Company Formation Hong Kong

CHECK COMPANY
NAME AVAILABILITY (Step 1)



Articles

Hong Kong – UK Double Tax Treaty

Updated on Friday 20th May 2016

Rate this article
5 5 1
based on 1 reviews


Hong Kong–UK-Double-Tax-Treaty.jpgThe main provisions of the Hong Kong – UK treaty

 
The taxes on income produced by residents of one or both states are regulated through an Agreement for the avoidance of double taxation and the prevention of fiscal evasion. The Government of the Hong Kong Special Administrative Region and the one of the United Kingdom of Great Britain and Northern Ireland have signed the renewed treaty and its protocol on 21 June 2010 and it was entered into force on 20 December 2010.
 
The Agreement for the avoidance of double taxation applies to the residents of the two States. For Hong Kong the definition of residents includes individuals who reside in Hong Kong or who stay in the region for more than 180 days in one assessment period and it also includes any companies incorporated in Hong Kong according to its specific laws. In the case of the United Kingdom the treaty applies to individuals who are liable to tax under the laws of the country and companies incorporated in or managed from the country. 
 

Taxes covered by the Hong Kong – UK treaty

 
The taxes for which the treaty applies in case of Hong Kong are:
- profits tax;
- salaries tax;
- property tax.
 
In case of the United Kingdom the taxes for which the double tax agreement applies are:
- the income tax;
- the corporate tax;
- the capital gains tax.
 
The provisions of the convention also apply to any taxes imposed in place of or in addition to the ones mentioned above. 
 

Types of income covered by the treaty UK – Hong Kong treaty

 
The types of income that are exempt from double taxation according to the double tax treaty include a multitude of sources, among which income from immovable property, business profits, dividends, interest royalties, capital gains, income from employment in Hong Kong or in the UK, or director’s fees, pensions or other income.
 
The treaty stipulates that when an individual or company produces one or more of these types of income the amount will only be taxed in the country where it was produced. This is advantageous for foreign investors in Hong Kong coming from the United Kingdom and vice-versa. The treaty also imposes a preferential rate on the withholding tax on dividends
 
Our representatives can help you with more details about other double tax treaties concluded by the Special Administrative Region. Contact our Hong Kong company formation agents if you have any questions.
 
 

Comments

There are no comments

Comments & Requests


Please note that client queries should NOT be posted here but sent through our Contact page.

Meet us in Hong Kong

Call us now at + 852 8191 3385  to set up an appointment with our company formation experts in Hong Kong. As a DM Advisory client, you will benefit from the joint expertise of local lawyers and consultants for opening an offshore company in Hong Kong.

We offer:

- prompt response to your inquiry (maxim 24 hours);

- cost-efficiency: competitive company formation prices;

- free and complete legal information featured on our site, at your disposal.

Online Incorporation

tax-calculator-hong-kong

Tax Calculator

tax-calculator-hong kong

Testimonials

Francesco-Dagnino.jpg

I have been working with partners at OpenCompanyHongKong.com for several years now and I am extremely pleased with their services. Their team helped my clients extend their businesses in Hong Kong.

Francesco Dagnino, Partner of
Lexia Avvocati
www.LawyersItaly.eu

Read more testimonials

We Recommend ClientPedia

This website is marketed by ClientPedia

Banner-Promoting ClientPedia-244px.jpg

We accept online payments

paypal-logo.png