After signing a tenancy agreement and paying the deposit and advance rent, there is another task to remember: paying tenancy stamp duty and completing the stamping process.
This guide explains the calculations, deadline and application methods for ordinary private residential tenancy agreements.
1. When must a tenancy agreement be stamped?
A tenancy agreement must be stamped within 30 days after signing. The deadline runs from the signing date, rather than the date you move in or start paying rent.
If you sign before handover, arrange stamping according to the signing date. Stamping confirms that stamp duty has been paid; it does not mean the Inland Revenue Department has certified the agreement's contents. IRD tenancy stamp duty FAQs
2. How is tenancy stamp duty calculated?
For an ordinary tenancy agreement without a premium, duty is based on the term and rent:
Tenancy termCalculationNot exceeding 1 yearTotal rent payable over the term × 0.25%Exceeding 1 year but not exceeding 3 yearsAnnual or average annual rent × 0.5%Exceeding 3 yearsAnnual or average annual rent × 1%Undefined or uncertain termAnnual or average annual rent × 0.25%
Round the rental calculation base up to the nearest HK$100. Any fractional dollar in the calculated duty is rounded up to the next whole dollar. The rental deposit stated in the agreement is excluded from the calculation. Government stamp duty rate table
Example: HK$15,000 monthly rent for two years
Assume the rent remains unchanged, there is no rent-free period, and one original and one counterpart are signed:
- Annual rent: HK$15,000 × 12 = HK$180,000.
- Stamp duty: HK$180,000 × 0.5% = HK$900.
- Including HK$5 duty for one counterpart, the total is HK$905.
For a two-year agreement, use annual rent rather than multiplying the full two years' rent by 0.5%. If there is a rent-free period or rent changes during the term, calculate average annual rent from the total rent payable over the full term. IRD tenancy stamping guidance
3. Does a break clause reduce the term used for stamp duty?
If the agreement specifies a two-year term, it is treated as a two-year tenancy for stamp duty even if a break clause allows early termination after one year.
A rent-free period also counts towards the tenancy term. Check the full start and end dates rather than using only the months in which rent is payable to determine the rate. IRD guidance on tenancy terms
4. How do you stamp a tenancy agreement online?
Ordinary agreements that meet the e-Stamping requirements can be processed online:
- Prepare the signed agreement and check the signing date, term, rent, property address and landlord and tenant details.
- Open the government e-Stamping service, verify your identity and select the tenancy agreement stamping application.
- Enter the agreement details. For rent-free periods or changing rents, report the total rent payable over the full term.
- Declare any signed counterpart in the same application.
- After paying the duty, download and print the stamp certificates and attach them to the corresponding documents.
Online applications generally do not require submission of the original agreement. If an original and a counterpart have been signed, submit one application and declare the counterpart; separate certificates will be issued. IRD e-Stamping guidance, tenancy application FAQs
5. Can you apply by post or in person?
Yes. Postal applications use form IRSD111(C). Submit the details and payment as instructed; the original agreement does not need to be enclosed.
You can also apply at the Stamp Office, 1/F, Inland Revenue Centre, 5 Concorde Road, Kai Tak, Kowloon. You may book a tenancy counter appointment before visiting. IRD application methods
6. Does the landlord or tenant pay?
The parties executing the agreement are responsible for paying stamp duty, but how the cost is shared is for them to agree. An equal split is not automatically required.
At signing, agree who will submit the application, how the cost will be shared and how both parties will receive the stamp certificates. IRD guidance on payment responsibility
7. What if you miss the deadline?
You still need to complete stamping and may have to pay a penalty. Depending on the delay, statutory penalties are two, four or ten times the stamp duty. You can apply for remission, but approval depends on the individual case. Government late stamping guidance
Once completed, keep the agreement, stamp certificates and payment records together for future reference.
Pay your deposit and advance rent by credit card
When signing a tenancy agreement, you need to prepare the deposit and advance rent alongside the stamp duty payment. You can pay the deposit and advance rent by credit card through RentSmart, giving you the opportunity to earn credit card cashback or miles on your upfront rental expenses.
