Articles: Stamp Duty

CST (0985) sells 28 flats in Fortwest, Quarry Bay to Chu Chow Wai for HK$136.82m
Company announcement, 22-Jul-2021
Ms Chu is the wife of Cheung Chung Kiu. The flats are ultimately held by a BVI company which is being transferred, avoiding 15% Stamp Duty.
Webb on "Backchat" re the Budget
RTHK, 25-Feb-2021
Webb on "Backchat" re taxes and handouts
RTHK, 21-Jan-2020
Webb on "Backchat" re the HK property market, rates and taxes
RTHK, 13-Dec-2018
Future World (0572) completes 1 Lincoln Road acquisition and increases loan facility to CSPT (0139) to HK$270m
Company announcement, 25-Apr-2018
CSPT (0139) swaps 1 Lincoln Road for shares in FWF (0572)Future World announcement
Company announcement, 29-Dec-2017
FWF owns 9.21% of CSPT, just below the 10% threshold at which this would be a connected transaction. CSPT owns 8.48% of FWF which will increase to 21.46% on completion. Both are in what we call the "Chung Nam Network". The deal involves the transfer of the BVI company that owns the house, thereby avoiding a prohibitive 30% stamp duty on the $400m property.
HKSARG continues effort to reduce supply of residential rental units
HK Government, 11-Apr-2017
Yes, that's what they're doing, by insisting that unless you pay punitive stamp duty, you can only own 1 flat, which you will probably occupy, and meanwhile, if you are moving to HK, you can't own one for 7 years until you become a permanent resident, so you have to rent, if you can find an owner who doesn't occupy their flat.
Realord (1196) buys Cyberport house from co-founders of Moiselle (0130) for HK$225m
Company announcement, 10-Apr-2015
Actually it is buying the HK company which owns the property, so the stamp duty will be 0.2% rather than 15% Buyer's Stamp Duty and 8.5% Double Stamp Duty, a saving of 23.2%.
Webb on 'Backchat" re the proposed stamp duties
RTHK, 29-Nov-2013
The proposed laws on Buyer's Stamp Duty, higher rate and longer period of Seller's Stamp Duty, and Double Stamp Duty are still in LegCo Bills Committees. The show discusses whether they should be withdrawn.
Joseph Lau buys 3 Deep Water Bay Road from Chinese Estates (0127), avoids 19.25% stamp duty
Company announcement, 7-Nov-2011
He is actually buying a BVI subsidiary which owns the property. That company bought the property for HK$888.8m on 17-Aug-2011. If it had sold him the property, the transaction would have cost a punitive 15% Special Stamp Duty (for resale within 6 months) and 4.25% regular stamp duty, a total duty of 19.25% or HK$171m. By buying the BVI company, there is no duty payable.
Kowloon Development (0034) sells Johnny Or's home to Johnny Or
Company announcement, 11-May-2011
By selling the company, King's City Holdings Ltd, to Mr Or, rather than the property it owns, the transaction avoids 4.25% stamp duty on $141m, or $5.99m, or about 27 months' rent. Instead, the duty will be 0.2% on the company value (net of liabilities) of $93.124m, or duty of $186k. The company was the original developer of the building, and apart from the penthouse duplex it owns 17 car spaces.
HK's stamp duty addiction
We look at the HK Government's opium-like addiction to stamp duty revenues, which have more than quintupled in 7 years. The budget asks for another fix. Stamp duty is sand in the wheels of the economy, distorting economic decisions and reducing economic output. It should be abolished rather than increased further. Higher stamp duty does not improve property affordability. HK needs a root-and-branch review of taxation to refocus on fair taxation of GDP rather than one-off measures and distortive policies. (2-Mar-2010)

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