With effect from 1 July 2018, transferees (generally refer to purchasers) under conveyances on sale of immovable properties (both residential and non-residential) in Hong Kong are liable to pay a levy to the Property Management Services Authority (PMSA) within a prescribed period. The levies are used to support the daily operation of the PMSA.
The levy is collected in accordance with the PMSO and the Property Management Services (Levy) Regulation (Cap. 626A) under the PMSO. The Stamp Office of the Inland Revenue Department (IRD) will collect the levy on behalf of the PMSA together with the stamp duty when a conveyance on sale is submitted to the IRD for stamping.
Transferees under leviable instruments are liable to pay the levy within a prescribed period in accordance with the PMSO.
According to the PMSO, late payment or non-payment of levy are subject to a penalty, the amount of which ranges from 2 to 10 times of the original amount of the levy, depending on the length of delay. If there is more than one transferee under the instrument, they are all jointly and severally liable to pay the penalty.
The PMSA may recover the amount of any levy or penalty payable as a civil debt due to it in accordance with section 60 of the PMSO, or register a certificate of levy and penalty in the Land Registry in accordance with section 59 of the PMSO.
According to section 58(1)(b) of the PMSO, the amount of the penalty is: