The double tax treaties between Hong Kong and Latvia and Pakistan have entered into force after the ratification procedures were completed. The two agreements will effective starting with the year of assessment 2018/2019.
These are part of Hong Kong’s broader policy to expand its double tax treaty network, a beneficial one for all foreign investors looking to open a company in Hong Kong.
The double tax treaty with Latvia
The Hong Kong – Latvia double tax treaty was signed in April 2016 and it applies to all taxes levied by the respective tax authorities of the contracting parties. For Hong Kong, the taxes to which the treaty applies are the profits tax, the salaries tax, and the property tax. For Latvia, the treaty applies to the enterprise income tax and the personal income tax.
The types of income for which the double tax treaty applies include income from immovable property, business profits, profits derived by companies involved in shipping and air transport, dividends, interest, royalties and capital gains. Investors from Latvia who want to open a Hong Kong company can benefit from the provisions of this treaty if they derive profits from both jurisdictions.
The double tax treaty with Pakistan
The Pakistan – Hong Kong double tax treaty was signed in February 2017 and it also applies for the profits tax, salaries and property tax levied by the Hong Kong Inland Revenue Department, applicable to Pakistan entrepreneurs or employees in the Special Administrative Region. The taxes for which the treaty applies in case of Pakistan are the income tax and the super tax.
Hong Kong has signed more than 30 double tax treaties to this date and officials plan on expending the treaty network.
One of our Hong Kong company formation agents can give you complete information on the treaties signed so far as well as precise information about their provisions, according to the jurisdiction that interests you.
Contact us for more information on taxation in Hong Kong and other issues related to company formation.