Comprehensive Double Taxation Agreement Hk

The following information provides brief details on some important double taxation treaties signed by the Hong Kong Special Administrative Area. The agreement was also the first Hong Kong DBA to be signed using the Organisation for Economic Co-operation and Development standard for the exchange of tax information. Due to the international nature of their operations, air service companies in China (such as passenger airlines, air cargo, etc.) may be more vulnerable to double taxation. Bilateral air services agreements have been concluded because they need to be negotiated and concluded much more quickly than double taxation treaties. Hong Kong has concluded bilateral air services agreements with Bangladesh, Belgium, Canada, Croatia, Denmark, Estonia, Ethiopia, Fiji, Finland, Germany, Iceland, Israel, Jordan, Kenya, Kuwait, Laos, Macao SAR, mainland China, Maldives, Mauritius, Mexico, Netherlands, New Zealand, Norway, Russian Federation, Seychelles, South Korea, Sweden, Switzerland and the United Kingdom. Under the agreement, profits transferred from a Thai branch to its headquarters in Hong Kong are exempt from the 10% withholding tax in Thailand. Regarding the new agreement, Donald Tsang announced that there are tax information exchange agreements to promote international cooperation in tax matters and fight against tax evasion. Many of Hong Kong`s double taxation treaties contain provisions on the exchange of information. Hong Kong has also signed a series of stand-alone agreements on the exchange of tax information. They generally contain the following provisions: Article 151 of the Basic Law provides that Hong Kong is free to negotiate its own double taxation treaties independently of mainland China (i.e.dem rest of the People`s Republic of China) using Hong Kong`s abbreviation, China.

The region should not use double taxation treaties that China might enter into, as these agreements only mention continental taxes. Mainland China will also not impose the conditions of double taxation treaties in the territory, since it guaranteed Hong Kong, in accordance with Articles 106 to 108 of the Basic Law, the right to maintain an independent tax regime without continental interference until 2047. Shipping companies are at particularly high risk of double taxation. Hong Kong legislation provides for a mutual tax exemption for shipping gains. Hong Kong has maritime agreements with Denmark, Germany, the Netherlands, Norway, the United Kingdom and the United States. The finance department receives bilateral or multilateral ABS requests and requests an annual report. They offer not only protection against the risks of double taxation, but also greater security of tax liability. A complete list of global double taxation treaties is available on the website of the National Ministry of Revenue. Here you will find a list of the global double taxation treaties currently under negotiation. “The conclusion of a comprehensive double taxation agreement with the mainland, in collaboration with the Mainland & Hong Kong Closer Economic Partnership Arrangement, will further incentivize international investors to enter the continental market via Hong Kong. It will also improve cross-border financing mechanisms and the transfer of technical know-how and patent rights between the two localities. These will help promote Hong Kong`s economy, improve our competitiveness and attract foreign capital.┬áThe agreement applies to the United Kingdom from 1 April 2011 for corporation tax and, from 6 April 2011, to income tax and capital gains tax.

It shall apply to Hong Kong from 1 April 2011. In September 2012, the Finance Commissioner said hong Kong had made “remarkable progress” in establishing its international network of tax agreements since the amendment of the National Revenue Order in March 2010 and that since then the Hong Kong tax treaty network has expanded rapidly. . . .

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