Refund, Adjudication & Appeal against Assessment

Refund of Stamp Duty

Refund of a stamp used for or a stamp certificate issued in respect of an executed instrument may be allowed, if

• the instrument is afterwards found to be absolutely void from the beginning or unfit for the purpose intended, or

• the stamp is of a greater value than necessary or is inadvertently used for an instrument not chargeable with stamp duty.

An application for refund should be made within 2 years after the date of the instrument accompanying by the Form IRSD25. For a conventional stamp case, the original instrument containing the stamp should be attached to the application.

In addition to the above situations, if an agreement for sale of residential property is cancelled, otherwise than by reason of a re-sale or disposal of the property by the purchaser, it may not be chargeable to stamp duty. Stamp duty paid in respect of such an agreement may be refunded upon an application made to the Collector of Stamp Revenue within 2 years after the cancellation of the agreement by completing Form IRSD125.

Adjudication

Subject to the payment of an adjudication fee (currently $50), any person may request the Collector of Stamp Revenue (the Collector) to express his opinion on whether an executed instrument is chargeable with stamp duty and the amount payable.

An instrument specifically provided for under the following sections of the Stamp Duty Ordinance (Cap. 117) is however exempted from the payment of adjudication fee:

• Section 24(2) [conveyance or contract notes in consideration of debt]
• Section 27(3) or 29F(2) [instruments operating as gifts]
• Section 29H(3) or 45(3)(instruments qualifying for intra group relief)
• Section 44(3) (instruments effecting a gift to exempted institution)
• Note 4 to head 1(1) and Note 3 to head 2(3) in the First Schedule (foreclosure order)

Request for adjudication should be submitted at Stamp Office Counter together with the original instrument and relevant supporting documents. Electronic submission is not applicable.

For the adjudication of agreements or assignments of landed properties, please refer to the following link.

Appeal Against Stamp Duty Assessment

Any person who is dissatisfied with the assessment of the Collector may appeal to the District Court. The appeal should be made within 1 month from the date of assessment by notice served on the Registrar of the District Court. The stamp duty assessed has to be paid before an appeal can be made unless the Collector has agreed to postpone the payment of the whole or part of the stamp duty (in which case the amount not postponed has to be paid) or the Court orders otherwise.

Application for postponing the payment of stamp duty assessed has to be made by the intended appellant in writing to the Collector within 14 days from the date of the assessment. In the application, the appellant should indicate his intention to lodge an appeal and submit sufficient securities (normally in the form of a bank guarantee) in support of his request.

In the case where the appellant is prevented by illness or absence from Hong Kong or other reasonable causes from lodging an appeal within 1 month, the Court may extend the appeal period.

After hearing the appeal, the Court will determine the proper amount of stamp duty, if any, chargeable on the instrument. Any stamp duty overpaid will be refunded.

For further details, please refer to the following link.