Stamp Duty of a Lease (Rental Agreement)

When the Landlord and Tenants have prepared the Rental Agreements, the Agreements should be delivered to Government for a Rental Stamp Duty. It can be processed on Gov IRD Website as well.

The Rental Stamp Duty is as below:

Term		Rate
Not defined or is uncertain		0.25% x of the yearly or average yearly rent (Note 1)
Exceeds	Does not exceed
	1 year	0.25% x of the total rent payable over the term of the lease (Note 1)
1 year	3 years	0.5% x of the yearly or average yearly rent (Note 1)
3 years	.	1% x of the yearly or average yearly rent (Note 1)
Key money, construction fee etc. mentioned in the lease		4.25% of the consideration if rent is also payable under the lease. Otherwise, same duty as for a sale of immovable property
Duplicate or counterpart		$5 each

Moreover, After the Signed of the Lease Agreement, the Landlord should submit the CR109 to inform RVD Dept about the Lease Agreement.

http://www.rvd.gov.hk/tc/doc/forms/cr109c.pdf

Notes about the Lease Stamp Duty in Hong Kong:
Lease Stamp Duty can help to protect the Rights and Interests on Both Sides (Landlord and Tenants). It is the Recognised Proof about the Lease.
If there is argument about the Lease, the Stamped Lease will be used as a reference. If the Lease is not stamped, it may not be accepted legally.

The Lease should have 2 Copies and the Landlord and Tenants can Share the Fee of the Stamp Duty.

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