Comprehensive Agreement for Avoidance of Double Taxation

Double taxation arises when two or more tax jurisdictions overlap, such that the same item of income or profit is subject to tax in each.  The international community generally recognizes that double taxation hinders the exchange of goods and services, movements of capital, technology and human resources, and poses an obstacle to the development of economic relations between economies. 

A comprehensive avoidance of double taxation agreements ("CDTA") helps minimize double taxation.  A CDTA provides certainty to investors on the taxing rights of the contracting parties; helps investors to better assess their potential tax liabilities on economic activities; and provides an added incentive for overseas companies to do business in Hong Kong, and likewise, for Hong Kong companies to do business overseas.  The Government recognizes the above merits of concluding CDTAs with our trading and investment partners.  Therefore, it is the Government’s policy priority to establish a network of CDTAs with our major trading and investment partners, as well as emerging economies with which we see potential for growth in bilateral trade and investment.  Hong Kong will continue to actively pursue CDTA discussions with our trading partners.

Meanwhile, since the enactment of the Inland Revenue (Amendment) (No.2) Ordinance 2013 in July 2013, Hong Kong has made available the legal framework to enter into tax information exchange agreements with other jurisdictions.

• A list of jurisdictions with which Hong Kong has signed CDTAs with
• Comprehensive Double Taxation Agreements concluded

Major Milestones in Pursuing CDTAs with Other Jurisdictions

• General Revenue
• Tax Policy
• Comprehensive Agreement for Avoidance of Double Taxation