After the presentation by Legislative Council, that took place on 9th of October 2013, Hong Kong will conclude tax treaties with Italy, Guernsey and Qatar. They will be in effect as soon as all the details are agreed upon.
Double Taxation Agreement (DTA), which covers various types of income, brings certainty to investors on the taxing rights of the contracting parties. It also allows them better assess their potential tax liabilities on economic activities. It motivates overseas companies to do business in Hong Kong, and likewise, Hong Kong companies to do business overseas.
13 years ago Hong Kong had no comprehensive double taxation agreements in place. According to the Inland Revenue Commissioner Hong Kong has taken “remarkable steps forward” in establishing its international tax treaty network since the amendment to the Inland Revenue Ordinance in March 2010. Nowadays we can see the rapid expansion of Hong Kong’s tax treaty network.
The most recent DTAs that are in force were concluded with Austria, Czech Republic, Indonesia, Ireland, Jersey, Malaysia, Malta, Portugal, Spain, Switzerland, UK.