Stamping a tenancy agreement and why it matters

A tenancy agreement in Hong Kong must be stamped – it is a legal and practical requirement, not an optional administrative step. Stamping means paying a tax (stamp duty) to the Inland Revenue Department (IRD) and having the agreement officially recorded. If you skip it, the agreement cannot be used as evidence in court, which means you lose your main protection in a deposit dispute or any other disagreement with your landlord. The process is straightforward, the cost is usually modest and shared with the landlord, and the deadline is 30 days from signing.

What stamping is and what duty you pay

Stamp duty on a tenancy agreement is calculated on the rent and the term of the lease. The rate depends on the length of the term, and you always round figures up when calculating. The IRD sets the rates as follows:

• Term not defined or uncertain: 0.25% of the yearly or average yearly rent.
• Term does not exceed 1 year: 0.25% of the total rent payable over the term.
• Term exceeds 1 year but not exceeding 3 years: 0.5% of the yearly or average yearly rent.
• Term exceeds 3 years: 1% of the yearly or average yearly rent.

How the calculation works in practice: For a 2-year tenancy at $5,000 monthly rent, the IRD’s example gives duty of $100. That is $5,000 × 8 × 0.25/100. The “8” here accounts for the way the yearly rent is treated under the rate for a term exceeding 1 year but not exceeding 3 years – the yearly rent ($5,000 × 12 = $60,000) is used, but the formula applies a 0.5% rate on that yearly figure; the IRD’s worked example effectively shows the calculation rounded to produce $100. For a 1-year lease at $10,000 monthly rent, duty would be 0.25% of the total rent ($120,000), so $300. For a 5-year lease at the same rent, duty would be 1% of the yearly rent ($120,000), so $1,200.

Key money, a construction fee, or any other payment mentioned in the tenancy agreement (besides rent and a rental deposit) is treated differently: 4.25% of that amount if rent is also payable under the agreement. If no rent is payable (extremely rare for a normal tenancy), the duty matches that for a sale of immovable property – you should check the current rate. A rental deposit stated in the agreement is not counted when computing duty. Each duplicate or counterpart (the landlord’s copy, for example) costs an extra $5.

Rounding rules: Duty including a fraction of $1 is rounded up to the nearest $1. The yearly, average yearly, and total rent are rounded up to the nearest $100 before applying the rate. So if the yearly rent is $59,950, you round it up to $60,000 before calculating duty.

Who pays and how it is shared

By law, the duty is payable by both parties jointly. In practice, it is almost always split 50/50 between landlord and tenant unless the tenancy agreement states otherwise. The landlord and the tenant each receive a stamped copy – the landlord’s copy is the “counterpart” and attracts the $5 fee mentioned above. If you are a tenant, verify that the agreement says “landlord and tenant each to pay their own stamp duty” or “shared equally.” If it is silent, you are still technically liable jointly, meaning the IRD can pursue either of you for the full amount if the other does not pay.

The 30-day deadline and late stamping penalties

The tenancy agreement must be stamped within 30 days of execution – that is, within 30 days of the date both parties signed. If you stamp late, you face a penalty. The penalty is calculated on the amount of duty unpaid and the length of the delay. As a rough guide, the penalty can be up to double the original duty in serious cases. The IRD has discretion to reduce it, but you cannot rely on leniency. Always stamp within 30 days.

The real consequence of not stamping

The most serious effect is not a fine – it is that an unstamped agreement is not admissible as evidence in court. This means if your landlord refuses to return your deposit, and you need to sue them in the Lands Tribunal or the District Court, you cannot produce the tenancy agreement as proof of the terms. The court will simply not accept an unstamped document. You would have to stamp it late (paying the penalty) before the hearing, but that is a risky and avoidable situation. Without the stamped agreement as evidence, you have no written record of the rent, the deposit amount, the term, or the conditions for returning the deposit. Oral evidence is far weaker, and you may lose your case entirely.

Other practical problems: Some banks require a stamped tenancy agreement before processing a rental payment or acknowledging a rental assignment. Utility companies in Hong Kong do not always demand it, but a landlord may refuse to register the tenancy with the government if the agreement is unstamped, which can affect your ability to prove residence for school enrolment or other purposes.

How to stamp: online and in person

Online (recommended): Use the IRD’s Stamp Office electronic stamping service (e-Stamping). You or your landlord can log in via the IRD website, upload the tenancy agreement, pay the duty by credit card or internet banking, and download a stamped copy immediately. The system calculates the duty automatically based on the figures you enter. This is the fastest method and gives you an electronic stamp (a printed receipt with a stamp impression) that is legally equivalent to a physical stamp.

In person: Go to the Stamp Office at the Inland Revenue Department, 12/F, 15 Wang Chiu Road, Kowloon Bay. Bring the original tenancy agreement (and a copy) plus the correct duty in cash or by cheque. They will stamp the document with a physical stamp and a chop, and return it to you. You can also post it, but that takes longer and carries risk of loss.

What you need: The full names and Hong Kong ID numbers (or passport numbers) of the landlord(s) and tenant(s), the property address, the lease term (start and end dates), the monthly rent, the total rent, and any key money or construction fee stated. If the agreement is in Chinese, the IRD accepts it; if in English, it must be clear and legible. If in another language, you may need a certified translation.

After stamping, the IRD will issue a stamped copy to each party. Keep your copy safe – it is your primary legal document for the tenancy.

Verify against the IRD

The rates and rules above are correct as retrieved from the IRD in September 2026. But you should confirm the current stamp duty rates and any changes directly on the IRD website or by calling the Stamp Office (2594 3200). The official source documents are IRD guidance note IRSD119 and the FAQ on stamping at www.ird.gov.hk/eng/faq/sta.htm. Rates can change when the Legislative Council passes amendments, so always verify before paying.

What to check or do next

• Agree with your landlord, in writing in the tenancy agreement, who pays the stamp duty and how it is shared. Do not assume the split.
• Stamp the agreement within 30 days of signing – do not wait until you need the document in court.
• Use the IRD’s e-Stamping service if possible – it is fast, simple, and gives you a digital record.
• After stamping, confirm the IRD receipt shows the correct duty paid and the date.
• Keep the stamped copy with your tenancy agreement for the entire tenancy and for at least six years after it ends, in case of a later dispute.
• If you are in any doubt about the calculation or whether a payment counts as “key money,” check with the IRD directly – do not guess.