Prevention of double taxation for Hong Kong and Austrian investors
Hong Kong and Austria have signed a double taxation agreement that prevents individuals and companies from being taxed twice in the two regions. At the same time the treaty allows the Governments to control and prevent fiscal evasion and it forms a better alliance between Hong Kong and Austria.
If you are a foreign investor from Austria in Hong Kong or vice versa this treaty will provide benefits related to the taxation of income in one or both regions. Our Hong Kong company formation representatives can give you detailed information about how the treaty can influence the taxation of your income.
The provisions of the double tax treaty
The Double Tax Agreement (DTA) between Hong Kong and Austria applies to persons who are residents of one or both Contracting Parties. For the purpose of the treaty, a “national” in Austria is an individual who possesses the nationality of citizenship in one of the two countries or a legal person or partnership that has this legal status in one of the countries. A resident in the Hong Kong Special Administrative region is an individual who is a Hong Kong resident or who stays in the region for more than 180 days during one financial year. A resident in Hong Kong can also be a company incorporated in Hong Kong or managed and controlled in Hong Kong.
The types of income described and regulated by the treaty are:
– income from immovable property;
– business profits;
– income derived from shipping and air transport;
– dividends, interest and royalties;
– capital gains;
– income from employment and other types of income.
Our company registration agents in Hong Kong can tell you more about how the treaty influences the dividends and payments made by branches in Hong Kong.
The taxes covered by the Hong Kong-Austria treaty
The Hong Kong-Austria double tax treaty applies to taxes on income and capital imposed on behalf of a Contracting Party. For Hong Kong the taxes are:
– the profits tax;
– the salaries tax;
– the property tax.
In case of Austria, the taxes covered by the treaty are:
– the income tax;
– the corporate tax;
– the land tax;
– the tax on agricultural and forestry enterprises;
– the tax on the value of vacant plots.
For more information about taxation in Hong Kong as well as a comprehensive list of the double taxation agreements concluded with other countries you can contact our Hong Kong company formation specialists.