One-handed vacancy tax will be submitted to the legislature for discussion next month

One-handed vacancy tax will be submitted to the legislature for discussion next month.

The government introduced a vacant tax on the first floor last year. It is said that the government has roughly completed the drafting bill and is preparing to submit it to the Legislative Council for discussion next month. In recent months, some developers have adopted the form of internal transfer to resell new units in the existing building to their different contact companies, commonly known as “left handed right hand".

Under the Ordinance, the Ordinance provides that in the three cases, even if a residential property has entered into a provisional sale and purchase agreement or a sale and purchase agreement and an assignment has been made, the relevant sale and purchase agreement or sale and purchase agreement or transfer will be A contract or assignment that is considered to be disregarded, one of which is a temporary sale and purchase agreement or sale or purchase agreement or transfer between companies (including their own corporations).

In simple terms, the developer resells the unit to the contact company and is not considered to be a real change of hands.

At the same time, when the Government announced the buyer’s stamp duty (BSD) in the early years, it indicated that the developer would transfer the unit to the subsidiary and transfer the equity of the subsidiary to other non-linked legal entities or persons within two years from the date of the transfer. There is no exemption from stamp duty. If the company sells the property within three years, it will still be subject to additional stamp duty