Like Tree4Likes

HK TAX HRA QUERY

Reply
Page 2 of 2 FirstFirst 1 2
  1. #11

    Join Date
    Feb 2005
    Location
    Island East
    Posts
    4,377
    Quote Originally Posted by aisankit
    Do you have any idea about how much will be the late fee if I make agreement from Arpil 2018 to March 2020.
    How much is you rent per month?

  2. #12
    bdw
    bdw is offline

    Join Date
    Feb 2009
    Posts
    5,714

    The penalty if you are late by more than 2 months is normally 10 times the amount of stamp duty. So for example if your rental is $10k per month, 24 month contract, stamp duty is normally $600. So you would have to pay a penalty of $6000.

    However, you can beg for a reduced penalty and depending on your circumstances may or may not be granted. If you are lucky enough to get away with this, the reduced penalty is as follows:

    Reduced penalty = 14% x Stamp Duty Payable x No. of days delayed / 365 days

    If I understand this formula correctly, then the reduced penalty in above example would be only a few hundred dollars rather than $6000. But you will need to write a letter and grovel.

    https://www.gov.hk/en/residents/taxe...e_stamping.htm

    Last edited by bdw; 25-04-2019 at 12:11 PM.

Reply
Page 2 of 2 FirstFirst 1 2