Hong Kong Proposes Relaxation of Stamp Duty Relief Conditions for Intra-Group Transfers

In the 2026/27 Budget Speech delivered on 25 February 2026, the Financial Secretary of the Hong Kong Special Administrative Region, Mr. Paul Chan Mo-po, proposed broadening the scope of eligible associated bodies corporate for intra-group stamp duty relief. This involves relaxing the qualifying criteria under section 45 of the Stamp Duty Ordinance (Cap. 117) for intra-group transfers of immovable properties in Hong Kong or Hong Kong stocks (“intra-group relief”).

Subject to the enactment of the relevant amendment ordinance, if a body corporate has at least 75% of direct or indirect beneficial interest in another body corporate; or a body corporate is entitled to exercise, or control the exercise of, at least 75% of the voting rights in another body corporate, the body corporate will be deemed as having an associating interest in the other body corporate.  The beneficial interest is determined based on the percentage of the issued share capital of the other body corporate held by the body corporate, or the body corporate’s ownership interest in the other body corporate.  

The enhanced intra-group relief will apply to relevant instruments executed on or after 25 February 2026. Prior to the enactment of the amendment ordinance, duty payers may submit adjudication requests to the Stamp Office for instruments involving transfers that meet the enhanced relief conditions. The Stamp Office will decide on approval after the legislation comes into effect. In such cases, duty payers are not required to pay the stamp duty first and then apply for a refund.

Kaizen suggests you consult the professional advice of tax advisors before taking actions.

Should you have any questions in relation to the proposals, please feel free to contact our CTAs in Hong Kong.