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Hong Kong Vietnam Double Taxation TreatyDecember 2008 For Hong Kong the treaty is its fifth treaty, following previous agreements with Belgium, Thailand, Mainland China and Luxembourg and is expected to elevate the bilateral trade and business activities between both sides. According to the treaty any tax paid in Hong Kong by Vietnam residents and companies would be credited against tax payable in Vietnam. The withholding tax for royalties received by Hong Kong residents from Vietnam would be reduced from current 10% to 7%. Profits from shipping services earned in Vietnam by Hong Kong residents will be tax exempt. Hong Kong airlines operating flights to Vietnam will pay a lower 16.5% corporate tax, compared to the 28% rate in Vietnam. So far Hong Kong has 24 double taxation agreements for airline income with other countries, six agreements on shipping income and two airline and shipping agreements. The new treaty has yet to be signed by both sides. Source : Inland Revenue Department www.ird.gov.hk. |
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