The Agreement Was Signed on July 1, but Stamping Happened on August 10 — Is There a Penalty?
Yes. There is likely a penalty for late stamping, but you may apply for remission of penalty in certain cases.
In Hong Kong, an agreement for sale of immovable property must be stamped within 30 days after execution. (Exception: If a formal agreement is executed within 14 days from the provisional agreement, the time for stamping the formal agreement is within 30 days after the formal agreement is executed.)
Not sure how much stamp duty is payable? Take a look at our blog on stamp duty for non-residential properties.
Penalty for Late Stamping
- Delays not exceeding one month: 2 times the amount of stamp duty
- Delays exceeding one month but not exceeding two months: 4 times the amount of stamp duty
- Any other case: 10 times the amount of stamp duty
Can I Apply for Remission of Penalty?
The penalty may be remitted partly or wholly by the collector, depending on the special circumstances of a case. If the late stamping is voluntarily disclosed and the delay is not deliberate, the Collector will normally adopt the following formula in calculating the reduced penalty, subject to a minimum sum of $500:
Reduced penalty = 14% x Stamp Duty Payable x No. of days delayed / 365 days
You can write to request for remission of penalty with explanations of the delay and supporting evidence using this form. With the introduction of the 24-hour e-Stamping service and the acceptance of the stamping applications without presenting the original instruments, the inability to present the original instrument can no longer be a valid excuse.
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