Hong Kong and United Arab Emirates sign tax treaty

The Financial Secretary, Mr. John C Tsang, signed an agreement with the United Arab Emirates Minister of State for Financial Affairs, HE Obaid Humaid Ai Tayer, for the avoidance of double taxation on 11 December 2014 in Dubai. This is the 32nd comprehensive agreement for the avoidance of double taxation (“CDTA”) concluded by Hong Kong with its trading partners.

The following countries have singed the CDTA with Hong Kong:

Belgium, Thailand, the Mainland of China, Luxembourg, Vietnam, Brunei, the United Kingdom, Austria, France, Hungary, Ireland, Japan, Liechtenstein, the Netherlands, New Zealand, Malta, the Czech Republic, Indonesia, Portugal, Spain, Malaysia, Switzerland, Jersey, Kuwait, Canada, Guernsey, Mexico, Italy, Qatar, Korea, South Africa.

Under the signed CDTA, Hong Kong residents are entitled to different tax preferential treatment. For example, tax paid on an income according to the regulation of certain countries will be allowed as a credit against Hong Kong tax payable on that income. However, the amount of tax credit shall not exceed the amount of tax payable in respect of that income calculated in accordance with the local tax laws and regulations.

The above information was extracted from the press release of Hong Kong Inland Revenue Department. For more information, please visit the website: http://www.ird.gov.hk/eng/ppr/archives/14121101.htm.

Disclaimer:

The publication contains information in summary form and is therefore intended for general guidance only.  This publication is not intended as legal, accounting or other professional advice and should not be relied upon as such.  If legal, accounting or other professional advice or expert assistance is required, the services of a competent professional should be sought.  Neither Reanda Lau & Au Yeung Limited nor any related entity shall have any liability to any person or entity that relies on the information contained in this publication.