In 2022, the price and volume of the property market in Hong Kong will drop, and the stamp duty income of "spicy tricks" will also drop accordingly.
According to the latest announcement from the Inland Revenue Department, a total of 2,979 cases of the three major spicy taxes (SSD, Buyer’s Stamp Duty, and Double Ad Valorem Stamp Duty DSD) were recorded last year, a sharp drop of 42% from 5,117 cases in 2021; the amount involved was 59.47 100 million yuan, a year-on-year decrease of 54%, both hitting new lows since records began in 2014.
If we divide the three "spicy taxation" of residential properties, reflecting the cases of buyers' stamp duty (BSD) for mainland customers and companies entering the market in the name of companies, there will be a total of about 638 cases in 2022, involving a total investment of 1.711 billion yuan, a year-on-year decrease of 36% and 49%, the same as a record low since 2014.
In 2022, 221 cases of Additional Stamp Duty (SSD), which reflect short-term speculation, were recorded, involving RMB 156 million, a year-on-year decrease of 43% and 40% respectively, hitting a new low since 2011.
As for the new ad valorem stamp duties (DSD & AVD) involving residential properties, 2,113 cases will be recorded in 2022, a decrease of nearly 44% from 3,749 cases in 2021.
The amount involved reached MOP 4.078 billion, a year-on-year decrease of 56%.
BSD spicy tax increased by 1.32 times in December
As for the hot tax collection data for December alone, there were 35 BSD cases recorded in that month, a month-on-month decrease of 39%; the investment involved was 222 million yuan, a month-on-month increase of 1.32 times; there were 6 SSD cases, involving a total investment of 4.2 million yuan , fell 70% and 66% month-on-month.
In December, there were 104 DSD & AVD cases involving RMB 331 million, a decrease of 33.7% and an increase of 62.9% month-on-month.
