How much stamp duty do I pay when transferring shares in a Hong Kong company?
Since 17 November 2023, stamp duty on Hong Kong stock is 0.1% on each bought note and 0.1% on each sold note, so 0.2% in total, calculated on the consideration or value. The instrument of transfer carries a fixed HK$5. Gifts of shares carry 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
- Stamp Duty Ordinance (Cap. 117), Schedule 1
Sources
Applies to As at 2026-10-29 · Last reviewed 29 October 2026
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.
Related questions
- What stamp duty applies to buying property or signing a lease in Hong Kong?For property instruments signed on or after 26 February 2026, ad valorem duty runs from a flat HK$100 up to HK$4 million to 4.25% for values between about HK$21.7 million and HK$100 million. Above HK$100 million, residential property is charged more (6.5% beyond about HK$109.6 million); non-residential stays at 4.25%. Leases pay 0.25% to 1% of rent depending on term.
- Do I have to withhold tax when paying royalties to a non-resident from Hong Kong?Yes, if the royalty is for the use of IP in Hong Kong. The non-resident is chargeable to profits tax on 30% of the royalty and the Hong Kong payer must deduct the tax when paying. That gives an effective rate of about 4.95% for a corporation at 16.5%, or 100% of the payment is taxed if paid to certain associates.
- Does a Hong Kong company pay tax on profits earned overseas?Generally no. Profits sourced outside Hong Kong are outside the profits tax charge, even if the company is incorporated here. The exceptions are certain foreign-sourced passive income received in Hong Kong by members of multinational groups under the FSIE regime, and any profits the IRD finds are actually sourced in Hong Kong.
- Does Hong Kong have VAT, GST or sales tax?No. Hong Kong has no value-added tax, goods and services tax or sales tax. The only taxes on income are profits tax, salaries tax and property tax, plus duties such as stamp duty. The government also confirms there is no capital gains tax and no withholding tax on dividends or interest.
- What is the profits tax rate for a Hong Kong company?Under the two-tiered system, a corporation pays 8.25% on its first HK$2 million of assessable profits and 16.5% on the rest. The lower rate is available to only one entity in a group of connected entities. This applies from year of assessment 2018/19 onwards.