Mar 2010 - 3 new Comprehensive Double Taxation Agreements

Hong Kong has just signed three CDTAs with Brunei, the Netherlands and Indonesia on 20, 22 and 23 March 2010 respectively.

The objectives of CDTAs are mainly to avoid double taxation, grant reduction in withholding taxes on a reciprocal basis and provide tax certainties in connection with cross-border economic activities. In addition, they will also allow tax authorities of two contracting parties to exchange information on taxpayers to prevent avoidance or evasion of taxes. The three CDTAs will come into force after the completion of ratification procedures on in Hong Kong and the Contracting States.

Including the three new CDTAs, Hong Kong now has 8 CDTAs. The three CDTAs are the first batch of CDTAs signed by Hong Kong using the latest OECD standard on exchange of information (EoI). With the amendment to its tax law on EoI, Hong Kong has accelerated its treaty negotiations with other countries and should be able to build up its own network of CDTAs soon.