Hong Kong DTA – Double Taxation Agreement

Double Taxation Agreements(DTAs) in Hong Kong prevent double taxation and fiscal evasion, and foster cooperation between Hong Kong and other international tax administrations by enforcing their respective tax laws.  Only residents of Hong Kong or the other DTA jurisdiction will be affected by a DTA.

Hong Kong’s DTAs operate to:

  • reduce or eliminate double taxation due to overlapping tax jurisdictions;
  • be secure about the tax rules that will apply to particular international transactions by –
    • allocating taxing rights between the jurisdictions over different categories of income,
    • specifying rules to resolve conflicting claims about the residential status of taxpayers and source of income,
    • providing an avenue for a taxpayer to present a case to the relevant tax administrations if a taxpayer considers there has been taxation treatment contrary to the terms of a DTA;
  • prevent avoidance and evasion of taxes on different forms of income flows between Hong Kong and the DTA partners by –
    • providing for the allocation of profits between associated enterprises seperately,
    • providing for information exchange between the respective tax administrations; and
  • facilitate investment, trade, movement of technology, and movement of personnel by reducing rates of foreign withholding tax.

Comprehensive Double Taxation Agreements concluded (for Hong Kong company):

Austria, Austria (Protocol), Belgium, Brunei, Canada, Czech, France, Guernsey, Hungary, Indonesia, Ireland, Italy, Japan, Jersey, Korea, Kuwait, Liechtenstein, Luxembourg, Luxembourg (Protocol), Mainland of China, Mainland of China(2nd Protocol), Mainland of China(3rd Protocol), Mainland of China(4th Protocol), Malaysia, Malta, Mexico, Netherlands, New Zealand, Portugal, Qatar, South Africa, Spain, Switzerland, Thailand, United Arab Emirates, United Kingdom, Vietnam, Vietnam (Protocol)

Supporting links:

http://www.ird.gov.hk/eng/tax/dta_inc.htm

http://www.ird.gov.hk/eng/tax/dta_cdta.htm