Global agreements to avoid double taxation have been concluded between Hong Kong and the following countries (with „effective“ data to avoid double taxation: according to the treaty, the withholding tax for savings income is set at zero in the country of the payer, while dividends are set at a maximum of 10%. The withholding tax on licensing revenues is also limited to a maximum of 3%. Hong Kong currently has free trade agreements with mainland China, New Zealand, Iceland, Liechtenstein, Norway, Switzerland, Chile, Macau, Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, Vietnam and Georgia. Hong Kong has also concluded negotiations with the Maldives and Australia. This brings Hong Kong`s total number of free trade agreements to 21. The updated contract reduced the withholding tax from 20% to 15% for Hong Kong residents who received dividends from uk real estate investment trusts. In addition, withholding tax is limited to 3% for Hong Kong residents who collect royalties and interest from the United Kingdom, instead of the non-contract rate of 20%. The Hong Kong CDTA in the United Kingdom replaces existing limited double taxation agreements for airline revenues and shipping revenues. The free trade agreement between Hong Kong and FINA with Australia will promote and strengthen bilateral relations between the two countries. It will provide security for Hong Kong companies operating in Australia and provide Hong Kong exporters with educational, financial and professional services with better access to the Australian market. Keep in mind that you may still have a taxpayer in Australia, even if you have not been physically present in Australia all year. Check your position with a professional advisor. The new section requires contracting parties to exchange information after receiving a request for information, even if no national tax interest is involved.
It does not allow any of the parties to refuse to provide information solely because the information is held by a bank, another financial institution, a candidate or a person acting in an agency or trust property. This protocol came into force in August 2011. Hong Kong also has 20 fa agreements with Australia, Austria, Belgium, Luxembourg, Canada, Chile, Denmark, Finland, France, Germany, Italy, Japan, Republic of Korea, Kuwait, netherlands, New Zealand, Sweden, Switzerland, Thailand and the United Kingdom. Under Article 151 of the Basic Law, Hong Kong is free to negotiate its own double taxation conventions independently of mainland China (i.e..dem the rest of the People`s Republic of China), using the acronym Hong Kong, China. The territory cannot resort to double taxation agreements that China can enter into, as these treaties only mention taxes on the continent. Mainland China will also not impose double taxation conventions on the territory, since under Articles 106 to 108 of Hong Kong`s Basic Law, it guaranteed the right to maintain an independent tax system without continental interference until 2047. Under the Convention, Switzerland is exempt from double taxation. In addition, the withholding rate at source has been reduced to 10%.
„Many sites in the region have already set up a network of CDTAs. Such a network for Hong Kong will put us on an equal footing with other parts of the region that have already been networked through such a network, which will further enhance our competitiveness in attracting foreign investment,“ said Ma. Under the agreement, Hong Kong residents who receive dividends from New Zealand that are not attributable to an institution in New Zealand are subject to a reduced withholding rate of 15%. The withholding rate is further lowered to 5% or 0% for eligible beneficiaries. Hong Kongers who receive royalties from New Zealand pay a withholding tax capped at 5%.