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Hong Kong-France Double Tax Treaty

Hong Kong-France Double Tax Treaty

Benefits for Hong-Kong and French investors

double tax treaty between Hong Kong and France protects individuals who do business in both countries from overlapping taxation. This is a concern when two jurisdictions impose taxes on the same type of profit and this agreement between France and Hong Kong allows only for the income produced in Hong Kong to be taxed on a territorial basis.

This double taxation agreement is just one of the many concluded by Hong Kong with its trading partners. These treaties help strengthen the relationships with other countries, encourage foreign investments and help business people better assess their tax liabilities when doing business in more than one country.

The taxes covered by the Hong Kong treaty

The double tax treaty between France and Hong Kong applies on taxes on income and capital imposed by the local authorities, irrespective of the manner in which they are levied. The taxes to which the agreement applies in case of Hong Kong are:

– the profits tax;

– the salaries tax;

– the property tax.

For France the double tax treaty applies to:

– the income tax;

– the corporate tax;

– the contributions on the corporation tax;

– the tax on salaries;

– the wealth tax;

– widespread social security contributions.

If you are a Hong Kong investor in France and need comprehensive information about the taxation system in this country, our partner French lawyers can help you with information.

Other provisions of the double taxation agreement 

The types of income for which the double tax treaty applies are as follows:

– income from immovable property;

– business profits;

– income from shipping and air transport activities;

– dividends, interest, royalties, capital gains;

– income from employment or director’s fees;

– pensions and special income for students or athletes/artists as well as other income.

For the purpose of the agreement, a permanent establishment in based in one of the two Contracting Parties is a fixed place of business from which corporate activities are wholly or partially carried on. This establishment can be an office, a branch in Hong Kong, a factory or workshop or a building/construction site.

Our Hong Kong company formation agents can help you if you need help complying with the taxation requirements in the city. We can also assist you in other business and company formation matters. You can contact our office in Hong Kong for further questions or to schedule an appointment with one of our experts.