The introduction of the Bill aims to implement a measure to trawl for talents as announced in the 2022 Policy Address by introducing a refund mechanism (Proposed Refund Mechanism) under the Buyer's Stamp Duty (BSD) and New Residential Stamp Duty (NRSD) regimes for non-Hong Kong permanent residents (non-HKPRs) who have entered Hong Kong under designated talent admission schemes, purchased a residential property in Hong Kong on or after October 19, 2022, and subsequently become Hong Kong permanent residents (HKPRs).
A Government spokesman stated that under the Proposed Refund Mechanism, for an eligible incoming talent who acquired a residential property in Hong Kong on or after October 19, 2022, and has subsequently become an HKPR, he/she can apply for a refund of the BSD and the NRSD paid for the residential property which, at the time it was purchased, was his/her only residential property (save for replacing property) and he/she still holds on the date of the application for refund. The Ad Valorem Stamp Duty at Scale 2 rates (i.e. the rates applicable to first-time home buyers who are HKPRs) will still be payable such that the overall stamp duty charged will be on par with that charged on first-time home buyers who are HKPRs. The Inland Revenue Department will start accepting refund applications after the approval and gazettal of the new legislation.
"The Proposed Refund Mechanism can attract incoming talents to stay in Hong Kong for long-term development by substantially reducing their cost of property purchase, as talents who have a residential property in Hong Kong would have a higher propensity of staying here for good," the spokesman said.
The Bill will be introduced into the Legislative Council on April 19 for First Reading and Second Reading debate.
Source: Ird.gov.hk