Boon for owners of commercial property in Hong Kong as hefty stamp duty is abolished with immediate effect
- Double stamp duty introduced to curb speculation has hurt owners selling during downturn
- Hong Kong companies will get help to expand markets in Greater Bay Area, overseas and online
Hong Kong is easing the tax burden on owners of commercial property who sell their assets and will promote local enterprises in the Greater Bay Area and overseas, in efforts to help companies ride out the severe impact of the Covid-19 pandemic.
In her policy address on Wednesday, Chief Executive Carrie Lam Cheng Yuet-ngor announced the end of double stamp duty (DSD) for non-residential properties.
The move, approved by her Executive Council on Wednesday, takes effect on Thursday and is expected to help owners with cash-flow problems to sell their assets without worrying about the tax they would have to pay.
“As a result of the economic downturn and uncertainties surrounding the Covid-19 pandemic, prices and demand for non-residential properties have been dropping over a period of time. The government considers now [is] the right time to abolish the DSD imposed on non-residential properties,” Lam said.
The double stamp duty, introduced in February 2013 to cool an overheating market, subjected both buyers and sellers to a tax rate as high as 8.5 per cent for non-residential properties valued at more than HK$21.8 million.
Lam said abolishing the DSD would help owners who decide to sell their commercial properties to cope with financial difficulties caused by the economic downturn.
