Frequency/market practice: It is common to share the stamp duty payable in Hong Kong, which has been reduced from 0.26% to 0.2% (with effect from 17 November 2023) of the greater of the purchase price and value (usually determined as NAV).
Is a separate tax covenant/indemnity or tax deed common?
Frequency/market practice: It is more common to have a tax indemnity included in the purchase agreement. Warranty insurance coverage is increasingly being used in private equity deals for tax related liabilities.
