On 29 September 2026, the Government announced that the Stamp Duty (Amendment) (No. 3) Bill 2026 would be gazetted on 2 October 2026 to implement a 2026-27 Budget measure relaxing the criteria for stamp duty relief on intra-group asset transfers. This note summarises the official press release — general information only, not legal or tax advice.
Based on the Information Services Department / IRD press release. The Bill is still subject to Legislative Council scrutiny; final rules follow the enacted text. This article does not speculate on passage or rates beyond the press facts.
Current association test (press release summary)
Under the Stamp Duty Ordinance, stamp duty relief is available for transfers of immovable property or Hong Kong stock between associated bodies corporate. Currently, two bodies corporate are associated if:
- one owns 90% or above of the issued share capital of the other; or
- a third body corporate owns 90% or above of the issued share capital of each of them.
Two proposed relaxations
Per the press release, the Bill would relax the association criteria by:
- Lowering the ownership threshold from 90% to 75%.
- Broadening the interests counted — in addition to issued share capital, taking into account other direct or indirect beneficial interests or voting rights, so entities without issued share capital (for example limited liability partnerships and companies limited by guarantee) can also qualify for intra-group stamp duty relief.
A Government spokesperson noted that business expansion and restructuring frequently involve intra-group asset transfers; relaxing the association definition would enable more enterprises to benefit and further enhance Hong Kong’s tax competitiveness.
Instrument timing and legislative progress
- The Bill is scheduled for First Reading and commencement of the Second Reading debate in the Legislative Council on 14 October 2026 (confirm against the latest official notice).
- Subject to passage by the Legislative Council, it will apply to instruments executed on or after 25 February 2026.
- Final wording, commencement details and any later amendments follow the Gazette and the enacted Ordinance.
Practical tips for groups
- Groups planning — or that have already executed on or after 25 February 2026 — intra-group transfers of immovable property or Hong Kong stock should watch the possible move from a 90% to a 75% association threshold and eligibility for entities without share capital.
- Until enactment, continue to apply the current Stamp Duty Ordinance association concept (including the s.45 framework as applicable) and existing relief conditions; re-check the enacted text and instrument dates afterwards.
- Restructurings that involve LLPs or companies limited by guarantee should document shareholding, voting rights and beneficial interests early and seek professional advice.
Sources: IRD press release (2026-09-29) · Government press release (ZH) · 稅務局新聞稿（中文） · IRD Ordinances / Bills index