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Can you backdate a lease?

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  1. #1

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    Can you backdate a lease?

    We overlooked our lease renewal by 8 weeks. We’ve now agreed terms with the landlord, ideally we want to backdate it so there’s no gap, so we don’t lose two months of tax benefit.

    From what I’ve read in the IRS guidance, the stamp duty has to be paid within 30 days of execution of the lease, but it says the commencement date of the lease isn’t relevant. Would others interpret this the same way as me - I.e. that we can backdate the new lease, as long as it’s dated the day we actually sign it, and stamp duty is paid within 30 days of that date?

    https://www.ird.gov.hk/eng/pdf/irsd119.pdf


  2. #2

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    It’s fine, I’ve done this. Just be prepared to heavily apologise when you go to get the stamp duty. They’ll give you a small fine and ask you to sign something and write a reason it was late. I was really worried but given there’s a signed TA and rent has been paid, it’s just a formality


  3. #3

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    Quote Originally Posted by misshappy26:
    It’s fine, I’ve done this. Just be prepared to heavily apologise when you go to get the stamp duty. They’ll give you a small fine and ask you to sign something and write a reason it was late. I was really worried but given there’s a signed TA and rent has been paid, it’s just a formality
    That’s if you pay late though which I know is possible for an additional cost - I.e. more than 30 days after signing the lease. My interpretation of the document I shared is that we wouldn’t be late if we paid immediately after signing, even if the start date of the lease is say 2 months’ earlier.

  4. #4

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    You can backdate the agreement and have it signed yesterday without penalty.

    However, If you backdate and have the agreement signed two months ago then a penalty is due.


  5. #5

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    Quote Originally Posted by ArrynField:
    You can backdate the agreement and have it signed yesterday without penalty.

    However, If you backdate and have the agreement signed two months ago then a penalty is due.
    Thanks, this is what I hoped and is the genuine situation.

  6. #6

    FYI there's also a form for applying to get the late penalty waived: www.ird.gov.hk/eng/pdf/irsd127.pdf

    Haven't done it myself but guess you pay the late fee first and then see if you can get the money back.


  7. #7

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    Quote Originally Posted by chris_in_hk:
    FYI there's also a form for applying to get the late penalty waived: www.ird.gov.hk/eng/pdf/irsd127.pdf

    Haven't done it myself but guess you pay the late fee first and then see if you can get the money back.
    Thanks. I'm hoping this won't be considered late though, as the lease is only being signed now.

  8. #8

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    i would say as long as you sign it 'now' and don't backdate the signing, just have it in paper that your lease started N months ago, technically the stamp duty paid should not be 'late'..

    what can happen is whether your company will recognize this as covering the full tenor of what you intend to cover and subsequently will they submit to IRD as a full lease covering the period you intend it to do.. This will really be dependent on each company and the auditor...


  9. #9

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    Quote Originally Posted by freeier:
    i would say as long as you sign it 'now' and don't backdate the signing, just have it in paper that your lease started N months ago, technically the stamp duty paid should not be 'late'..

    what can happen is whether your company will recognize this as covering the full tenor of what you intend to cover and subsequently will they submit to IRD as a full lease covering the period you intend it to do.. This will really be dependent on each company and the auditor...
    If it can be stamped without a late fee, I'll argue quite strongly with them that they should. Fingers crossed!

  10. #10

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    Quote Originally Posted by Beanieskis:
    If it can be stamped without a late fee, I'll argue quite strongly with them that they should. Fingers crossed!
    remember, its you against some staunch and steadfast HR zealots following strictly by their rulebooks... good luck, i think you need them. ahhaa...

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