Hong Kong proposes wider intra-group stamp duty relief: ownership threshold to fall from 90% to 75%
Hong Kong proposes to lower the ownership threshold for intra-group stamp duty relief from 90% to 75% and widen association criteria. Review the proposal and pending legislative timetable.
On 29 September 2026, the Government announced that the Stamp Duty (Amendment) (No. 3) Bill 2026 would be gazetted on 2 October. It implements a proposal in the 2026–27 Budget to relax the criteria for stamp duty relief on intra-group asset transfers. As at 30 September, this remains a legislative proposal, not an effective new arrangement.
What would change? The Stamp Duty Ordinance provides relief for transfers of immovable property or Hong Kong stock between associated bodies corporate. According to the announcement, the current test requires one body corporate to own at least 90% of the issued share capital of the other, or a third body corporate to own at least 90% of each.
The Bill would lower the ownership threshold to 75% and take account of other direct or indirect beneficial interests or voting rights, in addition to issued share capital, when determining association. The 90% and 75% figures are ownership thresholds, not stamp duty rates.
Why does this matter to businesses? The Government explains that certain enterprises, including limited liability partnerships and companies limited by guarantee, do not issue shares. Ownership may instead be exercised through beneficial interests such as equity interests or participation interests. The proposal seeks to enable these enterprises to benefit from intra-group asset transfer relief as well.
Groups considering expansion or restructuring involving transfers of immovable property or Hong Kong stock should monitor this development. Meeting a 75% ownership level would not mean that every transaction automatically qualifies: applicability would still require professional assessment against the final legislation and transaction facts.
Legislative timetable and proposed application The Bill is scheduled for first reading and commencement of the second reading debate in the Legislative Council on 14 October. Subject to passage by the Legislative Council, the Government says it would apply to instruments executed on or after 25 February 2026. This is a proposed application provision conditional on passage, not confirmation that relief under the new threshold is already available.
Businesses should follow the published Bill, legislative progress and subsequent implementation arrangements. Obtain professional advice for specific transactions rather than treating this news summary as an eligibility decision or application guide.
Source: Inland Revenue Department, 29 September 2026. Information checked as at 30 September 2026.
Disclaimer: This article provides general information only and is not tax, accounting or legal advice.