Hong Kong proposes relaxing intra-group stamp duty relief for transfers of dutiable assets

This alert discusses the proposed enhancements to the intra-group stamp duty relief under section 45 of the Stamp Duty Ordinance.

• The threshold for the relief would be lowered from 90% to 75% by virtue of either (i) beneficial ownership interest or (ii) voting power; and the scope of eligible entities would cover bodies corporates that do not have issued share capital (such as limited liability partnerships and certain limited liability corporations), provided that they have a separate legal personality.
  
  
• As a transitional arrangement, pending legislation to be introduced in October 2026, these proposals will apply retrospectively to instruments for the transfer of Hong Kong stock or property signed on or after 25 February 2026. Instruments qualifying for the relief under these proposals may be submitted to the Stamp Office for adjudication, i.e., without the need to pay the stamp duty upfront and then apply for a refund later. The adjudication will be processed once the proposed legislation is enacted.

Clients with questions about the proposed enhancements or the transitional arrangement should contact their tax executive.