Hong Kong and Malta have signed DTA agreement

09.11.2011 On the 8th of November the officials of Malta and Hong Kong signed DTA agreement between the appropriate states.
For Hong Kong it will be the 22th DTA agreement that was signed with the states – trade partners of this jurisdiction.
According to the text of agreement the rights and duties in tax sphere are established and there is relief of tax burden on some kinds of income. Thus, e.g. physical persons – the residents of Malta that get income in Hong Kong don’t need to pay income tax in both states but only on the territory of Hong Kong. The same provision is related to corporations that pay taxes in other contracting country.
This agreement will come into force after finishing ratification procedures by both parties.

Expert’s opinion

“DTAA after its coming into force will let Malta and Hong Kong to strengthen the existing ties and establish new trade and economic ones. Hong Kong is an attractive jurisdiction from taxation point of view. Russian business would get significant advantages if the Russian Federation and Hong Kong concluded such an agreement in tax sphere”.

On the basis: www.tax-news.com

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