The Hong Kong – Belarus double tax treaty entered into force at the end of November. The treaty was signed in January 2017 and it is one of the three double tax treaties signed by Hong Kong that have recently entered into force. The provisions of the treaty will produce effects starting with the year of assessment starting after April 1, 2018.
One of our Hong Kong company formation experts can give you complete information on how this treaty can influence your business if you are an entrepreneur from Belarus doing business in the Special Administrative Region.
The provisions of the double tax treaty with Belarus
The agreement for the avoidance of double taxation signed between Belarus and Hong Kong will limit the withholding tax on dividends levied at the source to five percent. The withholding tax on interest will also be capped at five percent while the withholding tax on royalties will be limited to three percent for income derived from royalties made by using aircrafts (and five percent for all other cases).
The taxes for which the double tax treaty will apply in case of Hong Kong are the profits tax, the salaries tax, and the property tax. In case of Belarus, the treaty will apply for the income tax, the profits ta, the personal income tax and the tax on immovable property. One of our agents who specialize in company registration in Hong Kong can give you more details on the provisions of the Agreement.
Double tax treaties in Hong Kong
Hong Kong is expanding its number of double tax treaties. The one with Belarus is the third, following the ones with Latvia and Pakistan, that have entered into force at the end of the year and will start to apply for both of the signatory parties from the year of assessment 2018. Until now, the Special Administrative Region has signed more than 35 such treaties for the avoidance of double taxation.
Investors interested in Hong Kong company formation who wish to know more how a particular tax treaty can influence the taxation of their business can contact us.