Hong Kong Vietnam Double Taxation Agreement

Here you will find access to a library of resources from Vietnam`s current trade agreements, including DBAas and bilateral investment agreements. The material in this article comes from the October 2011 edition of Vietnam Briefing Magazine, entitled “Vietnam`s International Taxation Agreements”, available as a PDF download from the Asia Briefing Bookstore. In this issue, we insert Vietnamese free trade agreements and the importance of avoiding double taxation for Vietnamese investments. Under the Convention, Switzerland is exempt from double taxation. In addition, the withholding tax rate has been reduced to 10%. In addition, a double taxation treaty between Hong Kong and Saudi Arabia is currently underway. There is also a Memorandum of Understanding with China, under which the Hong Kong/Luxembourg DBA was updated in November 2010 to include the article on information exchange so that the agreement is in line with international standards of the Organisation for Economic Co-operation and Development. The legislation allows Hong Kong to conclude comprehensive ATDs that contain the Organisation for Economic Co-operation and Development `OECD) international standard for information exchange. Until June 2001, there were no comprehensive double taxation treaties in Hong Kong. Since then, however, the number of contracts has grown quite rapidly. In August 2006, the Chinese and Hong Kong authorities signed an agreement to avoid double taxation, which aims to ensure the security of tax debt for investors and taxpayers in both locations and to provide tax savings. In September 2012, the Finance Commissioner said Hong Kong had made “remarkable progress” in establishing its international network of tax treaties since the amendment of the National Revenue Order in March 2010 and that since then the Hong Kong tax treaty network has expanded rapidly. As of March 2018, 37 comprehensive double taxation treaties were in force in Hong Kong.

Regarding the new deal, Donald Tsang announced that the updated deal reduces the withholding tax from 20% to 15% for Hong Kong residents who receive dividends from real Estate Investment Trusts in the UK. Withholding tax for Hong Kong residents who receive royalties and interest from the UK is also limited to 3% instead of the non-contractual rate of 20%. . . .