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Hong Kong – UAE Double Tax Treaty

Hong Kong – UAE Double Tax Treaty

An agreement for the avoidance of double taxation in Hong Kong

The Hong Kong Special Administrative Region and the United Arab Emirates have signed an agreement for the avoidance of double taxation and the prevention of fiscal evasion for taxes on income. The goal of the treaty is to encourage and promote the economic relations between the parties and protect the investors from unnecessary double taxation on income produced in both regions.

Our Hong Kong company formation representatives can give you personalized information about the applicability of the treaty of you are a foreign investor from UAE who wants to open a Hong Kong company.

The taxes covered by the Hong Kong-UAE agreement

The double taxation agreement between UAE and Hong Kong applies on the taxes imposed on income, irrespective of the manner in which they are levied. The taxes for which the treaty applies in Hong Kong are:

– the profits tax;

– the salaries tax;

– the property tax.

For the United Arab Emirates the double taxation agreement covers the following taxes:

– income tax;

– corporate tax.

The treaty applies to any other taxes that may be levied in place of or in addition to the ones described above, after the signature of the agreement. Each of the Contracting Parties is obliged under this agreement to notify each other of any changes in their taxation laws.

Both Hong Kong and the UAE have very advantageous tax systems. If you are a UAE investor in Hong Kong our company formation experts can help you know more about taxation in Hong Kong. Alternatively, if you would like to invest in the UAE and are a Hong Kong resident our partner Dubai lawyers can help you with essential information.

Special definitions in the UAE-Hong Kong treaty

For the purpose of the double tax treaty between Hong Kong and the United Arab Emirates, a resident of one of the Contracting Parties is considered an individual who resides in Hong Kong or the UAE or a company that is incorporated there or normally managed and controlled from Hong Kong or the UAE. A permanent establishment in one of the Contracting Parties includes a place of management, an office, a branch in Hong Kong or the UAE, a factory or workshop.

Our Hong Kong company formation specialists can give you more information about the taxation of dividends paid by a company in one Contracting Party to a company in the other Contracting Party. You can contact us for more detailed information.