Wilson Chow and Josiah Chung Ming Chan
Hong Kong Law Journal, Vol. 55, Part 1 of 2025, pp.127 - 152
Abstract: Apart from the schedular income taxes imposed under the Inland Revenue Ordinance (Cap 112), stamp duty stands out as the only other major type of tax levied in Hong Kong. Although the current Stamp Duty Ordinance (Cap 117) (SDO) was enacted in 1981, stamp duty is indeed the oldest of the taxes administered by the Inland Revenue Department. It holds significant importance in terms of fiscal revenue generation. Initially and largely modelled on the Stamp Act 1891 (UK), the SDO was less complicated until recent extensive revisions since 2010, particularly concerning real estate transactions in Hong Kong. This article examines the evolution of stamp duty in Hong Kong, focusing on its application to real estate transactions, starting from the inception of the SDO to date. The history of land-related stamp duty has seen changes in the stages of transactions subject to duty and the duty rates, as well as the introduction of new stamp duty categories. “One step forward, one step sideways and one step back” is arguably an apt description of those changes. It also raises the question of how far those changes have effectively achieved their intended goals in the wider context of regulating housing affordability in the real estate market. In the wake of recent social unrest in Hong Kong and the impact of the COVID-19, there is a call for the government to explore outside the box for fresh approaches and perspectives to address current challenges.
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