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. The agreement also plays a role in protecting the Treasury by adopting provisions to combat tax evasion and evasion, in part through measures to exchange information between tax authorities. All recent UK double taxation conventions largely follow the Organisation for Economic Co-operation and Development`s (OECD) approach to income and capital tax model. The agreements for the College continue this approach. Hong Kong Income Taxed Overseas Deduction: Individuals and businesses that are taxed abroad on their income in Hong Kong are allowed to deduct. The agreement applies in the United Kingdom from 1 April 2011 for corporation tax and from 6 April 2011 for income and capital gains tax. It applies from April 1, 2011 in Hong Kong. In addition, under the DBA, Hong Kong airlines flying to Brunei are taxed at the Hong Kong corporate tax rate (which is lower than Brunei`s). Profits from international shipping made by Hong Kong residents but made in Brunei, which are currently taxable in Brunei, will be tax-exempt under the agreement. The National Financial Service accepts applications for bilateral or multilateral APA and requires annual reports.
They offer not only protection against the risk of double taxation, but also greater security in terms of tax liability. More details can be found in the press release and presentations: consulfrance-hongkong.org/16-Dec-2011-Comprehensive-Double details of the CDTA in Hong Kong/France are available on the website of the Department of Internal Revenue: www.ird.gov.hk/eng/pdf/Agreement_France_HongKong.pdf Signing of the agreement between France and Hong Kong in October 2010 (in French): consulfrance-hongkong.org/La-France-et-Hong-Kong-signent-un Advanced Pricing Arrangements is another tool to help companies reduce the risk of double taxation.