Does Hong Kong Have A Double Tax Agreement With Australia

In November 2010, the Hong Kong-Luxembourg DBA was updated to include the article on information exchange, so that the agreement is in line with the international standards of the Organisation for Economic Co-operation and Development. Under Article 151 of the Basic Law, Hong Kong is free to negotiate its own double taxation treaties independently of mainland China (i.e.dem the rest of the People`s Republic of China) using the abbreviation Hong Kong, China. The region should not use double taxation treaties that China might enter into, as these agreements only mention continental taxes. Mainland China will also not impose the conditions of double taxation treaties in the territory, since it guaranteed Hong Kong, in accordance with Articles 106 to 108 of the Basic Law, the right to maintain an independent tax regime without continental interference until 2047. The agreement applies to the United Kingdom from 1 April 2011 for corporation tax and, from 6 April 2011, for income tax and capital gains tax. It shall apply to Hong Kong from 1 April 2011. In addition, a double taxation treaty between Hong Kong and Saudi Arabia is currently underway. There is also a Memorandum of Understanding with China, in which the French Agreement (ratified in December 2011) reduces from 25% to 10% the withholding tax paid by Hong Kong residents who receive dividends from France that are not attributable to a permanent establishment in France. Similarly, Hong Kong residents who receive royalties from France will lower the withholding tax from 33.33% in France to a maximum of 10%. The French withholding tax for Hong Kong residents will be reduced from 18% to 10%.

“Many places 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 localities in the region that already have one, thus further improving our competitiveness in attracting foreign investment,” Ma said. The agreement also plays a role in protecting the Treasury by providing for provisions to combat tax evasion and avoidance, including through measures providing for the exchange of information between tax authorities. All recent UK double taxation treaties largely follow the approach taken in the Organisation for Economic Co-operation and Development (OECD) Model Convention on Income and Capital. The agreements provided for the College continue this approach. The updated agreement reduced withholding tax from 20% to 15% for Hong Kong residents who receive dividends from uk Real Estate Investment Trusts. Withholding tax for Hong Kong residents who collect royalties and interest from the UK is also limited to 3%, instead of the non-contractual rate of 20%. The Hong Kong/Uk CDTA replaces the limited double taxation agreements in place to avoid airlines for airline revenues and shipping revenues. As regards taxes in Hong Kong, the new regime came into force from or after the tax year beginning on or after 1 April 2007.

As regards continental taxes, it shall apply from the fiscal year beginning on or after 1 January 2007. Non-Australian residents who earn Australian interest and uneven dividends are debited from a withholding tax of 10% and 30% respectively. . . .

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