Hong Kong IRD Warns Public About Fraudulent Stamp Duty Certificate Notices

The Inland Revenue Department (IRD) of Hong Kong has issued a public alert warning individuals and businesses about fraudulent notices purporting to be Stamp Duty Certificate communications issued by the Department. The alert, released on February 3, 2026, follows reports of scam notices demanding payment of a so-called “landed tax” within a short timeframe.

According to the IRD, these notices are entirely fraudulent and have no connection with the Department. Members of the public are reminded to remain vigilant when receiving tax-related communications, particularly those requesting urgent payment or using unfamiliar terminology.

This alert highlights the continued risk of tax-related fraud in Hong Kong’s highly digitalized administrative environment and underscores the importance of understanding how legitimate Stamp Duty processes operate.

Overview of the fraudulent Stamp Duty Certificate notices

The fraudulent notices identified by the IRD share several common characteristics. They are presented as official communications allegedly issued by the Department and typically state that the recipient is required to pay a “landed tax” within five working days. In some cases, payment is requested in RMB rather than HKD.

The notices may appear credible at first glance, as they often mimic the formatting, language style, or document structure used in legitimate government correspondence. This includes the use of official-sounding terminology, references to statutory obligations, and the appearance of urgency through short compliance deadlines.

Such notices may target property owners, investors, or companies involved in transactions that are commonly associated with Stamp Duty obligations, including property transfers or share transfers. By exploiting recipients’ partial familiarity with Stamp Duty requirements, scammers attempt to create pressure to make immediate payment without verification.

IRD’s official clarification and legal position

The IRD has made it clear that it has no connection with these fraudulent notices. The Department emphasized that Hong Kong’s Stamp Duty Ordinance does not impose any “landed tax”, and that no such tax exists under Hong Kong law.

The IRD further clarified that all Stamp Duty and other taxes payable in Hong Kong are denominated exclusively in Hong Kong dollars. Any request for payment in foreign currencies, including Renminbi, is therefore a strong indicator of fraud.

From a legal perspective, the issuance of fraudulent notices that falsely claim government authority may constitute serious criminal conduct. The IRD’s clarification reinforces the principle that tax obligations in Hong Kong are strictly governed by statute and administered through established procedures.

Understanding Stamp Duty in Hong Kong

Stamp Duty in Hong Kong is a transaction-based tax imposed on specified documents, rather than a general tax on land or assets. Under the Stamp Duty Ordinance, liability to stamp arises only where expressly provided for by law and is triggered by the execution of certain instruments, including documents relating to transfers of immovable property located in Hong Kong, transfers of Hong Kong stock, and certain lease or tenancy agreements.

The obligation to stamp generally falls on the parties to the transaction, such as buyers and sellers or landlords and tenants, depending on the nature of the document. Stamp duty must be paid within the prescribed statutory time limits, and late stamping may result in penalties. An unstamped document may also be inadmissible as evidence in civil proceedings until it has been duly stamped.

A Stamp Duty Certificate serves as formal evidence that stamp duty has been properly assessed and paid through official channels, including the Inland Revenue Department’s e-Stamping service. Legitimate stamp duty certificates are therefore issued only after completion of the prescribed assessment and payment process, and are not used as a mechanism to demand payment through unsolicited notices.

How legitimate Stamp Duty processes work

In practice, Stamp Duty in Hong Kong is assessed and paid through established procedures administered by the IRD. Taxpayers or their representatives submit the relevant instruments or transaction details for assessment, either electronically through the IRD’s e-Stamping system or through other prescribed channels.

Once the duty payable has been determined, payment is made using approved methods, including electronic payment platforms, bank transfers in Hong Kong dollars, or other officially accepted means. Upon successful payment, the IRD issues confirmation in the form of a stamp or certificate.

Official IRD communications relating to Stamp Duty are typically issued through recognized channels and do not involve unsolicited demands for immediate payment. They also do not impose unusually short deadlines designed to pressure recipients into acting without verification.

Red flags and common indicators of tax-related fraud

The IRD’s alert highlighted several warning signs that may indicate fraudulent tax communications. These include:

• Requests for payment in foreign currencies;
• References to unfamiliar or non-existent taxes; and
• Use of urgent deadlines that require action within a few days.

Other common indicators include payment instructions directing funds to non-government accounts, generic greetings that do not accurately identify the recipient, and inconsistencies in contact details or document formatting.

Recipients should also be cautious of notices that do not align with their actual transaction history or that reference obligations they do not recognize. Legitimate tax obligations are typically linked to clearly identifiable transactions and follow predictable administrative processes.

What to do if you receive a suspicious stamp duty notice

Individuals and businesses who receive suspicious notices claiming to be issued by the IRD are advised not to make immediate payment. Instead, they should verify the authenticity of the notice through official IRD channels, such as the Department’s website or public enquiry services.

Recipients should retain copies of the communication for reference and consider reporting suspected fraud to the relevant authorities. For companies, particularly those handling property transactions or share transfers, internal controls and verification procedures can help reduce the risk of staff responding to fraudulent demands.

Professional advisers, including legal and tax consultants, can also assist in confirming whether a notice reflects a genuine statutory obligation.

Broader implications for Hong Kong businesses and investors

Fraudulent tax notices pose broader risks beyond immediate financial loss. For businesses, such scams can expose weaknesses in internal controls, compliance procedures, and staff training. They may also create reputational risks if fraudulent payments are made or if regulatory obligations are misunderstood.

Cross-border elements, such as references to foreign currencies or unfamiliar terminology, may further complicate verification for foreign investors or overseas management teams. This underscores the importance of localized regulatory knowledge and professional support when operating in Hong Kong.

Key takeaway

The IRD’s warning regarding fraudulent Stamp Duty Certificate notices serves as a reminder that tax-related scams continue to evolve alongside digital administration. While Hong Kong’s Stamp Duty system is well-established and transparent, fraudulent communications may attempt to exploit partial familiarity with legitimate processes.

By understanding how Stamp Duty operates, recognizing common red flags, and verifying tax communications through official channels, individuals and businesses can reduce their exposure to fraud. As tax administration becomes increasingly digital, awareness and due diligence remain essential safeguards.

Drawing on Hong Kong’s position as a gateway to mainland China and the Asia-Pacific region, we support businesses with company setup, tax advisory, and holding company structuring. With over three decades of experience assisting foreign investors across Asia, we help clients establish and operate in Hong Kong with clarity and confidence. For further information or to arrange a consultation, please contact hongkong@dezshira.com.

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