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SQESalespersons Qualifying Examination✓EAQEEstate Agents Qualifying ExaminationWhich of the following statements about ad valorem stamp duty (AVD) on a residential sale are correct, as at October 2026? (i) AVD is calculated on the stated consideration or the value of the property, whichever is higher. (ii) The duty is rounded up to the nearest HK$1. (iii) A provisional agreement for sale and purchase is a chargeable agreement for sale for stamp duty purposes. (iv) A permanent resident buying a first home pays lower AVD rates than a buyer who already owns a flat.
Answer: (i), (ii) and (iii) only. (i) True. AVD is charged on the consideration or the value, whichever is higher. (ii) True. Duty is rounded up to the nearest dollar, and the exact consideration or value is used. (iii) True. The IRD treats a PASP as a chargeable agreement for sale. (iv) False. Since 28 Feb 2024, Part 1 of Scale 1 has carried the same rates as Scale 2, so a first-time permanent-resident buyer and an existing owner pay the same AVD rates. Rule: Residential AVD for instruments executed on or after 26 Feb 2026 uses one table (Scale 2 or Part 1 of Scale 1, identical rates) applied to the higher of consideration and value. Source: Stamp Duty Ordinance (Cap. 117); IRD Stamp Duty Rates Table IRSD123 (5/2026); IRD FAQ on Ad valorem stamp duty, Q1 and Q10 (ird.gov.hk), checked 11 Oct 2026; as at Oct 2026
Still thinking existing owners pay a higher AVD scale than first-time permanent-resident buyers.
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