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Stamp duty

Stamp duty is a special state fee levied on individuals and organizations in processing documents on civil transactions. Collection of stamp duty is done through the sale of stamp forms for the documents or through the sale of special stamp marks. Stamp duty is paid either in a fixed sum to each type of document (a simple stamp duty) or, depending on the amount of the transaction specified in the document (proportional stamp duty). Sale or rental of real estate transactions, transactions on expropriation of rights on securities are subject to duty collection.
Why do we draw your attention to this kind of tax? Transfer of right of property of Hong Kong companies shares is not subject to state registration, and hence responsibility to register the shares is vested in the company itself. Once a year a company submits the  Annual Return to the Registrar, which contains, among other information, details of shareholders at the date of submitting the return. Details of the sale of shares that may have been sold during the year are not stated in this report, and, consequently, the information in the Registrar is not complete and may not reflect changes in the list of the shareholders. Therefore, the only proof for third parties of transfer of property rights for shares are relevant transfer documents, duly registered in Stamp Duty Office. The exercise of rights for shares, that is not registered, may be deemed illegal under civil or criminal proceedings.