This document contains the following information: agreements between the United Kingdom and Hong Kong to avoid double taxation. The new tax regime came into force in Hong Kong from the tax year on April 1, 2007. With regard to continental taxes, it applies from the taxable year from 1 January 2007. “Many sites in the region have already set up a network of CDTs. Such a network for Hong Kong will put us on an equal footing with other parts of the region that have already been networked through such a network, which will further enhance our competitiveness in attracting foreign investment,” said Ma. Governments have recognized that this would be unfair and discourage international trade/business. As a result, they each put in place their own rules to prevent the same income from being taxed twice. In some cases, the amount of tax paid in one country can be deducted from what is due in another country. These agreements or contracts are called Double Tax Agreements (DBA) and should be integrated into your tax planning system. In addition, there is a double taxation agreement between Hong Kong and Saudi Arabia, which is currently pending. There is also a Memorandum of Understanding with China that “the conclusion of a comprehensive double taxation agreement with the mainland, along with the closer economic partnership agreement on the mainland and in Hong Kong, will provide a greater incentive for international investors to enter the continental market via Hong Kong. In addition, cross-border financing agreements and the transfer of technical know-how and patents between the two sites will be improved. These will help stimulate Hong Kong`s economy, strengthen our competitiveness and attract foreign capital.
The following information provides succinct details on some important double tax evasion agreements signed by SADA Hong Kong. With regard to the new agreement, Donald Tsang announced that the agreement to avoid double taxation of income and the prevention of tax evasion broadened the scope of the original agreement on profits and income from human services, which both parties signed in 1998. In September 2012, the Commissioner for Finance stated that Hong Kong had made “remarkable progress” in establishing its international network of tax treaties since the change in the internal income system in March 2010, and that since then the network of tax treaties in Hong Kong has rapidly expanded. As of March 2018, 37 global double taxation agreements were in force in Hong Kong. Income taxation can be a problem for international workers and individuals who may reside in more than one country. In countries where global taxation is applied, a non-resident national working abroad could be taxed on his or her income in his or her country of origin and in the country where he or she is earned.