Agreement in tax sphere between Netherlands and Hong Kong has come into force

26.10.2011 Signed in March 2010 double taxation avoidance agreement between Hong Kong and Netherlands came into force on the 24th of October current year. The agreement was concluded by the Ministers of Finance of both jurisdictions. The provisions of the document are in accordance with OECD standards and concern DTA sphere and information exchange sphere. In particular the parties agreed to reduce tax rates, e.g. tax rate on dividends is 10%, but there is an exemption if dividends receiver has 10% of the paying company capital or if the dividends receivers are banks, foundations, insurance companies and so on.
Also in the framework of the agreement the issue on co-assistance in tax consulting between the states was settled.

Expert’s opinion

“One more international agreement on double taxation avoidance sphere came into force. This time counterparts are Netherlands and Hong Kong that are nowadays among the most popular jurisdictions for investments. Cancelling some inconvenient moments in taxation the states are looking forward to cooperation strengthening and economic connections improving. Moreover taking into consideration the interest of Netherlands to attract additional investor flows maybe Hong Kong will be able to resolve such task”.

On the basis: www.tax-news.com

Andrianova Irina ( the lawyer of international consulting department of Honest&Bright Company )