Q:
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What is stamp duty rate on sale or purchase of my company’s shares?
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A:
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When you transfer the shares of your company, the stamp duty will be charged at rate on the total value of your company or the par value of the shares, whichever is higher. The current rate for the stamp duty is set at 0.1% of the value on every sold note and every bought note.
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Q:
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How can I know my company’s value?
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A:
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The total value of your company would be the net assets of the company at the share transfer date.
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Q:
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How will the Inland Revenue Department (“IRD”) identify the total value of my company?
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A:
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To enable the Stamp Office to assess the proper amount of stamp duty payable, the following documents and information should be submitted together with the transfer documents:
1.
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The Articles of Association of the company of which shares are being transferred;
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2.
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A certified true copy of the Agreement for Sale and Purchase of the shares;
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3.
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A statement on whether your company has acquired any landed property and if so, with a completed schedule of the landed property;
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4.
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The latest audited accounts of the company;
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5.
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Certified management accounts of your company from the end date of the latest audited accounts made up to a date within 3 months before the date of transfer, if the audited accounts are not made up to a date within 6 months prior to the date of this transaction.
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Q:
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What is the time limit for stamping the above documents?
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A:
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The stamp duty is payable within 2 days after the sale or purchase if effected in Hong Kong or 30 days after the sale or purchases if effected elsewhere.
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Q:
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Is there any stamp duty relief regarding transfer of shares of a private Hong Kong company?
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A:
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Stamp duty relief is available for the case of transfers of shares within a group of companies, where one is beneficial owner of not less than 90% of the other, or both parties are under 90% (or more) common ownership.
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FAQ
