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Double Tax Treaties in Hong Kong

Double Tax Treaties in Hong Kong

By Vlad Cuc, specialist in company formation matters 

Avoid double taxation in Hong Kong

Hong Kong has adouble taxation relief policy, meaning that double taxation will not arise when two different tax jurisdictions overlap. This allows companies that have multiple headquarters to avoid taxation in all the countries where they produce profit.

Hong Kong has a territorial taxation and only the profit/income produced in Hong Kong is subject to the applicable taxation principles. In most cases, company income from sources other than Hong Kong is not taxed.

Our company formation specialists in Hong Kong can give you complete details about the taxation regime for your compan and can assist you through the entire process of setting up a company in Hong Kong.

Double taxation agreements in Hong Kong

The Hong Kong Special Administrative Region Government concluded several comprehensive double taxation agreements/arrangements with Hong Kong’s trading partnersDTAs or tax treaties prevent double taxation and fiscal evasion. They are also an important tool for increasing the cooperation between Hong Kong and other international tax administrations. A DTA produces effects for resident Hong Kong companies and companies resident in a jurisdiction where a DTA is in force.

double taxation agreement is useful for foreign investors not only because it allows for taxes to be paid only once, but also because they can assess their tax liabilities according to the type of activity they perform in Hong Kong and other partner countries. Branches and subsidiaries in Hong Kong also benefit from these agreements.

Our CPA in Hong Kong can give you complete details about the provisions of a specific double tax treaty and how this can affect your international business. We offer advice and assistance to companies interested in preparing the annual financial statements and maintaining proper books of account. You can contact us for more information about our accounting solutions.

Double taxation agreements concluded by Hong Kong

Hong Kong has signed30 double tax agreements and negotiations are being held to sign even more agreements with other countries. The concluded comprehensive double taxation agreements are with: Austria, Belgium, Brunei, Canada, the Czech Republic, France, Guernsey, Hungary, Indonesia, Ireland, Italy, Japan, Jersey, Korea, Kuwait, Liechtenstein, Luxembourg, Mainland China, Malaysia, Malta, Mexico, the Netherlands, Portugal,  Qatar, South Africa, Spain, Switzerland, Thailand, the United Kingdom, Vietnam (pending). 

Negotiations are in progress with countries like Germany, Finland, Romania, Russia, the United Arab Emirates and others.

Our company formation agents in Hong Kong are ready to help you with various issues concerning the process of setting up a company in Hong Kong. We can help you open a company in Hong Kong