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Q:
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How are the AVD rates in Hong Kong categorized?
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A:
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AVD rates are divided into Scale 1 and Scale 2. Scale 1 AVD rates are divided into Part 1 and Part 2.
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Q:
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Who will be liable to pay AVD?
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A:
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In general, the buyer, the seller, and any person who used the instrument will be jointly and severally liable to pay AVD.
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Q:
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Under what circumstances is the buyer the only liable person to pay the AVD?
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A:
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Only the buyer will be liable for the difference of AVD computed at Scale 1, Part 1 or Part 2 (as appropriate) and Scale 2, if AVD has been charged at Scale 2 on an instrument based on the buyer’s declaration that he/she is a Hong Kong permanent resident and is not beneficial owner of any other residential property in Hong Kong on the date of acquisition of the subject property and it was subsequently found that the declaration of the buyer is not correct.
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Q:
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Will the AVD paid be refunded if the agreement for sale has been canceled after the AVD has been paid?
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A:
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Yes, the party who paid the AVD can apply for refund of the duty paid within 2 years after the agreement is cancelled, revoked, rescinded or not performed.
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Q:
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I, as a Hong Kong permanent resident, do not own any residential property in Hong Kong. I entered into several Agreements for Sale and Purchase (ASP) to acquire several residential properties on the same day. Which ASP will be chargeable at Scale 2 and which will be chargeable at Scale 1?
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A:
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If you are acting on your own behalf in acquiring the properties, the ASP will be charged with AVD at Scale 2 according to the first execution at a point in time on that day, whereas all the other ASPs will be charged at Scale 1.
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FAQ
