Stamp duty is a tax on certain written documents attesting to transactions. Parties to a rental document are required to pay stamp duty on the document in Schedule 1 of the Stamp Duty Regulation (Chapter 117 of Hong Kong Laws). The rate of stamp duty varies depending on the duration/duration of the lease. The current rates are as follows. If it is a lease, it should be registered with the land registry within 30 days of the date of execution, otherwise it will lose its importance under the Land Registry Regulation (Cap.128 of Hong Kong Laws). Therefore, a document creating a lease contract longer than 3 years (i.e. a lease agreement) would have to be registered, otherwise it would tend to be defeated by the landlord`s rightful rights holders and would lose its priority over other registered documents relating to the same property. Although a rent certificate may be registered in the land registry, Article 3, paragraph 2 of the Land Registry Regulation provides that the principles of termination and priority do not apply to „bona fide-leasing ratios for a maximum tenancy period of 3 years.” The landlord of a national property must submit to the Commissioner of Rating and Evaluation, within one month of the execution of the rental document, a notification of a new lease (form CR109) for approval. A landlord does not have the right to maintain rent recovery action under a rental document (if the tenant does not pay the rent) if the Commissioner does not approve The CR109 form. However, an owner who does not submit the form within one month may do so later after paying a $310 fee. For the stamp of each piece of the rental document, you have to pay 5 USD.
Stamp duty levied on a rental document and its equivalent depends on the rent to be paid or the annual or average annual rent. A rent-free period therefore reduces the basis on which stamp duty is calculated. The following examples illustrate the impact of free time on stamp duty payable. However, if a lease agreement includes an option to renew the existing lease, it must be registered, even if the lease term does not exceed 3 years. An extension option gives the tenant the right to continue to rent the property after the current term expires, i.e. to renew the existing tenancy agreement. Since this extension option is of legal interest to the land and violates the principles of termination and priority, the corresponding lease agreement should be registered. The laws governing the registration of documents in the national register are mainly contained in the land regulation (cap.128 of Hong Kong laws). Strictly speaking, there is no provision in the Cadastre regulation requiring the registration of documents. Only the consequences of non-registration are exposed.
The question should therefore be: why should certain rental documents be registered in the land registry? On the other hand, a document is a lease agreement for a term of 3 years or less (i.e.