares Only) Tax rate and calculation basis – Tax rate**: 0.2 %\uff08\u8cb7\u8ce3\u96d9\u65b9\u5404\u4ed80.1%, for a total tax rate of 0.2% of the transaction amount). – Tax basis: whichever is higher of the “actual consideration” or “market value of shares” of the shares. Gratuitous …<\/p>\n","protected":false},"author":9,"featured_media":4664,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"none","_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[48],"tags":[],"class_list":["post-4699","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-company-secretary-en"],"_links":{"self":[{"href":"https:\/\/reaphk.com\/en\/wp-json\/wp\/v2\/posts\/4699","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/reaphk.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/reaphk.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/reaphk.com\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/reaphk.com\/en\/wp-json\/wp\/v2\/comments?post=4699"}],"version-history":[{"count":7,"href":"https:\/\/reaphk.com\/en\/wp-json\/wp\/v2\/posts\/4699\/revisions"}],"predecessor-version":[{"id":4724,"href":"https:\/\/reaphk.com\/en\/wp-json\/wp\/v2\/posts\/4699\/revisions\/4724"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/reaphk.com\/en\/wp-json\/wp\/v2\/media\/4664"}],"wp:attachment":[{"href":"https:\/\/reaphk.com\/en\/wp-json\/wp\/v2\/media?parent=4699"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/reaphk.com\/en\/wp-json\/wp\/v2\/categories?post=4699"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/reaphk.com\/en\/wp-json\/wp\/v2\/tags?post=4699"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}