E Pluribus Unum - Out of Many, One

A full list of global double taxation agreements can be accessed on the Department of Internal Revenues website. Here is a list of the global double taxation agreements being negotiated. Airlines (such as passenger airlines, air freight, etc.) may be more vulnerable to double taxation because of the international nature of their airlines. Bilateral air services agreements have been concluded because they can be negotiated and concluded much more quickly than double taxation agreements. Hong Kong has 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, the Netherlands, New Zealand, Norway, the Federation of Russia Sweden, Switzerland and the United Kingdom. Hong Kong`s tax authorities have made significant efforts to eliminate double taxation where possible, as evidenced by the multitude of laws to facilitate double taxation. These measures include national provisions providing for unilateral relief, comprehensive double taxation agreements, bilateral air services agreements, shipping revenue agreements and extensive pricing agreements. Hong Kong is based on the territorial tax base, which provides that only Hong Kong`s income is subject to any type of tax (profits or payroll tax). This principle generally ensures that most people in Hong Kong do not suffer from double taxation. In September 2012, the Commissioner for Finance stated that Hong Kong had made “remarkable progress” in establishing its international network of tax treaties since the change in the internal income system in March 2010, and that since then the network of tax treaties in Hong Kong has rapidly expanded. As of March 2018, 37 global double taxation agreements were in force in Hong Kong. If you feel that you have not benefited from the reasonable exemption from double taxation guaranteed by a double taxation contract, you can order the assistance of the Hong Kong authority responsible for the treaty. Hong Kong`s competent authority is the Commissioner for Domestic Revenues.

This process is also called the mutual agreement procedure. The Hong Kong Competent Authority is responsible for the following issues: the updated contract reduced the withholding tax from 20% to 15% for Hong Kong residents who receive dividends from real estate investment trusts in the UK. In addition, withholding tax is limited to 3% for Hong Kong residents who collect royalties and interest from the United Kingdom, instead of the non-contract rate of 20%. The Hong Kong CDTA in the United Kingdom replaces existing limited double taxation agreements for airline revenues and shipping revenues. Shipowners are at particularly high risk of double taxation. Hong Kong legislation provides for a reciprocal tax exemption for the profits of ships. Hong Kong has agreements with Denmark, Germany, Norway, the Netherlands, the United Kingdom and the United States. The agreement also plays a role in protecting the Treasury by adopting provisions to combat tax evasion and evasion, in part through measures to exchange information between tax authorities. All recent UK double taxation conventions largely follow the Organisation for Economic Co-operation and Development`s (OECD) approach to income and capital tax model. The agreements for the College continue this approach. Despite the low risk of double taxation in Hong Kong, the government has signed a vast network of double taxation agreements, as investors reduce the security and risk they offer.

The benefits are as follows: The country`s finance department accepts requests for bilateral or multilateral APA and requires annual reports.


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