The government has received a total of MOP208.2 million (US$26 million) from the Special Stamp Duty (SSD) since the implementation of the tax scheme in June of 2011 until the end of January, according to data revealed by the Financial Services Bureau (DSF) for the first time.
According to the official data, as at the end of January, a total of 498 property re-sales were subject to the SSD. Of the total, 348 were residential units, involving taxes of MOP157.53 million.
Meanwhile, the number of re-sales of shops, offices and parking spaces subject to the tax were 36, 9 and 105, involving MOP27.92 million, MOP4.46 million and MOP18.24 million, respectively.
In June 2011, the MSAR government imposed a Special Stamp Duty on property or property rights transactions, to be collected in the first two years after payment of the tax stamp on the document, paper or act evidencing such a transaction, in order to reign in speculation in the housing market. The scope was expanded in October 2012 to also include the re-sale of offices, shops and car parking spaces, but excluding industrial units.
The SSD is a levy of 20 per cent on the sale of a property if it is re-sold within a year of being purchased, or 10 per cent if it is re-sold within one and two years of being purchased.
SSD re-sales plunged since 2015
According to the official data, the total number of re-sales of properties subject to the SSD has plunged in the past two years, from its peak between 2013 and 2014.
For the whole year of 2016, a total of 63 re-sales of properties were subject to the SSD, involving nearly MOP24 million. And the numbers in 2015 were similar: the government received SSD of some MOP20.9 million from 62 property re-sales.
By comparison, in 2014, there were 167 property transactions subject to SSD, involving some MOP72.5 million, while the number in 2013 reached 137 transactions, involving tax amounting to some MOP57.13 million.
Additional stamp duty
Furthermore, the DSF also revealed for the first time that the government had received a total of MOP611.4 million from the additional stamp duty imposed on residential transactions as at the end of January (since the time of its implementation), involving a total of 963 units.
The additional stamp duty, effective from November 2011, is an additional 10 per cent levy on a property transaction if the buyer is an entity or a non-resident.
For the whole of 2016, a total of 208 home transactions were subject to the additional tax payment, which amounted to MOP129.2 million, compared to 184 transactions and related tax value of MOP76.2 million in 2015.