Hong Kong and SAR concluded Agreement for avoidance of double taxation

17.10.2014

Hong Kong concluded an agreement on avoidance double taxation with SAR. This agreement is the 31st such agreement for Asian jurisdiction.

Income tax for legal entities and for persons and property tax are covered by the Agreement for Hong Kong. Normal tax, withholding taxes for dividends, royalties and interest, and also targeted tax for foreign artists and sportsmen are covered by the Agreement for SAR.

In accordance with the Agreement the aforementioned taxes can be imposed on the taxpayers only in one country.

The Agreement also includes provisions on exchange of tax information between Hong Kong and SAR in accordance with international standards.

Source: http://www.ird.gov.hk/eng/pdf/Agreement_South_Africa_HongKong.pdf

Expert’s opinion

 SAR is the most developed country from the South of Africa. Unsurprisingly there is a big part of Chinese capital flowing through the SAR.

And China, as we all know, expanses world economics through its city of wonders, Hong Kong.

Yaroslav Lomakin ( Managing Partner, Honest & Bright Company Ltd.)