In this course · 1 of 4
Course 7
Stamp duty, rent and royalties
4 lessons · 6 min
The short answer
Stamp duty on Hong Kong stock transfers is 0.2% in total (0.1% each on the bought note and the sold note), plus HK$5 on the instrument of transfer, from 17 November 2023. A gift of shares pays HK$5 plus 0.2% of value.
Hong Kong stock includes shares of a company incorporated in Hong Kong, whether listed or private. GovHK sets out the rates for documents from 17 November 2023:
| Document | Rate |
|---|---|
| Contract note (bought note) | 0.1% of consideration or value |
| Contract note (sold note) | 0.1% of consideration or value |
| Transfer of any other kind (instrument of transfer) | HK$5 |
| Transfer operating as a voluntary disposition inter vivos (gift) | HK$5 plus 0.2% of the value |
What this means in practice
- On an arm's-length sale of shares, buyer and seller each pay 0.1%, so the combined duty is 0.2%, plus HK$5 on the instrument.
- The higher of the price and the actual value of the shares is used, so a sale at an undervalue can still be stamped on market value.
- Duty must be paid within a time limit after signing; late stamping attracts penalties.
Related
- The 2026-27 Budget proposed relaxing the intra-group relief for transfers between associated companies (lowering the association threshold from 90% to 75%). That change needs legislation, so check the Stamp Office before relying on it.
- Stamp duty on property transfers works differently (see the property stamp duty answer).
Confirm the rate on the Stamp Office website before signing, as rates have changed several times.
Legal basis and sources
The law
- Stamp Duty Ordinance (Cap. 117), Schedule 1
Official sources
General information for business owners, not legal, tax or professional advice. Rules change, so check the sources or ask a licensed professional before you act.
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